I -~-ANNUAL 1975 Reference Do Not Remove Commissioner I .of Internal Revenue L

Introduction We also recognize our obligation to carry This report describes what the Internal out a strong enforcement program to as- Revenue Service did in 1975 and how it did sure you, the many taxpayers who consci- it . It also describes what you, the taxpayer, entiously comply with the law, that those did and how well you met your responsibili- few who do not will be held accountable . ties. Fiscal Year 1975 was a period of That is why we have done our best to particular stress for the Service, and in this design an enforcement program that is fair, period Congress began its intensive interest effective and comprehensive-one de- in IRS oversight . I testified eighteen times signed to treat all taxpayers uniformly and before various congressional committees with full recognition of their legal rights . during FY 1975. Out of this stress, this self- This report describes these activities and examination and this heightened congres- others . It discusses our continuing efforts to sional activity will come a more responsive make sure that taxpayers understand their and responsible system of tax administra- rights as well as their responsibilities under tion . the law . It describes technical and adminis- In 1975 the Service collected nearly $294 trative activities that may not be apparent to billion in Federal taxes . The 1975 filing most taxpayers but which are necessary to period was highly successful from the the overall job of tax administration . A new standpoint of the IRS and taxpayers as chapter on Employee Plans and Exempt more and better returns were filed earlier Organizations describes how we carried out than ever before . Anticipating taxpayers' our new responsibilities under the Em- need for a prompt refund, the Service ployee Retirement Income Security Act of 1974. , responded by processing returns faster than ever before . 1A- le11 hope thatH this119 report will help -you- utatw The Tax Reduction Act of 1975, passed by understand tax administration and enforce- the Congress midway through the filing ment . period, called for a rebate of a portion of individual taxpayers' 1974 tax liability . This rebate program made unprecedented de- mands upon us, both in data processing and taxpayer service . The record shows how we responded to this challenge . The real credit for this year's successful Donald C . Alexander filing period again goes to the American Commissioner people for the honest and conscientious way that the vast majority met their tax responsibilities . We in the Service recognize our obligation to provide you with the information and assistance you need in order to prepare your return and in 1975 we continued to improve these services. Table of Contents Chapter 6 International Programs Tax Administration Abroa d 44 Technical Assistance To Foreign Chapter 1 Taxpayer Service Countries 4 6 Assisting Taxpayers 6 Tax Form Improvements 7 Chapter 7 Legal Activities Communications With Taxpayers 8 Tax Publications 8 Responsibilities of the Chief Counsel 48 The Mass Media 8 Litigation 49 Electronic Tax Service 9 Technical 57 Administration 58

Chapter 2 Collecting the Revenue Chapter 8 Planning and Researc h Receipts, Refunds, and Returns Filed 12 Rebate Program is Planning Activities 60 Presidential Election Campaign Fund 19 Research and Testing 61 Mathematical Verification 20 Legislative Activities 62 I Income Sources on Magnetic Tape 20 Federal-State Cooperation 63 Statistical Activities 6 4

Chapter 3 Insuring Compliance Chapter 9 Internal Management of IRS Audit of Returns 22 Maintaining Integrity and Efficiency 68 Delinquent Accounts 28 Management and Administration 72 The Appeals Process 30 Advisory Groups 7 6 Tax Fraud Investigations 3 2

Chapter 10 Appendix Chapter 4 Technical Activitie s IRS Organizational Chart 78 Tax Rulings and Technical Advice 36 Map of Regions, Districts, and Internal Revenue Bulletin 37 Service Centers 79 Accounting Methods Rulings 38 Commissioners of the IRS (1862-1975) 80 Principal Officers of the IRS as of 30, 1975 82 Chapter 5 Employee Plans and June Exempt Organizations Audit Charts and Tables 8 7 Statistical Tables 119 Employee Plans 40 Index 149 Exempt Organizations 4 1 Actuarial Matters 41 4

Notes Chapter 1 All yearly data are on a fiscal year basis unless otherwise specified . For example, Taxpayer Service data headed "1975" pertain to the fiscal year ended June 30, 1975; data shown as of "July 1" are data as of July 1, 1974 . In many tables and charts, figures may not add to totals, due to rounding . Assisting Taxpayers Tax Form Improvements Communications With Taxpayers Tax Publications The Mass Media Electronic Tax Service

For sale by the Superintendent of Documents U.S . Government Printing Office Washington, D.C. 20402 Price $2 .8 0 Stock Number 048-004-01300-2 6 7

Assisting The American tax system depends upon service functions now have equal organiza- Other correspondence with taxpayers now We added lines on Schedule A to itemize Taxpayers self-assessment and voluntary compliance, tional status in all IRS districts . This organi- . and miscella- Every year, taxpayers must make their own contains a telephone number and, on man- deductions for taxes, interest zational realignment provides for year-round ually prepared items, the name of an IRS neous expenses, and provided additional determination of their income, exemptions, managers who can give closer attention to D for listing capital and deductions . compute their tax liability, employee to call if there are any questions space on Schedule the program, identify and correct problem about the item of correspondence. gains and losses . and file returns reporting the correct tax . areas, and improve the quality of the pro- The Internal Revenue Service is fully aware gram . The toll-free telephone system has provided Over 2 .6 million tax packages sent to that taxpayers do not find this an easy task taxpayers with greater telephone access to farmers and fishermen were printed on and recognizes its responsibility to help IRS offices and has made the entire assist- recycled paper as a cost reduction and them as much as possible environmental experiment. Public reaction . The IRS be- Telephone Assistance ance program more efficient by reducing lieves that with the assistance it provides the need for a taxpayer to visit an IRS was generally favorable . through answering taxpayers' questions, Toll-free telephone service was again of- office . The Tax Reduction Act of 1975 required the most individual taxpayers should be able to fered in all 58 IRS districts in all 50 states. IRS to revise a number of major forms and prepare their own returns , The actual number of answering sites was : New Form reduced from 135 in 1974 to 85 to develop new forms including In recent years, the IRS has expanded its this year, Special Assistance Programs 1120-FY (1974-75), Corporation Fiscal Year taxpayer service function, improved the which improved the quality and depth of Tax Computation Schedule ; Revised Form assistance to taxpayers at each location . Special efforts were made in 1975 to meet training of taxpayer service representa- the needs of the elderly and low-income 1120-W (1975) . Corporation Estimated In- tives, offered toll-free telephone assistance, Under this system, any taxpayer in the taxpayers unable to visit IRS offices by come Tax: New Form 1040-FY (1974-75), extended the normal business hours of United States may call the IRS for assist- providing them with income tax assistance individual Fiscal Year Tax Computation many IRS offices, and made special efforts ance without having to pay a long-distance tn their own neighborhoods . Over 73,000 Schedule; Revised Form 1040-ES, Individual to help low-income, elderly and non-English telephone charge . Toll-tree numbers are elderly tax- Worksheet for Computation of Estimated speaking taxpayers . listed in the income tax return packages low-income and almost 26,000 payers were served in 197 5 Tax ; New Form 5404-FY (l 974-75), Credit provided to taxpayers . They may also use for Purchase or Construction of New Princi- During 1975, the Service received about The Service again provided special assist- 40 .6 million written, telephone and walk-in the toll-free telephone network to call the pal Residence; Revised Form W-4, Em- IRS for clarification of many of the com- ance to taxpayers speaking foreign lan- ployee's Withholding Allowance Certificate ; inquiries, compared to 34 .5 million in 1974 . guages with 148 IRS offices offering tax The total in 1975,consisted of over 29 puter-generated bills and notices relating to Revised Circular E, Employer's Tax Guide; their accounts . These notices are accom- assistance in Spanish and 154 offices pro- Revised Publication 493, Supplement to million telephone calls, more than 11 million by viding help in other foreign languages . walk-in inquiries, and more than 190,000 panied an enclosure which lists a toll- Circular E; and New Publication 870, Tax free telephone number and suggests that 1975 Filers or 1974-75 Fiscal written inquiries . More than 60 percent of Nearly 800,000 taxpayers received assist- Tables for the taxpayer use the number to obtain ance uhder the Volunteer Income Tax As- Year Filers . these inquiries occurred during the filing assistance or further explanation period from January 1 through April 30, . sistance Program (VITA) in 1975 . The Serv- During 1975, a number of new pension 1975 . During that period, the IRS received ice trained more than 23 .000 volunteers . forms were developed to implement the more than 16 million telephone calls, about who provided free assistance to elderly, Employee Retirement Income Security Act 8 million walk-in inquiries, and over 50,000 Spanish-speaking, low-income and other of 1974, including : Form 5301, Application written inquiries-a total of nearly 25 million taxpayers in their communities . for Determination ; Schedule A (Form 5301), requests for assistance . Plan Characteristics Relevant to the Issu- Walk-in taxpayer service was offered in 750 ance of a Determination Letter; Form 5302, Schedule of Highest Paid Participating permanent offices and nearly 300 tempo- Tax Form The successful 1975 filing period may be 25 rary locations in 1975 For taxpayers unable Employees; Form 5304, Application for De- Improvements attributed partly to the fact that we made termination-individual Retirement Account ; to call or visit an IRS office during normal little change in the 1974 individual income business hours, 550 offices extended their Form 5305, Individual Retirement Trust Ac- tax forms, and taxpayers could use their count Form 5303-A, Individual Retirement hours into the evening on weekdays or 1973 forms as a guide in preparing their were open on Saturdays . Custodial Account ; Form 5306, Application 1974 returns . Returns were more COM- for Approval of Prototype Individual Retire- The number of taxpayer service represen- pletely and accurately prepared with fewer ment Account ; and Form 5330, Return of Ini- tatives was increased from about 1,900 to taxpayer errors this year , tial Excise Taxes on Prohibited Transactions . over 2,300 this year and their training was Among the minor changes we made on this expanded so that they could provide better year's return was the addition of a "no" box service to taxpayers . for the 1976 Presidential Election Campaign While taxpayers were encouraged to pre- Fund check-otf allowing taxpayers to check pare their own returns, IRS personnel pre- either "yes" or "no" regarding their desire pared returns for those who needed such to contribute to the Fund assistance. Schedule 8 (Form 1040) was reintroduced In July 1974, taxpayer service was reorga- Gabrielld Mitchell, a taxpayer service for the reporting of dividends and interest . nized at the district level, separating this representative in the Springfield District, answers Many taxpayers and practitioners found the function from enforcement activities . Under a taxpayer's inquiry about Federal taxes on the reinstatement of this schedule helpful in this change, the collection and taxpayer toll-free telephone system . correctly reporting suclh~ income. 8 9

Communications During 1975, the IRS improvement of form These publications, along with copies of the Electronic The Integrated Data Retrieval System With Taxpayers ~etters, computer notices, and Other simila r various tax forms, were available to individ- Tax Service (IDRS), which links all district and area axpayer communications continued to be a offices and Puerto Rico through video ter- ual taxpayers at IRS offices throughout the minals to computer files at the IRS service major objective . A special unit of writer- country on a walk-in basis . Many banks and editors now reviews all such standard com- post offices also cooperated by making IRS centers, processed an average of 1 .8 mil- munications to humanize them and to make lion inquiries per service center each month forms available to taxpayers. As another during the last half of 1975 . sure they are clear and understandable to option, the taxpayer could order forms or the average taxpayer . National Office units publications by writing or telephoning IRS To cope with the rapid growth in use of and field offices reviewed a total of 2,069 offices . Over 4.4 million of these orders IDRS since it was made operational in forms during the year, and were able to were filled during the last half of 1975. In 1974, the Service has installed larger com- eliminate 553 of them as duplicative or addition, over 79 million individual income puters and related components with faster unnecessary. tax packages were mailed to taxpayers in processing capabilities at all ten IRS serv- The Service continues to try to make all advance of the filing period . ice centers. For example, the IDRS can now taxpayers aware of their rights un der the report on a taxpayer's refund status and on tax laws and to provide complete *and The Mass rebates . which accounted for voluminous taxpayer contacts in 1975 . courteous responses to taxpayer inquiries . Media This increased IDRS capability will also The Service continued to use the nation's provide a better method of controlling infor- mass media to-furnish tax information to the mation concerning the number of audits public . In 1975, over 17,000 radio and TV being conducted, their status and their Tax To reinforce information provided taxpayers stations, daily and weekly newspapers, and disposition. The new system, the Audit Infor- Publications during direct contact . and to assure nation- magazines received material prepared by mation Management System (AIMS), will be wide consistency in the application of the the IRS to inform and assist taxpayers . installed and operating on a pilot basis in tax laws, the Service also distributes, free of Service personnel participated in 6,500 in- 1976 and is scheduled to be operating charge, a number of publications . terviews, answered more than 18,000 me- nationwide in 1977 . dia inquiries, and made 5,500 talks to The major IRS publications are Publication citizen groups . 17, Your Federal Income Tax, Publication 334 . Tax Guide for Small Business, and early 8,800 news releases were issued to Publication 225, Farmer's Tax Guide . Also the media. These releases covered such the Service has issued publications dealing topics as services available to taxpayers, with special tax problems, such as report- appeal rights, correct filing of returns, the ing the sale of a personal residence or Presidential campaign fund check-off, tax computing the value of donated property. advice for disaster victims, and the tax New tax publications developed in 1975 rebate program . Some of the releases were included Publicat16n 587. Tax Information translated into Spanish for use in areas on Operating a Business in Your Home, where it is widely spoken as a second Publication 588, Tax Information on Con_ language . Tax question-and-answer col- dominiums and Cooperative Apartmients~ umns were written for nationwide distribu- Publication 589, Tax Information on Sub- tion to weekly newspapers and magazines . chapter S Corporations; and Publication The Service also produced and distributed 590, Tax Information on Individual Retire- to field offices a 271/2-minute color film on ment Savings Programs, audit and appeals procedures. This IRS film In 1975, we inaugurated tree distribution of was shown on 393 occasions by TV outlets Publication 17, Your Federal Income Tax, and 2,670 occasions by civic associations and Publication 334*, Tax Guide for Small and educational groups from January Business, items that we had charged for through June of 1975 . previously . Distribution reports for 1975 show that 1,5 million copies of Publication 17 and 600,000 copies of Publication 334 were distributed to taxpayers at no charge . 10

Chapter 2 Collecting the Revenue

Receipts, Refunds, and Returns Filed Rebate Progra m Presidential Election Campaign Fund Income Sources on Magnetic Tape Mathematical Verification 1 2 1 3

Receipts, A principal responsibility of the Internal Excise taxes, levied on a variety of prod- IRS service centers received 125.1 million vidual filers, used the short Form 1040A in Revenue Service-probably the world's ucts, services, and activities, declined tax returns in 1975, compared to nearly 122 1975, Perhaps influenced Refunds largest collection agency-is the collection slightly . Receipts from these taxes totaled by the economy, and million in 1974. Individual and fiduciary many taxpayers filed earlier this year, Antic- of tax revenues . In 1975, gross tax collec- $16 .8 billion, dipping $0 .3 billion (1 .5 per- returns totaled 85 .5 million, compared to ipating taxpayers' need for a prompt re- Returns Filed tions rose to a record high of $293 .8 billion, cent), reflecting the continued phasing out 83 .0 million in 1974, More than 22 million .9 billion or 9 .2 percent of the telephone excise tax, elimination of fund, the Service responded by processing an increase of $24 individual taxpayers . 27 percent of all indi- returns faster than in any year in history , over 1974 . in spite of such counteracting the Interest Equalization Tax, and an overall influences as the economic slowdown, and net reduction in receipts from auto and various provisions of the Tax Reduction Act energy related excise taxes . Number of returns filed, by principal type of return of 1975 . Although it is the Service's job to collect (Figures in thousands . For details, see table 7 in Appendix . ) individual and corporation income taxes revenue, the IRS also makes refunds of any accounted for over two-thirds of all tax excessive payments. In 1975, 67 .8 million Type of return 1974 1975 receipts . Individual income tax receipts, regular refund checks were issued, 2,0 Grand total representing more than half Of the total, million more than in 1974, Regular refunds 121,914r 125,11 7 were $156 .4 billion . an increase of $13 .5 this year totaled $32 .2 billion, $4 .0 billion or Income tax, tota l 95,313 r 98,454 billion or 9 .4 percent over the previous 14 .2 percent more than last year . Individual and Fiduciary, tota l 83.029 85,51 9 year . Corporate income tax collections In addition to regular refunds . rebates of amounted to $45.7 billion, up $4 0 billion 1974 individual income taxes, as provided Individual-citizens and resident aliens, tota l 81,480, 83,883 (9 .6 percent) over 1974. by the Tax Reduction Act of 1975, totaled All other individua l 1092 121 2 Employment taxes (Social Security . Unem- $7 .9 billion . Some 54 .7 million checks were ployment and Railroad Retirement), the issued for the rebate alone and 9 .1 million Fiduciary 1,440 1,51 4 second largest source of revenue, totaled checks combined the rebate with a regular Declarations of estimated tax, total 7,437 7,54 3 $70.1 billion, a rise of $8.0 billion or 13 0 refund . (Further detail on the rebate pro- Individual percent over 1974 . In the two previous gram is provided on page 18 ) 7,437 7,543 years, increases were in excess of 19 Corporation NIA N/ A percent . The increase in 1975 did not equal this previous growth rate mainly because of Partnership s 1,118 1,138 smaller increases in the social security tax Corporations 1,981 2,133 rate and the maximum amount of earnings Other subject to tax . 1,748 2,12 1 Employment tax, total 24,794 24,767 Employers' Form 941 Returns Filed and Refunds issued, 16,960 16,92 5 Individual Income Tax* January-June Employers'Form 942 (household employees) 3 .309 3,161 (Cumulative 000's ; cumulative percentages) Employers' Form 943 (agricultural employees) 457 454 1974 Jan Feb Mar Apr May June Railroad retirement, Forms CT-1, CT-2 13 1 3 Returns Flie d Unemployment insurance. Form 940 4,056 4,204 Volume 3,638 34,669 51,61 0 77,283 79,747 80.672 Estate ta x 212 21 6 Percent 4 .5 43 0 64 .0 95 .8 98.9 100 Gift ta x 253 260 Refunds Issue d Excise tax, tota l 1,342 1,43 0 61,690 62,783 Volume 1,182 18,319 38,019 53,383 Occupational ta x 528 598 0 Percent 1 .9 29 . 2 60 .6 85 .0 98 .3 10 Form 720 (retailers, manufacturers, etc . ) 308 31 0 1975 Alcohol 19 20 Returns Filed Tobacc o 5 Volume 3,828 37,266 54,252 80,049 82,370 83,278 5 Highway use ta x 378 409 Percent 4 .6 44 . 7 65 .1 96 .1 98 .9 100 Othe r 104 89 Refunds Issue d

Volume 895 21,989 41,494 55,130 63,598 64,730 Revised Consists of 1042, 1040NR and 1040SS-PR Does not include Office of International Oper Percent 1 .4 34. 0 64 .1 852 98 .3 100 . returns . ati .ns returns 1040NR, 1040SS-PR and 1042, whit e 'he total in column 2, table 7 in Appendix *Refunds processed by National Computer Disbursing Centers . Includes only forms 1040 and does include these returns .. Center and scheduled for issuance by Regional 1040A. Excludes Tax Rebates/Refunds. 14 1 5

Gross Internal Revenue Collection s Net Internal Revenue Collection s (Dollars in thousands . For details see table 1 in Appendix ) (including tax rebates) through June 30, 1975 (Dollars in thousands) Increase or Decrease Percent of Net Collections 1975 Per- Source Collections 1974 1975 Amount cent Per- cent Grand total 1 100.0 268,952.264 293,UZ?26 24,870,472 9. 2 Source Gros of Income taxes, tota l Me 184,648,094 2OZ146,097 17,498,003 9. 6 Collection: Refunds 1-14 Amount Total Grand tota l Corporation 15.6 41,744,4" 45,746,660 4,002,216 9. 6 293,82Z726 39,906,742 253,915,984 100 .0 Indiyidual, total 53.2 142,903,650 3156,399,437 4 13,495.787 9.4 Corporation income taxes 45,746,660 5,125,547 40,621,113 16 .0 by employers 2 41 .6 Withhold 112 .091,799 122,103,137 10,011,338 8.9 Individual income taxes 156,399,437 34,012,221' 122,387,216 48 .2 Other 2 11 .7 30,811,851 34,296,301 3,484,450 11 .3 Employment taxes, tota l 70,140,809 394,522 69,746,287 27. 5 Emplothreent lam, total 23.9 62.093,632 70,1140~81019 8,047,177 1&0 Old-age, survivors, disability Old-age survivors disability and hospital insuranc e and hospital insurance, total 22.8 59,105,066 67,136,584 8,031,51B 13.6 67,136,584 360 .000 66,776,584 26. 3 Federal insurance contributions 21 .7 56,096.856 63,720,164 7,623,308 13.6 Railroad retiremen t 1,616,143 313 1,615,830 0 . 6 Unemployment insuranc self-employment insurance contribution s 1 .2 3,008,210 3,416,420 408.210 13.6 e 1,388,082 34,209 1,353,873 0 . 5 Estate and Unemployment insurance 0.5 1,480,574 1,388,0112 -92,492 -6.2 gift taxes 4 .688,079 76,954 4,611,125 1 .8 Railroad retirement 0.6 1,507,993 1,616,143 108,150 7.2 Excise taxes 16,847,741 297,498 16,550,243 6. 5 Estate and gift tam 1 .6 5 .100,675 4,611111,079 -412,696 -8. 1 1 Excise taxes, tata l 5.7 17,109,653 16,847,741 -2641,112 .-1 .5 Does not include interest paid on refunds . 3 Includes rebates under the 1975 2 For details See tables 5 . 6 . and 19 in tion Act . Tax Reduc- Alcohol 1 .8 5 .358,477 5 .350 .858 -7,619 -0. 1 Appendix . Tobacco 0.8 2 .437,005 2,315,090 -121,915 -5.0 Other 3.1 9 .314,371 9,181,794 -132,577 -1 .4

G I C.11act-a at. dituded to e,clude announts vansie,red to IN esurnates Made by the SeChna,V the T,ww~ owsuant to the werrinners a IS-, p-sions at wc 201(a) of the 'alsecurity ciasarrended . r~iEwmatw-Col~ectwsolindMdual,ncmetw,,Ihhefdam and uryiyoh, dlutabaq a. hospital "ad"ned saiderately fro, old age, su,iwrs disability anal ~raxurxniindwas:a .as "' do"gThe estimates. - tor Me 2 classes of hotrxialotillecodris insurance taxes a, ages am salaries, Sonwhy. ndmdual Incorne I'a asme toxtae0 delyed by subtraOn%the old-age on Inds,xcluai morre tax not winhe, are not rewnw arid oxitalithty,mu, shoutuse firarh the otah ner! totals sadanattly it- and deado,tyunsuronce I... . on .. if- noned . The Tax Dollar aniploymm in- he annount on old-age, sumlors. chsatillIty, I Includes Phaudersual Election Fund anhouning to $27,592,0X Where It Came Fro m am hospital unsunirtce us, odlextblils - is leasedl on 1.1w.. Phistaitintiat Ewfion Fund erhousi 1. S31,656.525. Fiscal Year 1975 (Net Collections) The Tax Dollar Where It Came From Fiscal Year 1975 (Gross Collections)

Corporation Employment Income Taxes 15.60 1 Taxes 23.90 Excise Taxes 5.70 Estate and G ift Taxes 1 .60 1 6 17

The Pipeline Tax returns received at IRS service centers are systematically processed through a se- ries of steps known as "the pipeline ." Although service center machinery is mod- ern, automated and organized to perform the processing function in the shortest pe- riod of time, many of the operations are performed by people . It is people, as this photo series illustrates, who unload the mail sacks bulging with tax returns, operate the machines that open the envelopes, sort, batch, number, examine and code returns, program information from the returns into computers . and most important of all, certify returns for refunds. These photographs were taken at the IRS service center in Ogden, Utah. Stop 4 Tax returns and accompanying checks are compared . Step 7 IRS computers perform validity checks on tax returns .

Step 2 Envelopes are opened and counted at the rate of 10, 000- 12,000 per hour .

Stop 5 Returns are edited and coded for computer processing .

Stop I Income tax returns are received at Step 8 Refund checks are printed by, the service centers . Treasury Department Disbursing Center .

Step 3 Returns are sorted by type of return,

Stop 6 Tax return information is fed into the computer . 1 8 1 9

Rebate On March 29, 1975, the President signed Program into law the Tax Reduction Act of 1975, P .L. 94-12, which provided for a number of measures designed to reduce taxes for individuals and corporations, including the rebate of a portion of income taxes paid for 1974 to nearly 70 million individual taxpay- ers . Generally . the law authorized a rebate of 10 percent of the individual's 1974 income tax liability, with a minimum rebate of $100 and a maximum of $200. If a taxpayer's 1974 income tax was less than $100, the rebate would equal the amount of tax actually paid . In addition, it the tax- payer's adjusted gross income was be- tween $20,000 and $30,000, the $200 maxi- mum rebate was reduced by one percent of adjusted gross income in excess of $20,000 up to $30,000. Thus, taxpayers in this income bracket received checks for amounts between $100 and $200. Taxpay- ers with adjusted gross income in excess of $30,000 received $100. While the intent of Rebate Check Processing At the Bureau of the Congress was to concentrate the tax Accounts, Washington Disbursing Office, the reductions among lower and middle income woman (rear right) manually reviews numerical taxpayers, these minimum, maximum and sequence of checks, while the man in the phase-down provisions confused many tax- foreground inserts checks for machine payers and prompted a great many inquir- verification prior to insertion in envelopes . ies to the IRS . The rebate was enacted midway in the 1975 filing period and at the peak of returns Rebate Program processing . By planning for the rebate even Amounts and before the President signed the law, how- Applications ever, the Service was able to implement its (through June 30, 1975 ) rebate program in late April and insure that the first of the rebate checks would be Number of rebate credits 65.5 million mailed to taxpayers on May 9, 1975 . The Amount of rebate credits S 8 .2 billion bulk of rebate mailing had been completed when the fiscal year ended June 30. The Average rebate credit $125 .39 table at right provides details of th e Ap lication I of rebate credits : rebate program. ~.Ifiuncied ~-Number 63.8 million Amount $ 8 .0 billion Average $124 .74 Milwaukee Postmaster Emerson Paulson shows Milwaukee . On th is date, May 8, 1975, the Applied to outstanding balance due or Commissioner Alexander the first batch of rebate Commissioner waSvisiting the Milwaukee District temporarily unapplied pending resolution of checks to be delivered to taxpayers i n Office . (Photo Courtesy of taxpayer's account Milwaukee Journal ) Number 3.5 million Amount $ 0 .3 billio n Presidential Datals may not add to totals d,8 to ro,,dim g The IRS processed approximately 81 .7 mil- percent checked this block, thus declining Apoicandm axwed Ind total nibates a-e some rebat. Election lion individual returns between January 1 to designate . pana lly reftnded and partially appied to an otfistancimg dal- d,,"a CarnTaign and June 30, 1975 . Of that total, 19 .8 %datat; pimessed! toy Nationtil Comouter Cemer and million or 24 The total amount crediited to the Fund schadtaed to, ismanoo by H,giortal Disbursing centers to Fun .2 percent had designations for during fiscal year 1975 was $31 .7 million, !Uoinier.. Indi,des S21 .4 m0on whedtileil in Aide 1975 am the Presidential Election Campaign Fund, litued 1 . fit . - Uly 1975 0 J." 1975,$7.9 including $31 .5 million on 1974 returns and b0li-n isbass had = tastaid .ey I compared to 13 .6 percent in the prior year . $0 .2 million from prLor year returns, The A block, indicating the taxpayer's desire not cumulative amount credited to the Fund to designate to the fund . was placed on the (1972, 1973 return for the first time this year and 1974 returns) since the . Of the total check-off was initiated is approximately returns processed, 33 .7 million or 41 .2 $61 .7 million . 20

Mathematical During the year, the IRS checked the turns, errors by taxpayers increased their Verification mathematics on 84.6 million individual re- tax liability by $270 million, an average of Chapter 3 turns . The IRS calculated the tax on 1 .0 approximately $134 per return . The results million returns, manually verified the tax on of this year's computer mathematical verifi- 2 .5 million returns and computer verified the cation program are shown in the table Insuring Compliance accuracy of taxpayers' calculation of tax on below . 81 .1 million returns, As a result of computer verification, 1 .8 million taxpayers had de- In addition to mathematical verification of returns, the Service also used its computers creases in the tax liability shown on their to check the estimated tax credits claimed returns totaling $163 million . an average of on individual returns . This verification deter- Audit of Returns $93 per return . These decreases resulted in mined that taxpayers underclaimed $185 Delinquent Accounts either a larger refund for the taxpayer or a million in estimated credits and overclaimed smaller tax due billing, On 2.0 million re- credits by $402 million . The Appeals Process Tax Fraud Investigation s Individual Income Tax Returns Mathematically Verified By Computer (in Thousands)

1974 1975 Number verified by computer 81,649 81,067 Number of returns on which mathematical errors were detected 5,061 3,77 1 Percent of returns with mathematical error s 6.2 4. 7 Returns with increase : Numbe r 3,073 2,01 4 Amoun t $399,137 $270,09 5 Average amount (dollars ) $ 129 .90 $ 134.1 4 Returns with decrease : Numbe r 1,988 1,75 7 Amoun t $177,890 $163,25 1 Average amount (dollars ) $ 89 .53 $ 92 .9 1

Income During 1975, the IRS received more than Information Documents Sources 428 million information documents from Reported on Magnetic Tape on businesses and organizations required to report payments of wages, interest, and Tax Documents Reporting Magnetic Tape dividends . Nearly 181 million of these Year (Thousands) Entitie s documents were submitted on magnetic tape in 1975 as a result of the Service's 1966 26,248 59 1 program of actively encouraging all 1967 36,492 1,048 organizations which have tape capability or access to computers to report on tape . The 47,686 2,42 6 increase in the number of reporting entities 1969 58,951 2,96 3 to 15,500 reflects a shifting by many organizations from. paper filing to magnetic 1970 68,300 4 .63 7 tape filing . 1971 1 91,449 8,504 1972 115,008 12,75 8 1973 144,533, 13,128 1974 180,946 15,500

I Revised 22 2 3

Audit of The IRS audits tax returns in order to help research purposes, such as updating DIF Number Returns Examined Returns ensure the highest possible degree of vol- formulae on more current taxpayer filing Jhousands ) untary compliance with the tax laws . While and reporting characteristics . Audits con- Fiscal Year 1971 thru 1975 audit activity is the primary method that the ducted under this program must be more IRS uses to encourage voluntary compli- intensive than most in order to develop the Type of Return 1971 1972 1973 1974 2 1975 ance, every return is subject to scrutiny by information required by the program . Revenue Agents IRS employees and computers . When a The computer selection of returns is com- Grand Total 566 593 588 689 81 2 return is received in one of the 10 IRS plemented by manual selection in various service centers, it is first checked manually instances . For example, it the IRS is audit- Income Tax Tota l 429 424 411 506 60 6 for completeness and accuracy and certain ing the return of a partnership (or of one Individua l 289 264 260 306 355 obvious errors such as the claiming of a business partner) the returns of the partners partial exemption or duplicate deductions . (or additional partners) may also be au- Fiduciar y 7 5 5 1 2 Then the service center's computers check dited . Other returns may be manually se- -Corporation 129 135 the accuracy of the taxpayer's arithmetic lected as a result of information from other 122 134 153 (See Mathematical Verification, page 20) enforcement activities, news reports or Exempt Organizations 1 1 18 22 19 2 1 and pick up other errors which may have criminal investigations . The IRS also escaped manual detection, such as the Employee Plans screens returns with adjusted gross income (990P and 4848) NA NA 2 42 6 failure to reduce medical deductions by 3 above certain limits and returns of taxpay- 5 percent of adjusted gross income . ers who submit claims for refund or credit Estate and Gift Ta x 36 35 41 49 50 after filing their returns . Excise & Employment 10 0 133 136 133 156

Returns Selectio n Tax Audittors Grand Total The primary method used by the IRS in Results of Audit Activity 1,080 1,103 1,183 1,419 1,540 selecting returns for audits is a computer The IRS audited 2,465,000 tax returns of all IncomeTax Tota l 1,058 1,073 1,143 1,377 1,486 program of mathematical formulae-the types in 1975, 277,000 more than the Individual Discriminant Function System (DIF)-which 1,057 1,072 1,143 1,376 1,48 3 2,187,864 audited in 1974 . The 1975 total Fiduciary measures the probability of tax error in was more than in any year since 1969, each return . Returns identified by the DIF when 2 543 929 were examined . Of the total Corporation 1 1 2 system as having the highest probability of returns'audi'ted in 1975, 112,550 were ex- error are then reviewed manually, and those amined by service centers, compared to Exempt Organizations - - 1 confirmed as having the highest error po- 80,200 last year. The remainder were ex- Employee Plans tential are selected for audit . Since this, amined in-district offices by either revenue (990P and 4848) NA NA - system was introduced in 1969, the IRS has - agents or tax auditors, Examinations con- Estate and Gift reduced the number of taxpayers contacted ducted by revenue agents under field audit - Tax 4 5 8 10 1 2 whose audit would result in no tax change techniques totaled 812,336 returns, an in- Excise and Employment 1 8 25 31 32 4 2 (all taxes) from a peak of 43 percent in crease of 123,279 returns or 18 percent 1968, to a historic low of 23 percent in over last year, Examinations conducted by Service Center Examination s 1975 . tax auditors under office audit procedures Grand Tota l 80 11 3 For the first time in 1975, the Service began numbered 1,540,466 returns, an increase of Income Tax-Individual using the DIF system for the selection of 121,859 returns . Audit coverage of income, 80 10 5 partnership returns . In 1975 and 1976, a estate and gift returns increased to 2.55 Excise tax 8 Taxpayer Compliance Measurement Pro- percent, compared to 2 .39 percent gram (TCMP) will be conducted on fidu- achieved in 1974 . Total Grand Tota l ciary returns . Filing and reporting charac- The'Service's examination program resulted 1,646 1,696 1,771 2,188 2,465 teristics identified by this program will be in $5 .3 billion of additional tax and penalties Income Tax Total 1,487 1,497 1,554 1,963 2,197 used to determine the feasibility of develop- recommended . While recommendations ex- Individua l ing DIF formulae for fiduciary returns . ceeded $5 billion for the third straight year, 1,346 1,336 1,404 1,762 1,94 3 Returns are also selected for audit through the total was about $600 million below last Fiduciary 7 5 5 1 2 the application of certain criteria during the year, mainly because there were nearly 600 Corporation initial computer screening process which fewer returns with unusually large deficien- 130 136 122 134 155 automatically trigger selection of the return . cies of $100,00 and over . Exempt Organizations 1 1 18 22 20 2 2 Returns may also be chosen for audit under Employee Plans a third computerized selection system, the (990P and 4848) N A NA 2 42 6 5 Taxpayer Compliance Measurement Pro- gram (TCMP), which makes a random se- Estate and Gift Tax 4 1 40 49 59 6 2 lection of returns within income classes for Excise. and Employment 117 158 167 165 20 6

Not Avaiiable~ombined with individual *Less than 500 2 1974 Revised Data 24 25

During 1975, assessments totaled a record More than half of these returns involved .5 billion, including an all-time high of obviously unallowable items, such as medi- Recommended Addlitional Tax and Penalties S4 (millions ) $3 .8 billion in assessed tax and penalties cal expenses not reduced by the 1 percent Fiscal years and S695 million in interest . In 1974, as- and 3 percent limitations . More than 1971 thru 1975 sessments amounted to $3 .7 billion, of 952,000 returns with unallowable items Type of Retur which $3 .1 billion represented tax and pen- were corrected in 1975, compared to ap- n 1971 1972 1973 19742 1975 alties and $626 million represented interest. proximately 406,000 in 1974. Another major Revenue Agents Examining officers are required to deter- issue verified by service center personnel Grand Total through correspondence with taxpayers this 3,216 . 2 3,177.8 4,79&6 5,649.7 4,811 . 3 mine a taxpayer's correct tax liability--no Income Tax Tota l more, no less . This means that examiners year was that of taxpayers claiming to be 2,653 .3 2,612.6 3,955.4 4,790.0 3,912. 5 heads of households . Approximately Individua l look for indications that taxpayers have returns claiming such status were 718.5 761 .3 858 .4 881 .5 926 . 7 overstated, as well as understated, their tax 209,000 Fiduciary liability, In 1975, Service examinations dis- verified in 1975 . compared to 195,000 last 18 .3 15 .2 15.2 21 . 0 122,399 re- year . Corporatio n closed overassessments on 1,933 .1 1,828 .6 3,068.6 3,888.1 2,931 .9 turns, accounting for refunds of $302 .8 The service centers also conducted corre- Exempt organization s million . spondence examinations of returns se- _ 7 43 13. 2 4 .8 32. 5 lected under district office criteria involving Employee Plans (990P and 4848 ) issues such as charitable contributions or NA NA NA 4 .4 interest payments, which generally can be Estate and Gift Tax 471 Service Center Examinations resolved through correspondence with the .1 432 .2 690 .4 564~3 611 .2 returns in Excise & Employment 91 The IRS service center review program taxpayer. Approximately 112,550 .9 133 . 1 152.7 195.4 287 .6 began in 1972. It is generally limited to the this category were examined during 1975, Tax Auditors verification or resolution of issues.which can an increase of nearly 40 percent over the Grand Total 192 80,200 examined in 1974 . .1 235. 4 269.9 297.3 355. 5 be satisfactorily handled by service center Income Tax Tota l personnel through correspondence with the 181 .9 222.3 241111.6 273 .6 327.0 taxpayer, More than 1,329,000 returns were Individual 179 .5 221 .9 248 .1 273.2 325 .6 checked in service centers in 1975, an 86 Fiduciary percent increase over 1974 . 1 .2 .3 Corporatio n 2 .4 1 .1 Exempt Organizations Employee Plans (990P and 4848) Estate and Gift Tax 6 .3 6.8 9.9 13 .2 14 .4 Excise and Employmen t 3 .9 6.3 11 .4 10 .5 14. 1 Service Center Grand Tota l 62.2 143.7 Income Tax-individua l 62.2 142 .9 Excise Tax Total . 8 Grand Tota l 3,408.3 3,413.1 5,068.4 5,909.2 5,310.5 Income Tax Total 2,835.2 2,834.8 4,203 .9 15,125 .8 4,382. 4 Individual dud .u 9832 1,1o6.5 1,216,9 1,395 .2 Fiduciary 1 18 .4 15.4 15.3 21 .3 Corporation 1 .935 .5 1,828.9 3,068 .8 3,888 .4 2.933. 0 Exempt Organization s 1 .7 4 .3 13 .2 4 .8 32 . 5 Employee Plans (990P and 4848) NA NA - .4 .4 Estate and Gift Tax 477 .4 439 .0 700.3 ~77 5 6256 Excise and Employment James Whitmore, well-known actor, discusses 271h-minute film, which highlights taxpayers' __~7-5 139A 164 .1 205 .9 302.5 IRS audit procedures with Kama Podsadecki, rights in dealings with the IRS . Among the topics Not Available-combined with individual office auditor, in a scene from the IRS film, "Why discussed in the film are audits and appeals, 1974 Revised Data me, Tom Krofik?" Eight other IRS employees, delinquent taxes, taxpayer service and the along with professional talent, appear in the processing and confidentiality of tax returns . 26 2 7

Computer Assisted Audits Coordinated Examination Program Joint Committee Review National Shared Ubrary The Service is keeping pace with the grow- Since larger corporations have complex .The Internal Revenue Code provides that all The Service has established a National automated accounting sys- accounting operations and present complex income, estate and gift tax refunds and Shared Library on the GSA-approved Infor- ing number of credits which exceed tems by expanding the use of computers in tax issues, the Service has increasingly $100,000 must be net Time-Sharing Computer System which audits . Both generalized computer pro- turned to the team audit or coordinated reported to the Joint Committee on Internal is utilized as a technical and administrative grams and specifically developed Programs examination approach when reviewing their Revenue Taxation . During 1975, 1,356 too[ in performing the complex work in- accounts . This approach combines the cases involving overassessments of $969 volved in many examinations . The initial are used to retrieve and analyze data million were reported to the Joint Commit- essential to the examination . They permit an skills of the accountant-revenue agent with computer program placed in this library will automated "eye-balling" of massive data those of economists, computer audit spe- tee, as compared with 1,671 and $1,1 billion recompute the highly complex Form 11 20L files with the printout of only those items Of cialists, international tax examiners, engi- in 1974 . Insurance Company Return to reflect audit possible audit interest . Both taxpayers and neering agents and employee plans exam- adjustments and generate a marginal tax the IRS save time and expense since iners . table for each return, This shared system Tax Shelter Program compute r-assisted audits can be done in a At the end of 1975. the 1, 176 large cases avoids duplication of storage charges, fraction of the time needed to do the same identified by the National Office averaged In 1974, the IRS established a nationwide since authorized users in IRS districts and job manually . 2.6 open years . This is the third consecu- tax shelter examination program coordi- regions do not have to store programs in a separately maintained library . It also facili- These audits are done by computer audit tive year in which the average of open nated by the National Office, Due to the years in the large case program has been multi-district involvement of promoters and tates standardized and consistent program specialists, experienced revenue agents changes or updates . who have received intensive training in less than three. investors, these examinations were con- computer hardware, programming lan- The IRS, during 1975, expanded its prac- ducted under the industry-wide audit con- guages and audit techniques They work tice of conducting industry-wide audits in- cept . The use of this approach insures a with automated accounting systems . During volving the contemporaneous examination greater degree of consistency and uniform- Computer Production of 1975, the number of these specialists was of all major companies in a given industry . ity in the Service's overall treatment of the Report on Audit Change s e tax aspects of shelter programs . increased from 84 to 104, including, for th The IRS completed a study in 1975 first time, two women revenue agents . So far, these audits have not only saved During 1975, industry-wide examinations of on the time for the Service and the taxpayers, but type of report writing equipment necessary The Program Audit Library (PAL), a system have also resulted in greater uniformity Of tax shelters were conducted ty field per- to Produce Form 1902-E, The Report of of generalized computer programs devel- tax treatment among the industries exam- sonnel analyzing the entire enterprise first Individual income Tax Audit Changes, for the Service and designed specifi- to determine whether participants, barring audit operations at service centers and oped by ined . Five industries are currently being unexpected problems, can reasonably be cally for tax audits, was updated and audited by this technique . district offices . It was found that existing expanded in 1975 In addition, the IRS has expected to earn a profit appropriate to the service center computer systems could developed computer programs to perform investment and degree of risk involved . The best fulfill Form 1902-E requirements for the statistical sampling techniques which will business is then studied for the possibility service center audit divisions since this soon become part of the PAL System of improper or excess allocation of deduc- type of equipment was on-site and affords tions and also to make certain that individ- a low user cost . A computer program was' uai items causing operating losses are implemented at all service centers to gen- properly claimed deductions , erate both the basic Form 1902-E and its Based on experience acquired in 1975, the accompanying Form 3547, Explanation of IRS will continue to identify and examine Adjustments, consisting of standard expla- other abusive tax shelter areas using indus- nations of adjustments . However, the study try-wide audit methods when appropriate . also showed that on-site equipment was I Possible tax shelter abuses by investors in also needed in district offices to service the oil, real estate, cattle, equipment leasing office audit workload. As a result, efforts and motion picture industries are being are presently underway to replace older studied , machines in district audit operations with The large size of the partnerships involved more modern and efficient report writing equipment . in this program (often thousands of individ- ual partners) presented a major clerical problem in controlling large numbers of related returns and in processing subse- quent audit adjustments to individual part- ners . The IRS has, when possible, auto- mated the manual workflow involved in the audit of large scale partnerships and now has the capacity for computer-gene rated audit control documents and audit adjust- ment reports associated with these exami- nations .

Computer audit specialist Leo Terr checks final output of hardcopy which will :>ecorne part of his workpapers . 2 8 29

Delinquent The Service makes every reasonable effort ued this year. Business taxpayers identified The Service believes that another answer to as posing significant risks of becoming tax ment, for the greater convenience of tax- Accounts to collect taxes due, starting with notices to this abuse and to the general problem of payers and the IRS ; taxpayers requesting payment and then delinquents were contacted by district col- 2) expanded use of taxpayers using the government's money payroll deduction agreements ; 3) reduction establishing delinquent accounts for as- lection personnel in an effort to help the rather than borrowing funds through legiti- taxpayers eliminate the cause of the poten- mate means is Public Law of the amount of information taxpayers must signment to enforcement personne l 93-625 . which furnish on financial statements: 4) routinely tial delinquency and meet all tax obhga- raised to 9 percent the interest rate on tax In 1975, IRS district offices closed over 2 .9 tions . delinquencies extending installment arrangements to first- million delinquent accounts receivable . This rate will be adjusted time delinquent individual income taxpayers periodically to reflect changes in the pre- who are otherwise in full compliance with the cases, including approximately 376,000 vailing prime rate charged cases in which the taxpayer, when notified by major banks . tax laws, 5) the substitution of a telephone of a delinquency, contacted the IRS field Withholding Tax Laws The IRS also is vigorously pursuing civil contact for one of four written notices to ex- offices to resolve the matter ("notice" Strictly Enforced and criminal sanctions against noncompliant plain the seriousness of tax delinquency and cases) . The remaining 2 .5 million delinquent taxpayers . Public Law 85-321 provides for a to help the taxpayer avoid drastic enforce- accounts required field contact by district In recent years, an increasing number of $5,000 fine and/or a year in prison for failure ment action, such as levy'or seizure: 6) great- employees . Approximately 58 percent of business taxpayers have failed to deposit to deposit withheld taxes Properly . During er supervisory review before the property of these delinquent accounts involved busi- and pay over the money they withhold from 1975, an intensified prqgram resulted in 127 a delinquent taxpayer is seized ; 7) a review of ness taxpayers . their employees' salaries . Instead, these convictions and guilty pleas in such cases . the legislative and procedural exemptions trust funds have been improperly used as and exclusions from our levy.authority . More than $2 .8 billion in delinquent taxes working capital or otherwise diverted . The was collected during the year, an increase Service uses a number of approaches with Collection initiatives Also, the procedure for administering Public of $292 million over 1974 . District personnel Law 85-321 has been strengthened and these employers to enforce compliance with The Service also undertook, during 1975, a also crbsed over 1 .2 million delinquent the law regarding withholding requirements . will be expanded to encompass a larger return investigations, including 168,000 thorough reappraisal of delinquent tax col- number of chronic trust fund delinquents. cases in "notice" status. In addition, Under the Federal Tax Deposit Alert pro- lection practices. The goal was to make the Uniform criteria for selecting, investigating 388,000 contacts were made by district gram, the Service's data processing system collection process more clearly understood and preparing trust fund prosecution cases personnel in the returns compliance pro- identifies employers who are not making by the taxpaying public and to ensure that have been established to better ensure qual- the tax laws are administered in a fair, gram, which detects the non-filing of tax appropriate deposits . Before the return is ity referrals to the Department of Justice . As returns . These efforts secured 943,000 de- due, revenue officers call on .these em- impartial manner . To accomplish this goal, part of the revised "Trust Fund Compliance linquent returns involving nearly $548 million ployers to eam why they have not com- a major program, "The Collection Initia- Program," noncomplying taxpayers who are in additional taxes , plied with the deposit requirements . tives ." was implemented and its changes not the subject of a criminal prosecution are now showing results . The Service has long recognized that pre- To accelerate the billing of delinquent em- recommendation, as an alternative . will be venting a delinquency is at least as impor- ployers, delinquent accounts covering with- Some of the changes being considered or required under Trees . Reg . 601 1(a)-5 to file tant as collecting a delinquent account . The held tax are taken out of the ordinary already implemented include : 1) the ac- returns and pay withheld employment taxes delinquency prevention program, which processing cycle and immediately assigned ceptance of postdated checks to cover the monthly instead of quarterly , was given new emphasis in 1974, contin- - to the district offices . terms of an installment-payment agree .

Gross tax, Penalties and interest resulting from direct enforcement (In thousands of dollars) Ite m 1974 197 5 Additional tax, penalties, and Interest ass-eased, tota l 4,208,948, 5,203,155 From examination of tax returns, tota l 3,724,121 4,526,34 7 income tax, tota l 3,127,166 3,839,758 Corporatio n 2,142,340 2,596,803 Individual and fiduciary 984,826 1,242,955 Estate and gift tax 458,884 482,250 Employment tax (including withheld income tax) 82,970 131 .082 Excise tax 55,102 73,25 7 From delinquent returns secured, tota l 484,827 676,80 8 By district collection division s 417,735 547,568 By Restaurant owners David Hedison and Pat Rnley, taxpayer assistance available from IRS offices, district audit divisio n 67,092 129,24 0 what a business should do it tax deadlines cannot stars of new IRS film, "Hey, We're in Business," mix Delinquent taxes Collected, 'total 2,527,845 business record keeping, taxes, and a late snack be met, and withholding tax responsibilities relat- 24819,752 shortly after opening their restaurant in this scene ing to employees . The film can be borrowed free r Revised from the film. Among the areas covered by the film from the IRS by contacting any district office. are the necessity of proper recorckeeping, free 30 3 1

MRS In a majority of cases, the taxpayers and district or regional conferees reach a mu- District Conference Settlements Delinquent accounts are controlled by the tually acceptable basis for resolving their Integrated Data Retrieval System (IDRS), tax disputes . Consequently, very few cases Since April 1, 1974, district conference which automatically issues and controls go to trial . In the past 10 years, 97 percent staffs have had the authority, where the case assignments, monitors index files, of all disputed cases were closed without amount of tax in dispute was $2.500 or computes interest and penalties on ac- trial . District conference staffs reached less . to settle cases by taking into account counts, allows direct input of payments on agreement with the taxpayer in about 75 the haz ards of litigation, including the accounts . issues certain correspondence percent of the cases considered . In 1975, chance that' the SeNice might lose the case if and forms, and provides necessary man- the appeals function disposed of 54,945 it were litigated . Previously, only appellate agement reports . cases by agreement ; the Tax Court tried conferees had this seftlement authority, 967 cases ; and the United States District which meant that many taxpayers had to take The Administrative Appeal s Courts and Court of Claims tried 376 cases . their case to the regional appellate office in order to resolve unclearlssues , Appeals The Internal Revenue Service encourages Thus in disputed tax matters, the adminis- Process the resolution of tax disputes through an trative appeals system continues to serve Since receiving this settlement authority, administrative appeals system rather than taxpayers well . The system provides for an district conference staffs have significantly through litigation . Taxpayers who disagree expeditious, independent, and impartial re- increased the percentage of agreed cases . with a proposed change to their tax liability view of tax cases, and one measure of its About 25 percent of the cases where the are entitled to a prompt, independent re- success is its ability to resolve the great new settlement authority could be exercised view of their case, The appeals system is majority of tax disputes efficiently and with- to resolve doubtful issues have been set- designed to minimize inconvenience, ex- out litigation . tled . The results have been favorable to pense, and delay to the taxpayer in dispos- taxpayers in terms of time, convenience ing of contested tax cases . and expense as well as to the IRS in terms Appellate Workload of reducing the number of cases going to Within the system, there are two levels of the regional appellate office or to the Small : the district conference staff in the appeal The cases considered in the appeals proc- Case Division of the United States Tax audit division of the district director's office ess cover a wide range of issues from the Court . and the appellate division in the regional most elementary to the most complex . They commissioner's office, Each level of appeal involve additional taxes or claims for refund is independent of the other, and each has ranging from smail amounts to millions of different authority and jurisdiction, Their dollars, including individual and corporation Other Appeal Option s common and principal objective is the early income tax, estate tax, gift tax, excise tax, It a tax dispute cannot be resolved a[ either disposition of disputed cases with a fair employment tax, and offers in compromise . and impartial application of the law. For the the district or the regional level, the tax- Deficiency cases can also be considered payer is advised of his or her remaining initial appeal conference, a taxpayer may before a petition is filed in the Tax Court appeal rights choose either the district conference staff or . Generally. the taxpayer may (nondocketed cases) and after the petition petition the United States Tax Court . When the regional appellate staff . Opportunities has been filed (docketed cases) . Nondock- 58 district the disputed tax does not exceed $1,500, a for such a hearing are offered at eted cases make up about 62 percent of simplified procedure is available under the offices and 36 regional offices throughout the appellate workload. In 1975, 75 percent the country, Conferences are also arranged Tax Court's Small Case Rules . Except in of the nondocketed cases closed by appel- unusual circumstances . the timely filing of a as needed at other IRS locations by circuit- late offices were closed by agreement with riding conferees at places and times con- petition with the Tax Court prevents the the taxpayer. The remaining 38 percent of assessment and collection venient to the taxpayer . of the tax until the appellate workload consists of dock- the court has made its decision . Even if a Proceedings are informal in both of these eted cases in which settlement negotiations Petition is filed with the Tax Court and the offices. Taxpayers may represent them- continue in appellate offices after the filing case is docketed for trial, the case may be selves or be represented by an attorney, of the petition . In 1975 approximately 75 settled with the regional appellate office at accountant, Or any other advisor enrolled to percent of the docketed cases completed any time before the trial begins . the disputed tax by appellate offices were closed by agree- practice before the IRS . If If the taxpayer does not want to litigate a liability is $2 .500 or less the taxpayer may ment with the taxpayer . obtain a district conference and a subse- case in the Tax Court, he or she may pay quent regional conference without filing a the tax deficiency and file a claim for refund written protest . At the conference, taxpay- within two years from the date of payment . ers are given the opportunity to present The same administrative appeals are then available to the taxpayer . If the claim is their views and discuss the merits of the denied by issues. It agreement cannot be reached the IRS, or if the IRS takes no during the district conference, the taxpayer action within six months, the taxpayer may is advised of his or her further appeal rights file suit against the Government for refund in either a United States District Court or and may then request a regional appellate the Court of Claims . office conference . 32 33

Cases Prosecuted s1ganized Crime and A Seattle racketeer was sentenced to six Tax Fraud The Intelligence Division is responsible for ke Force Activitiles; the enforcement of the criminal provisions Tax fraud is not restricted to any particular months in prison for violations of the tax Investigations of the tax laws. Special agents investigate The IRS cooperates in the Federal govern- laws covering withheld income and social occupational or social group but reaches security taxes evasion of income, estate, gift and excise across a wide spectrum of industries and ment's fight against organized crime by . His defense that he w*as taxes, failure to file returns, failure to remit occupations . The following examples illus- participating in the Federal Organized Crime merely making an "unauthorized loan" from trust fund taxes (withheld income and social trate only a few successful prosecutions and Strike Forces Program . Located in 17 the government was not found acceptable security taxes) the filing of false withholding resulting from the Service's vigorous and major cities, these units are headed by Strike by the trial judge . exemption statements and false claims for balanced program of investigating tax Force attorneys from the Justice Department . refunds and the preparation of false returns fraud : The objective of this program is to coordinate for others . When evidence of tax evasion or the combined forces of Federal law enforce- Narcotics Trafficker tax fraud is idenlified, the Intelligence Divi- A San Francisco Bay area resident was ment agencies against the criminal element s sion investigates and recommends prose- found guilty of income tax evasion and in our society . The IRS is responsible for en- Since 1971, the IRS has cooperated with cution when warranted , sentenced to five years in prison . The suring that income from illegal activities is other Federal, state and local law enforce- investigation revealed that he had failed to correctly reported and taxed and for detect- Special projects are sometimes carried out to ment agencies in a concerted effort against report $128.000 in Irish Sweepstakes win- ing criminal violations of the tax laws . During narcotics traffickers . The IRS contribution to determine the extent of noncompliance in a nings, which he claimed in Dublin and 1975, given geographical arealor occupational the IRS contributed 513 man-years of this effort involves the identification and deposited in a foreign bank account . direct investigative and examination time to investigation of middle and upper echelon field, if a pattern of noncompliance is de- the Strike Force effort tected, or to increase the coordination of in- Two trials and eight guilty pleas resulted in . traffickers and financiers who violate the the conviction of 10 Seattle residents who Internal Revenue laws . vestigations covering an already identified A total of 97 organized crime members and had filed false claims for refunds . The Consistent with the IRS policy to achieve area of noncompliance. One successful pro_ charges emanated from the filing of 13 their associates were convicted or pleaded fact dealing with the appraisers, inspectors guilty to tax charges during the year and maximum compliance with the revenue fraudulent income tax returns using false 650 laws, the Service will continue to identify and contractors working with the Federal . The individuals received sen- prosecution cases were pending when Housing Authority was substantially com- Forms W-2 the year ended . and investigate significant tax violations by tences totaling 14 years . traffickers and financiers pleted this yeat . Since August 1972. when Since the inception . this investigation began, there*have been 66 A Philadelphia auto dealer and former city of the organized crime program in 1966, 539 organized crime During 1975, the IRS completed 398 crimi- prosecution recommendations and the addi- official was fined $7,500 and placed on nal tax investigations, obtained probation for five years for failing to report members and associates have been con- 81 indict- tional tax and penalties proposed exceed victed or have pleaded guilty to various tax ments and achieved 83 convictions of $13 million dollars . Other recent and signifi- money embezzled from his business . Addi- charges. traffickers and financiers . The IRS collected cant intelligence investigations have focused tional tax and penalties proposed by the more than $3,8 The following are examples of Organized million in narcotic trafficker on foreign bank ahd brokerage accounts . IRS were about $679,000 . assessments during 1975 and had property nuclear power plant construction, corruption Crime and Strike Force activities : valued at $4 A North Carolina school teacher was con- During 1975, .5 million under levy and seizure of public officials through payoffs and victed of preparing false tax returns for probes were conducted in at the end of the year . kickbacks, and tax return preparation. many areas of illegal activities by the var- others . The judge ordered the school The following are examples of the.results of teacher to deposit $5,000 in a trust fund to ious Strike Forces to identify individuals who may have violated the tax laws . One of IRS narcotics traffickers investigations : During 1975, the Intelligence Division com- assist his clients who were injured by his A convicted Hawaiian crime figure re- 8,731 investigations and recom- fraudulent acts . the most important areas in terms of total pleted monetary value involves the fencing of ceived a 24-year sentence, the most severe mended prosecution of 2,760 taxpayers . penalty thus far handed down Grand juries indicted or courts filed infor- A Texas insurance agent was sentenced to stolen goods, ranging from small items, by a Federal three years in prison for income tax eva- such as jewelry and gold, to large, bulky oil court for tax evasion . mations on 1,495 taxpayers . Prosecution He was convicted of failing to report A Miami narcotics trafficker was con- 1,219 cases . sion drilling equipment . Other areas of prime was successfully completed in more* than $130,000 received from a fraud- concern to the Strike Forces have been victed of tax evasion for the years 1969 and In 1,046 cases taxpayers entered guilty ulent scheme involving a lite insurance 1970 and was sentenced to 3 years in cases taxpayers were union racketeering and corruption and the pleas, and in 173 company . investment of income from illegal activities prison . Additional tax and penalty figures convicted after trial, Acquittals and dismiss_ proposed Three Wheeling, Illinois residents received in legitimate businesses and real estate by the IRS exceeded $38.000 . als totaled 83 and 168, respectively . Of the A Los Angeles narcotics wholesaler re- 1,202 taxpayers sentenced during 1975, fines ranging from $3,000 to $25,000 and developments . A ceived prison sentences of six years for tax 4B5 or 40 .3 percent received jail sentences up to four years in prison for tailing to major Atlanta racketeer was convicted of tax evasion for the years 1967 through evasion and two years for his part in a compared with 42 percent last year . report income derived from payoffs extorted conspiracy to violate the tax law from building contractors . 1969 and was fined $15,000 and sentenced . to five years in prison . A Georgia veterinarian was sentenced to In Los Angeles, an ex-IRS revenue agent three years in prison after pleading guilty to and his business associate, an organized income tax evasion for the year 1967 . The crime figure, were sentenced to four years net worth method was used to determine and one year, respectively, upon conviction his correct income for the years 1966 of income tax evasion for 1970 . Total civil through 1969 . Additional civil tax and pen- lax and penalties on the unreported income alties exceeded $1 million . from the sale of bootleg eight-track tapes was nearly $1 .4 million . 34

Executive Order Umlts Tax Inforynation Disclosure Chapter 4 During 1975, attention was focused on the Technical Activitie s disclosure of tax information . While regula- tions issued by the Treasury Department and approved by the President pursuant to section 6103 of the Internal Revenue Code place strict limitations upon agency and public access to tax return information, Tax Rulings there were no explicit legislative restrictions and Technical Advice upon disclosure to the White House . On September 20, 1974, President Ford signed Internal Revenue Bulletin an Executive Order setting forth legally Accounting Methods Rulings binding procedures whereby the President must personally sign all requests for copies or inspection of tax returns and must desig- nate in writing the member of his staff who is authorized to see specifically identified returns on his behalf . To insure that income tax return information is not disclosed improperly, present law provides for penalties of up to $1,000 or imprisonment for one year, or both, for any unauthorized disclosures . The Service is constantly on guard against any unauthor- ized use of tax return information . 36 3 7

I

The Service's tax ruling program consists of Test Program for Tax Credit for Tax Rulings Superintendent of Documents, U .S, Govern- and letter rulings and published Revenue Rul- Processing Ruling Requests Purchase of Residence ings. ment Printing Office, Washington, D .C . Technical On July 1, 1974, the Service initiated a test Under the Tax Reduction Act of 1975, new 20402, on a single copy or subscription A letter ruling is a written statement issued program in the Reorganization and Excise Code Section 44 provides for a tax credit to basis , Advice the National Office inter- to a taxpayer by Tax Branches, Office of the Assistant Com- taxpayers purchasing a new residence un- During 1975, preting and applying the tax laws to a missioner (Technical), to change the proc- items in the Bulletin included der certain conditions . Since this provision 576 Revenue Rulings, 66 Revenue Proce- specific set of facts . Such a ruling provides essing of ruling requests . Under the test had no counterpart in previous tax law, the advice concerning the tax effects of a program, tax law specialists would, within dures, 27 Public Laws relating to Internal IRS promptly issued a Technical Information Revenue matters and 31 committee reports, proposed transaction so that the taxpayer seven work days after receipt of the re- Release summarizing the provisions and may structure the transaction to comply 3 Executive Orders, 42 Treasury Decisions quest, contact the taxpayer or the tax- the Service's interpretation of Section 44 . with the tax laws, thus resolving issues in payer's representative to discuss informally containing new or amended regulations, 19 From April to June, the National Office Delegation Orders . 3 Treasury Department advance and avoiding future controversy . the procedural and substantive issues in- Technical organization received over 150 Letter rulings are not precedents and may volved in the ruling request . Orders, 9 court decisions, 33 Notices of requests for written information in addition Suspension and Disbarment from Practice not be relied upon by other taxpayers . The test program, initially conducted for a to 10-30 telephone calls per day. th a before the Service . and 181 Announce- A Revenue Ruling is an interpretation of six-month period and later extended to ments of general interest. tax laws issued by the National Office and June 30, 1975, proved to be feasible in the published in the Internal Revenue Bulletin two branches and was very favorably re- The Bulletin Index-Digest System, revised for the information and guidance of taxpay- ceived by taxpayers . A report urging con- Sick Pay Exclusion Clarified as of December 31, 1974, provides a rapid ers, practitioners and IRS personnel . Most tinuation of the program was received from Prior to April 1974, the IRS took the position and comprehensive means of researching Revenue Rulings are based on letter rulings the American Bar Association . that the sick pay exclusion under Section material published in the Internal Revenue Bulletin after 1952 which have the potential of setting prece- 105(d) of the Internal Revenue Code was . The major part of the dents or have such broad applicability that On April 7, 1975, the Service announced in System consists of digests of BdIletin items Rev. Proc . 75-23 that the test program had applicable to disability Pension payments general guidance should be offered to only until the employee reached optional arranged under headings that facilitate a people in similar situations . been extended to June 30, 1976, and topical approach to a search for items on a expanded to include (with only a few ex- retirement age rather than mandatory retire- Technical advice is counsel or guidance as ment age . Optional retirement age was specific issue, With the aid of finding lists, ceptions) ruling requests received by all the the researcher can locate items by Code to the interpretation and proper application ruling branches in Technical . Under the deemed to be the earliest age indicated in section or number . * of the tax laws to a specific set of facts, It is expanded test program, the taxpayer or the the pension plan at which the taxpayer furnished by the National Office at the representative will be contacted within fif- could retire without the am ployer's consent request of a district office in connection teen work days after receipt of the ruling and still receive retirement benefits based with the audit of a taxpayer's return or claim request and informed of a tax law special- on service up to retirement computed at the for refund or credit . Frequently, the district ist's tentative conclusions concerning the full interest rate in the plan . After a number director's request is made in response to ruling request . of adverse court decisions, the IRS an- Revenue Rulings and Revenue the suggestion of the taxpayer that techni- nounced in Technical Information Release Procedures Published in 1975 cal advice be sought, 1283 . on April 9, 1974, that taxpayers retired on disability prior to the mandatory Type Number retirement age could apply the sick pay Administrative Requests for Tax Rulings and Technical Advice (Closings) 197S) exclusion to their disability payments . 23 During 1975, the Service received over 150 Employment Taxes 32 Taxpayers' Field requests for rulings and information on Subjec t Total Requests Requests Estate and Gift Taxes 3 0 specific plans that included the sick pay Tota l 24,236 23,596 64 0 exclusion . Tax Regulations implementing Excise Taxes 70 Administrative Provisions 42 1 2 the new procedures and superseding prior Exempt Organizations 50 30 regulations were published in the Federal Changes in Accounting Methods 4,987 4,987 Register on April 14, 1975. Income Taxes 403 Changes in Accounting Periods 9,880 9,88 0 Employee Plans 28 internal The weekly Internal Revenue Bulletin is the Earnings and Profits Determinations 719 71 9 Revenue authoritative publication of the Commis- Tax Conventions 6 Employment and Self-Employment Taxe s 556 490 66 Bulletin sioner for announcing official rulings and Total ZE procedures of the Service and for publish- Engineering Questions 240 163 77 ing Treasury Decisions, Executive Orders, Estate and Gift Taxe s 506 429 7 7 tax conventions, legislation, court decisions, and other items of general interest . Bulletin Excise Taxe s 310 229 8 1 contents of a permanent nature are consoli- Individual Income Tax Matters 2,691 2,574 11 7 dated semiannually into Cumulative Bulle- tins . Copies of the weekly and semiannual Corporation Tax Matters 4,305 4,095 210 issues are distributed within the Service and are made available to the public by the 3 8

Accounting During 1975, a sudden increase was expe- Methods rienced in requests for rulings regarding Chapter 5 Rulings accounting methods. The increase oc- curred principally in two areas . Employee Plans and First, many taxpayers requested permission Exempt Organization s to adopt or readopt the last-in first-out (LIFO) method of inventorying their goods . The LIFO method softens the impact of inflationary trends on prices paid for goods and, in effect, reduces or defers taxpayers' Employee Plans current profits and taxes . The increase in Exempt Organizations requests for permission to adopt the LIFO Actuarial Matters method is expected to continue until the present inflationary spiral levels off or re- verses . Second, there were increases in the num- ber of requests by manufacturers to change to the full absorption method for inventory valuation . This activity was p6marily a result of the promulgation in 1973 of section 1 .471-11 of the Income Tax Regulations, which provided a transition period for man- ufacturers to change to the full absorption method for inventory valuation . 40 4 1

i

Employee To administer the Employee Retirement In- In 1975, the Service devoted an average of Exempt During 1975, the Service received 42,411 Three Revenue Rulings and a Revenue Plans and come Security Act of 1974 (ERISA), the IRS 555 field professional positions to carrying Organizations applications and reapplications from orga- Procedure were published covering the tax Exempt established on December 2, 1974 an Office out its regulatory responsibility in the em- nizations seeking a determination of their exempt status of public interest law firms of Employee Plans and Exempt Organiza- ployee benefit plans area , tax exempt status or seeking a determina- and the acceptance of legal fees by such Organization s tions (EP/EO) headed by an Assistant Com- issuing ad- tion of the effect of organizational or opera- firms . statute . The This responsibility is met by missioner, the first Created by vance determination letters regarding the tional change on their status . The Service purpose of ERISA is not to raise revenue, qualification of pension, profit-sharing and issued 34,203 determinations and ruling but rather to protect the retirement income letters other employee benefit plans and by con- . In addition, 368 technical advice Actuarial Matters security of some 30 million American work- ducting an examination program to deter- memoranda were issued . The Service de- ers . It also required major changes in the mine whether plans continue to quality in voted an averaqe of 495 field professional In 1975, the Service devoted 17 average private pension field and had an impact operation and to verity the appropriateness positions to the examination of the returns positions to reviewing actuarial determina- comparable to the initial Social Security Act of deductions for plan contributions . The of 22,168 exempt organizations. tions, interpreting and clarifying provisions ERISA was the most significant of 1935 . number of determination letters issued with Also, 1 regulation, 50 revenue rulings, 5 under ERISA, and overseeing the enroll- change in the Federal taxing provisions respect to corporate pension and profit- ment of actuaries to practice before the since the Tax Reform Act of 1969 . delegation orders, 8 forms, 4 news releases sharing plans during 1975 was 70,818, a and 2 publications were issued in 1975. Internal Revenue Service . The new office is responsible for carrying decrease of 17 .7 percent from 1974 . The Question and answer sheets were also The Joint Board for the Enrollment of Actu- out regulatory responsibilities assigned to decrease is attributed to the passage of prepared for taxpayer service use on ex- aries developed final regulations for enroll- the Service with respect to employee bene- ERISA and the fkt that the IRS was in the empt organizations . ment which provide for examinations of fit plans as well as to tax exempt organiza- process of developing regulations under applicants in all 58 Districts in a manner tions . In the National Office, the new struc- the new law . In 1975, the Service met its commitment to the Congress to examine all private founda- similar to the examination for enrollment to ture consists of Employee Plans, Exempt Preparations have been made for a case practice before the Internal Revenue Serv- Organizations, and Actuarial Divisions, tions within a 5-year audit cycle which inventory control and management informa- ended December 31, 1974 , ice . Enrollment on the basis of professional achieved by a transfer of functions from the tion reports system with computer terminals standing and experience is also provided . Audit and Technical organizations . EP/EO in all key districts and certain associate A Taxpayer Compliance Measurement Pro- field staff are located primarily in 7 regional gram (TCMP) covering the examination of Publication 861, Annuity Factors for Lump- districts . This will enable IRS to control private foundations Sum Distribution, was issued in 1975 . offices and 19 key districts, and local applications for approval of'plans and plan . public charities And service is provided in numerous other of- amendments . social welfare organizations was initiated in fices . 1975 . The program is designed to identify patterns and characteristics of compliance and noncompliance of the exempt organi- Revenue Rulings and Revenue Employee Regulations have been developed to ad- zations being studied . Plans minister employee plans in accordance with Procedures Published In 1975 I the new law . Major emphasis has been The number of active entities recorded on placed on those regulations most urgently the Exempt Organizations Master File Type Numbe r needed by taxpayers . (EOMF) increased from 673,000 in 1974 to Exempt Organizations 50 To insure that taxpayers receive consistent 692,000 in 1975 . information on rulings and are not required As of July 1, 1975, the EOMF was rede- Employee Plans 28 to make duplicate reports, the IRS estab- signed to include additional data from re- Total 78 lished liaison with the Department of Labor turns to provide information to the Con- and the Pension Benefit Guaranty Corpora- gress . the charitable community and the tion through a policy committee, an ERISA Service . coordination board, and a joint interagency A revised Cumulative Ust (Publication 78) regulations drafting group. Requests for Tax Rulings and of charitable organizations described in Technical Advice (Closings), 1975 From September 2, 1974 to the end of FY Section 170(c) of the Internal Revenue 1975, 12 regulations, 10 revenue rulings, 7 Code was published in 1975 . This publica- revenue procedures, 6 delegation orders, tion, now issued annually with Cumulative Taxpay- Field 22 technical information releases, 12 forms, Quarterly Supplements, identifies those or- eirs' Re- Re- 6 news releases and 1 publication were ganizations with outstanding ruling or deter- Subject Total quest quests issued in the employee plans area . Fact mination letters holding that contributions to Total 6935 6024 91 1 them are deductible . sheets on the most common questions and Actuarial Matters 1359 1280 79 answers were also developed for taxpayer A proposed Revenue Procedure concerning assistance personnel . guidelines and recordkeeping requirements Exempt The Employee Retirement Income Security for private schools was published in the Organizations 3762 3386 37 6 Act requires the conformance of all new Federal Register for public comment . The Employee Plans 1814 1358 456 pension benefit plans, approximately public responses have been evaluated and 500,000 existing corporate plans, and an will be incorporated into the final Revenue estimated 400,000 existing self-employed Procedure, A Revenue Ruling concerning plans. the IRS position on church-related schools practicing racial or ethnic discrimination I was also announced .

_J 42

Chapter 6 International Programs

Tax Administration Abroad Technical Assistance I to Foreign Countries

T" 44 4 5

Tax The Service maintains a system of perma- To increase the foreign language profi- Together with other IRS personnel, these neously under the new rules, and in resolv- Administration nent foreign posts to help coordinate its ciency of RSRs, training facilities of the specialty trained representatives gave infor- ing accounts between the two jurisdictions . domestic and foreign tax programs Reve- State Department are used . In addition, the Abroad mation and guidance to approximately An active on-site audit program was con . nue Service Representatives (RSRs) at 010 maintains its own language laboratory, 93,000 taxpayers overseas during the first these stations are involved in compliance which in 1975 offered courses in conversa- ducted to determine the extent of compli- six months of 1975, an all-time record in ance in the employment tax area and taxpayer assistance activities and tional French and German. An expanded number of taxpayers assisted . In addition, by em- maintain cooperative contacts with foreign program is under development to provide ployers in all U .S . possessions . This pro- several days of tax instruction were pro- ram has resulted in increased taxpayer tax agencies . Foreign operations of the IRS in-housing training in Spanish and Italian as vided to members of the Armed Services at I are the responsibility of the Office of Inter- well as for personnel who are sent abroad on Qawareness of the filing requirements and foreign bases, who were then able to help improved compliance national Operations (010), temporary assignments . thousands of overseas military personnel . The five new 010 posts authorized in 1974 010 conducted its annual Overseas Tax- prepare their returns , are now fully operational . They are located payer Assistance Program in 1975 for the in the U .S . embassies or consulates in the twenty-second consecutive year . A tax- Competent Authority Cases following cities: Canberra, Australia; Cara- payer service representative (TSR) was Compliance Oversea s The interactions of U .S . and foreign tax cas, Venezuela~ Johannesburg, South Af- detailed to each of the 010 foreign offices systems inevitably generate such problems rica ; Kuaia Lumpur, Malaysia and Teheran, to counsel taxpayers during the extended In 1975, the Service continued its overseas as double taxation . To provide relief to Iran, These posts reinforce those already overseas filing period of January through audit program to encourage a level of taxpayers in these situations, tax treaties established in Bonn, London, Manila, Mex- June . Also, other "circuit riding" TSRs cov- compliance among Americans abroad include procedures for settlement of inter- ico City, Ottawa, Paris, Rome, Sao Paulo ered an additional 105 cities in 59 coun- which will compare more favorably with the national tax issues high degree of voluntary compliance in the by "competent authori- and Tokyo . In addition to the new posts, the tries . ties" of the signatory countries . During staffs at several of the older locations were United States. Under this program, reve- recent years, there has been a continuing increased . This expansion program should nue agents and tax auditors are detailed increase in taxpayer requests for competent 11 significantly improve the Service's overseas on six-month tours to the Service's foreign authority assistance, The U .S . competent operation by permitting a more intensified offices where they conduct both field and authority, the Assistant Commissioner and efficient coverage of each post area . office audits, working together with the (Compliance), and his foreign counterparts RSRs stationed overseas . have successfully resolved most of the For the second consecutive year, revenue problems which prompted these requests, officers were also detailed to several for- In the past five years, U,S. and foreign pign areas to collect tax payments and adjustments to taxpayer income to provide secure returns from delinquent taxpayers, relief through settlement procedures have F. The majority of 010 audits and collections totaled more than $110 million . Also, the still take place within the United States . An time required to process most of these 11 important phase of this activity is designed requests has been reduced by appr to ensure tax compliance by foreign corpo- mately 50 pi~rcent through improvedox' case rations doing business in this country . A management techniques . growing counterpart program is repre- sented by "support" audits, through which 010 renders assistance to district offices Exchange of Informatio n by examining foreign subsidiaries of U .S . corporations . Effective administration of U .S . tax laws as to multinational corporations and other U,S . taxpayers engaged in international operations has required increased coopera- Resolution of Tax tion under our tax treaties . The IRS has Jurisdiction Problem s continued to fulfill its reciprocal obligations specified in the treaties and has encour- In 1972, the Congress enacted legislation aged the appropriate use of the provisions providing for jurisdictional coordination be- for mutual exchange of information . tween the U .S . and the Territory of Guam on individual income tax payments . Taxpay- ers may now file and pay tax to only one of the two jurisdictions, depending on their place of residence at the end of the taxable year . The IRS and the Guam territorial government have cooperated closely in determining if taxpayers have filed erro-

Assistant Commissioner (Compliance) S . B . Wolfe program during an assignment to the IRS foreign presents superior performance award to Linda office in Rome, Italy, Harris for her work with the overseas audit 4 6

Technical The IRS Tax Administration Advisory Serv- The Commissioner of Internal Revenue is a Chapter 7 Assistance ices Division assigns tax advisors upon member of the Inter-American Center of Tax request by developing countries to help Administrators (CIAT), which has represen- Legal Activitie s to Foreign them modernize their tax administration tation from 26 countries of the Western Countries systems . During 1975 . 35 IRS employees Hemisphere . The purpose of CAT is to performed such overseas assignments . improve tax administration within the West- Full-time advisors were assigned to eight ern Hemisphere through the cooperative countries-Bolivia, Columbia, Guatemala, efforts of member countries . The Commis- Paraguay, Uruguay . Trinidad & Tobago, Viet sioner led the U .S. delegation to the Ninth Nam and Liberia. Short-term assistance in annual CAT Assembly in Ottawa, Canada Responsibilities specific functions was provided to the Gov- in June 1975 . of,the Chief Counsel ernments of Guyana, El Salvador and Ethio- pia, while broad tax administration surveys Litigatio n 1, were conducted for the Governments of Egypt and Portugal . Technical Tax officials from foreign countries visit IRS facilities for observation, to discuss prob- Administration lems in tax administration and for training . During 1975, 284 officials from 72 countries made such visits . Nearly 4,000 officials from 118 countries have visited the IRS during the past 13 years .

The Manhattan District hosts many foreign Robert Brunscon, Senior Inspector of Taxes . visitors each year . During October 1974, four William Scotland Rankin, Principal Inspector of members of Great Britain's Board of Inland Taxes, and Ian Douglas Thomson, Senior Revenue visited the district to discuss the use of Principal Inspector of Taxes, being greeted by automatic data processing in audit and collection Manhattan District Director Philip E . Coates and i functions, From left . the photo shows Ralph Assistant District Director George S . Alberts . Alexander Hamilton, Inspector of Taxes, Arthur

I " 48 4 9

Responsibilities The Chief Counsel is the chief legal officer of'the for the Internal Revenue Service and is a Litigation Both the National Office and the field of- Tax Court Cases Received member of the Commissioner's executive fices are actively involved in litigation . Tax 1971-1975 Chief Counsel staff, He advises the Commissioner on all Court, General Litigation, Criminal Tax, and matters pertaining to the administration and General Legal Services work is handled in 11,20 6 enforcement of the internal revenue laws the field offices subject to the overall direc- Numbers above bars and related statutes . as well as on all non- tion of the National Office . Refund Litigation represent total Tax Court tax legal questions . and Disclosure activities are centralized in cases . , the National Office . His advisory responsibilities are divided into two major areas : litigation and technical .

Tax Court Organization One of the major responsibilities of the Office of Chief Counsel is the representa- The Office of the Chief Counsel is organ- tion of the Commissioner of Internal Reve- ized as follows; nue in all actions brought in the United States Tax Court . One of the most signifi- cant events affecting Tax Court litigation during 1975 was the enactment of the Chief Counsel Employee Retirement Income Security Act Deputy Chief Counse l of 1974, which confers jurisdiction upon the Tax Court as of September 2, 1975 to Il render declaratory judgments with respect I to qualification of retirement plans, On June I 18 . 1975, the Tax Court issued its rules Associate Assistant Associate applicable to actions for declaratory judg- . Chief Counsel Chief Counse l Chief Counsel ments, effective September 2, 1975: (Litigation ) (Technical )

Refund Litigatio n Tax Court General The Refund Litigation Division performs all Litigation Litigation Interpretative necessary legal services on behalf of the Division Division Divisio n Internal Revenue Service in connection with I H H suits instituted in the United States District Courts and the Court of Claims by taxpay- Criminal _7GLLeDiegav gn ise,11Or.SSe, nIs 'loss RLegislation gul. . 0.7 an ers for refunds of taxes, The Division deter- 1971 1972 1973 1974 197 5 Tax d mines and coordinates the legal position of ices egulati.v .ns Divisio n Division the Service in these suits and incorporates LEDivisio _ tnffo such determinations in recommendations to the Department of Justice, which handles the trials of such cases . Refund ~ .vspAdmirrifive Litigation Services One of the most significant matters handled Refund Litigation Cases Receive d Division SDivision by the Refund Litigation Division during 1971-1975 H 'sts 1975 involved motion picture investment credit . The principal issue in this area Regional Counsel concerns the validity of Trees, Reg . § 1 .48- 1(f), D!s~lpsure,V, .".r , North-Atlantic which provides that motion picture Mid-Atlantic production costs are not eligible for the 14~1 Southeast investment credit . While pending cases in- Central volve only the motion picture and television Midwest industries, the issue could have wide signif- Southwest icance in the recording, book publishing Western and similar industries .

Tax Court, General Litigation, Criminal Tax, and General Disclosure Interpretative Le islation and Regulations L ga I Services have field counterparts, Refund Litigation, . and Administrative Services do not, so 5 1

Tax In Litigation-Tax Court Tax In Litigirtion-Refund Suits (In Thousands of Dollars) (In Thousands of Dollars) All Tax Court Cases District Courts Taxes and Penalties Over-payments Number Amount Amount Number of In no t Of Deter- Status Cases Dispute I Refunded 4 status Cases In Dispute mined Claimed Determined Pending July 1, 197 4 2,475 $379.74 1 Pending July 1 , 1974 13,7391 $2,144,978 , $284,51 6 Receive d 889 270,09 5 Received 11,206 667,748 31,709 Disposed of 784 81,013 $43,157 8,568 448,104 $146,589 14,905 $5,61 9 % Not Refunded 53.3% ol=ory"R.l. 32 .7% 37 .7% Pending June 30, 197 5 2,580 568,82 3 Pending June 30 , 1975 16,377 2,364,623 301,320

Small Tax Cases Court of Claims Pending July 1 , Number Amount Amount 1974 1,580, 949 , 42 Of In not Status Cases Dispute I Refunded Received 3,203 1,930 37 Dis ad of 2,594 1,471 $793 42 $17 Pending July 1, 1974 384 $321,828 , ;Feocsovery Rat e 53 .9% 40 .5% Received 129 70,451 Pending June 30 , Disposed of 103 .41,552 $31,536 1975 2,189 1,407 38 % Not Refunded 75.9% ; includes both realle. as . ond "t o LA-un, Drimneshad expressed as percentage of Amoun t Pending June 30,1975 410 350,727 of toutposels include cases trim, settedi and dismissed . some A Md .1 Claimed . Therse amounts do .1 Include &I.spoessel he denummoo amounts are for cows which were subse- assessurneres wNch am agreed to by the taxpayer at lanct or Qwrffly appealed, Appellee, oinnhh.h. .a. in he . . . W a Mimed thim1palrehIml . IN RIC110dhsd, y Rate shown 0010 represent the portion of Me amixon ;q which shis .funded 1. flue . .pay .,. R.,hinad Total Number Amount Amount of In not General Litigation held that the Service has authority to issue Status Cases Dispute I Refunded 4 National Office and field office attorneys in a "Jo hn Doe" summons to compel produc- Pending July 1, 1974 2,859 $701,569 1 the General Litigation area furnish legal tion of a bank's records relating to transac- Received 1,018 340,546 tions with unknown persons which suggest advice to the Internal Revenue Service in the possibility of liability for unpaid taxes . In Disposed of 2 887 122,565 $74,693 connection with the assessment and collec- United States v . Humble Oil & Refining Co ., % Not Refunde d 60.9 % tion of federal taxes and assist the Depart- 421 U .S . 943 (1975), which involved en- Pending June 30, 1975 2,990 919 .550 ment of Justice in the prosecution and forcement of a summons to compel a defense of suits to collect taxes, suits to company to turn over certain data concern- Cases In Courts of Appeal and the Supreme Court are Amount in Dispute includes claims tot refund of taxes, recover erroneous refunds, proceedings includ under led coluimns represx= the court III o:pin . beholeen, and easswood minimal. ing leases with unidentified lessors, the Dep'sels include cases thed, soft and dismiss - Thai portion d the Amount in Dispute which was net mtudoo under the Bankruptcy Act and other i nsol- Court vacated the judgment and remanded to pasr . vencies, civil enforcement of summonses,, the case to the Fifth Circuit for further and injunction and declaratory judgment consideration in light of its decision in actions . During 1975 the number of Bank- Biscegi The Fifth Circuit on remand de- ruptcy Act proceedings handled by General termined that the facts in this case did not Litigation attorneys, especially Arrange- warrant enforcement of a "John Doe" sum- ments under Chapter A of the Act, in- mons . United States v . Humble Oil & Refin- creased substantially . ing' Co ., 518 F .2d 747 (5th Cit . 1975) . The A major issue .in the General Litigation area Service has publicly stated that the author- during 1975 concerned the use of "John ity to issue "John Doe" summonses will be Doe" summonses by the Service in tax used oAly in limited and justifiable circum- investigations . In United States v. Bisceglia, stances . 420 U.S . 141 (1975), the Supreme Court it 52 53

Trial Court Case Record lGeneral Litigatlo n and Disclosure Cases Received (Opinions Rendered-Refund Litigation and Tax Court Cases) 971-1975 I Tax Court I Types of Cases-Regions: 1971 1972 1973 1974 1975 Court of District - 1,107 1 .217 1,153 i,iQ 1 .25 4 Claims Courts Small Ta Other Total Bankruptcies and Receiverships Cases x Wage Earners' Plans (CH . XIII ) 58 61 81 102 62 Action 1974 1975 2 1974 1975 3 1`974 1975 4 1974 1975 5 1974 1975 Arrangements (CH. XI ) 1,855 1,492 1,526 2,273 3,440 Decided in Is— ol G.amhwht-N.h,toa, 38 10 217 217 170 192 234 255 404 447 Reorganizations & Real Property 80 .9% 52.6% 601% 66 .2% 54 .5% 61 .7% 51 .4% 547% 52,7% 57 .5% Arrangements (CH . X and XII) 271 203 184 348 626 Nool in ta- of 140 100 102 T.MWI-N-oa, 5 4 95 82 23 35 61 49 N 84 Miscellaneous Insolvencies 73 199 -Percent 106% 21 .1% 27 .1% 25,0% 7 .4% 11 .3% 114% 105% 10,9% 10,8% Decedents' Estates 438 424 423 413 374 DeCided) carnally for the Tagmgr anc Patriot Y or the Suits to Collect Taxes 604 624 608 623 565 Govern,ent-Number 4 5 45 29 119 U 160 162 279 246 -P.,cent 8 .5% 263% 12.6% 8.8% 38.1% 27.0% 352% 34.0% 36.4% 31 .7% section 241 0 (28 U.S .C . 241 0) Interipteaders 174 206 226 242 222 47 19 351 328 312 311 455 466 767 77 7 Total Opinions Others 92 159 235 162 160

H.IM .d case. .. reflected as we opinion. 1 466 To, Courn Opinions inn,ohnng 661 cases other than Steel Injunctions 131 152 230 272 22 7 118 Oep"'lls hic a"InColfahI, 01C..hnora rnholving'not 23 cases . To, cases. 3 3284vhV,9,,1 cases . - In cows on ~ich decisions ir,one entered during the fiscal Disclosure and Testimony 297 . 411 449 481 424 311 To, C~ Opinions -Mhng To, cases. year. Summons Cases 1 083 1,307 1,371 1,663 1,877 Erroneous Refund Suits 50 28 32 31 42 Appellate Court Case Record (Decisions-Refund Litigation and Tax Court Cases) Miscellaneous Court Cases 527 513 593 530 564 Advisory Opinions 3,746 4,025 4,556 4,310 4 .860 Partly for Discharges of Property from Lien .311 2,429 2 .269 2,701 Forthe Against the and Partly 2,094 2 Government Government Against the Totak All Regions 12,600 13,332 14.236 14,931 17,500 Court Total Government No. % No. % No. % National Office : 1971 1972 1973 1974 1975 Courts of Appeals 245 179 73 .1% 45 18 .4% 21 8 .6 % Appeals 136 176 216 184 197 Orpinally tried in- A&isory 162 142 132 140 298 ax-Court 1331 103 77 .4% 17 12 .8% 13 9.8 % International Operations 118 113 88 165 126 District Courts 112 ~ 76 67 .9% 28 25 .0% 8 7 .1 % I' Disclosure and Testimony 29 54 212 158 1 54 2 Supreme Court Other Centralized Cases 2 19 40 22 26 29 I Of Inis c ... a mg .11y tried in the To, court, the Cwna of - Of the coses originally tried in proton Cotins. the Ccsrs of AMeaJs rendered 1 Minims 11 234 dockets . including 168 Appears rendered 112 Minims on 122 detces. uncWng a2 Total National Office . 464 525 670 673 65 0 dockets for the q.-Ion. 45 ofobay for the governnnent, and dock31 .;~Iort ftthe 9 parnially for the go- . andl 21 adainst the cownrinnent. Total All Regions and National Office 13,064 13.857 14,906 15,604 18,15 0

No, handled in the DoclOsuh, D,aro n Incildes Ra,nood Reorganizations and Act- to, 1,1-Imns and/or Oaclarao,~ Relief. Receipt and Disposal of General Utigation Cases- National and Regiona l

Status Court Non-Court Tota l Pending July 1, 1974 7,323 1,618 8,94 1 Received 9,867 8,283 18,150 Disposed of 8,296 7,990 16,286 Pending June 30, 1975 8,894 1,911 10,805 54 55

Disclosure Information Act, subject only to deletions of Criminal Tax Criminal Tax Cases Received Attorneys in the Disclosure Division handle trade secrets, confidential commercial or fi- National Office and field office attorneys in 1971-197 5 matters arising under the Freedom of Infor- nancial information, or clearly unwarranted the Criminal Tax area handle all criminal tax mation Act, as well as requests for disclo- invasions of privacy . Persons who have re- legal matters for the Internal Revenue Serv- sure of documents and testimony in both ceived unpublished letter rulings were ad . ice, coordinate criminal tax prosecutions tax and non-tax litigation . The Division is vised in a news release issued by the Service with the Department of Justice . assist the also responsible for providing legal advice that the above action had been commenced Tax Court and Refund Litigation Divisions in to the Service concerning implementation of and they could take whatever action or make coordinating the application of the civil the Privacy Act of 1974, effective September whatever comment they felt appropriate . Ear- fraud penalties, and coordinate disclosure 27, 1975 . lier, the D .C . Circuit held in Tax Analysis and matters in cases where criminal action is Advocates v. Intemal Revenue Service, 505 2,620 Specifically, the Division is responsible for anticipated or has been undertaken . 2,413 F .2d 350 (D.C. Cir . 1974), that the Service 2,385, planning, directing and coordinating for the had to disclose certain requested letter rul- During 1975, Criminal Tax attorneys fur- Internal Revenue Service all matters relating ings under the Freedom of Information Act, nished an increasing amount of legal ad- to requests for testimony and production of but did not have to disclose technical advice vice to criminal investigators in the Internal Internal Revenue documents, records or memoranda, In Fruehauf Corporation v. In- Revenue Service's Intelligence Division dur- information under the Federal Rules of Civil ternal Revenue Service, 522 F .2d 284 (6th ing the invei s tigative stage of criminal tax or Criminal Procedure, the Tax Court Rules, Cir. 1975), the Sixth Circuit determined that cases . In addition, decentralization of crimi- nal tax work to regional and branch offices the Court of Claims Rules and various State private excise tax rulings-letters were subject rl~~ court rules . This Division works closely with to disclosure, and technical advice resulted in a steady increase in pre-referral the Disclosure Staff of the Internal Revenue memoranda as a category are not covered assistance to the Intelligence Division, and Service . It also coordinates with the Depart- by Code § 6103 as tax return information. A resulted in a more efficient use of man- 1972 1973 1974 ment of Justice all litigation arising under petition for rehearing on this latter point was power in criminal tax investigations . I the Freedom of Information Act, including denied, A petition for certiorari was filed on recommendations about defense or settle- November 6, 1975 . The Service's position ment of suits and appeals of adverse remains that technical advice memoranda decisions . are tax return information not subject to dis- During 1975, the Division was extensively in- closure under the Freedom of Information volved in the vital question of the publication Act. of private letter rulings and technical advice In December 1974, the Commissioner an- Receipt and Disposal of Criminal Tax Cases memoranda . nounced a notice of proposed rule making 1971-1975 which would authorize the prospective dis- Tax Analysts and Advocates filed suit in April closure of future rulings and determination Status 1971 1972 1973 1974 1975 1975 in the District Court for the District of letters issued by the Internal Revenue Serv- Columbia seeking all letter rulings issued ice . A public hearing on the propos6d Pending Beginning of Fly 2,206 2,467 2,762 3,597 3,895 since the effective date of the Freedom of provision was held in March 1975 . Received, Total 1 .313 1,680 2,385 2,413 2,620 0 Disclosure Division With Recommendation for Prosecution 1,204 1 .523 2,304 2,304 2,44 Fiscal Year 197 5 With Requests for Opinion, Etc . 109 157 81 109 180 Disposed of. Total 1,052 1,385 1 .550 2,115 2,156 Pending Pending Prosecution not Warranted 79 94 104 181 205 Types of Cases 7-1-74 Received Disposed 6-30-75 Dept . of Justice Declined 48 57 72 133, 1~6 FOIA & Miscellaneous Litigation 12 26 9 29 Prosecutions 759 1,009 1,077 1,521 1 1,39 7 FOIA Opinions 58 '98 66 90 Opinions Delivered 46 58 46 6 2 9 4 Disclosure Opinion s 37 200 152 85 Other Closings 120 167 251 218, 284 Discovery Opinions 3 20 12 1 1 Pending end of F/Y 2,467 2,762 3,597 3 .895 4,35 9 Miscellaneous Opinion s 23 14 23 1 6 'Revaed FOIA Requests 35 21 1 4 NOTE: Sonne cams nclude mom than ons taxpaye, FOIA Appeals 118 59 5 9 Disclosure Litigation 1 7 3 5 Disclosure Coordination (excluding if Discovery ) 6 32 22 1 6 Division Totals 140 552 367 325

t WIJ 56 5 7

Results of Criminal Action In Tax Fraud Cases 1971-1975 Technical The two technical divisions of the Office of Legislation and Regulation s Chief Counsel-interpretative and Legisla- tion and Reguiations-are located in the The Legislation and Regulations Division Number of Defendants National Office . represents the Commissioner and the Serv- Action 1971 1972 1973 1974 1975 ice in tax legislative matters . Division attor- neys also provide the Treasury Depart- Plea of guilty or nolo contendere 645 733 914 1,062 1,04 6 ment's Assistant Secretary for Tax Policy Interpretative with technical assistance and expertise in Convicted after trial 142 113 190 191 17 3 The Interpretative Division provides legal the development and drafting of internal Acquitte d 57 40 55 97 153 assistance to the Office of Assistant Com- revenue legislation and furnish assistance Nol-prossed or dismisse d 153 151 112 115 16 8 missioner (Technical) and the Office of to Congressional committees in the drafting Assistant Commissioner (Employee Plans of committee reports on tax legislation, Total disposal s 997 1,037 1,271 1,465 1,470 and Exempt Organizations) in the issuance Attorneys in the Legislation and Regulations of letter rulings, technical advice, revenue Indictments & Informations 5 Division are responsible'for drafting pro- 956 1,085 1,186 1,441 1,49 rulings and revenue procedures . The Divi- posed regulations, drafting Executive Or- sion also provides legal assistance to other ders, and for representing the Service in Divisions in the Chief Counsel's Office in negotiating and drafting tax treaties with determining litigating positions and in coor- foreign governments. Working closely with General Legal Services dinating the litigating positions with the ruling Service officials, attorneys in this Division General Legal Cases Received positions of the Service 1971-1975 . The Interpretative prepare and review tax forms and instruc- The General Legal Services Division was Division was reorganized in 1975 by established on July 21, 1974 to handle the the crea- tions, hold hearings on proposed regula- tion of an additional Assistant Director, who tions, evaluate suggestions by Service per- increasing volume of legal matters arising in will be responsible for the general supervi- the non-tax legal area . These matters were sonnel for regulatory changes, and review sion of the legal work received by the Division publications issued for the information and formerly handled by the General Legal concerning employee plans or exempt Branch of the Operations and Planning organizations , guidance of taxpayers and Service officials . Division, which was abolished on the same date. Attorneys in the General Legal Services function in the National Office and the field Interpretative Division Cases Received offices represent the Service in labor cases, 1971-1975 - including representation hearings, impasse proceedings, unfair labor practices, and arbitration hearings, and serve as counsel Type of Case 1971 1972 1973 1974 1975 to and a member of management teams Revenue Rulings 30 5 512 511 471 443 negotiating individual and multi-unit labor Letter Rulings agreements . In addition, the attorneys rep 59 89 107 124 11 7 -resent the Service in adverse action and Technical Advice 95 114 117 90 80 discrimination proceedings, represent the Other Advice 22 Director of Practice, Office of the Secretary 0 173 185 158 21 2 of the Treasury, in disciplinary actions Total 679 sea 920 843 83 2 brought against tax practitioners, and pro- vide on-going advice to the Service con- berning government contracts, tort claims, forfeitures, Inspection Service matters, and Legislation and Regulations other areas not directly related to Federal Division Cases Received tax matters . The most significant event 1971-1975 affecting the General Legal Services func- tion during 1975 was the decentralization of Type of Case 1971 the function, so that advice in non-tax legal 1972 1973 1974 1975 Legislation 2 areas will be readily available to the Service 1971 1972 1973 1974 1975 4 76 46 77 85 both in the National Office and in the field Regulations 99 110 90 56 17 1 offices . Miscellaneous 2 2 19 38 43 3 3 Total 145 205 174 176 289 5 8

During 1975, The Division established over Chapter 8 50 regulation projects to implement the Employee Retirement Income Security Act of 1974 (P .L . 93-406), approved Sept. 2. 1974 . Planning and Researc h A substantial number of these projects were published either as proposed or temporary regulations during this past year, including Planning Activities regulations dealing with specific problem areas under the new minimum participation, Research and Testing vesting, and funding standards of Cod e Legislative Activities §§ 410, 41 1, and 412 applicable to qualified plans; individual retirement accounts, an- Federal-State Cooperation nuities, and bonds ; lump-sum treatment of Statistical Activities distributions from qualified plans ; "H .R . 10" plans covering self-employed individuals; and declaratory judgment procedures estab- lished for qualified plans under Code § 7476 .

Administration The Administrative Services Division is re- sponsible for the general supervision of all matters relating to administration and man- I agement in the Office of Chief Counsel. The Division is also responsible for the attorney recruitment program of the office . Under the aegis of the Division, an Equal Employment Opportunity Advisory Commit- tee, composed of representatives from each division in the National Office, assists in the administration of the Chief Counsel's Equal Employment Opportunity Program . The Office has made substantial progress in achieving its stated objectives and goals under the Affirmative Action Plan during this past year . In addition, the Federal Women's Program Advisory Committee participated with the Commissioner's committees in the I observance of International Women's Year with a series of monthly programs on new legislation and legal rights of particular concern to women . f During FY 1975, the Administrative Services Division completed testing a computerized legal research system, Technical Reference Information System, and is making plans for the installation of the system .

I 6 0 61

Planning Planning activities of the Service during Optical Character Recognition Research Automatic Document Numbering Statistical Sampling Activities 1975 concentrated on the design and test- Recent technological advances in Optical and The IRS annually processes millions of A ing of improved automation systems, analy- system is being developed to provide Character Recognition (OCR) development Testing paper documents, many of which are man- revenue agents with computer-generated sis of pending legislation, and statistical indicate that OCR will probably be more ually numbered to facilitate control . We now sampling plans . This will reduce the amount compilation and projection of tax return economical than manual transcription, The plan to conduct a test of Automatic Docu- of time needed to complete many large data . Long-range planning of workloads Service plans to test this hypothesis in two ment Numbering machines in one service and resources and measurement of prog- corporate examinations because only a areas : (1) converting to magnetic tape the center . We expect these machines to be fraction of the voluminous records which ress in meeting program objectives contin- data reported by taxpayers on information capable of automatically feeding, number- ued as central features of planning activi- previously would receive individual scru- returns such as payments of wages, divi- ing, and sequentially stacking tax returns as tiny will now require such action . Instead, a ties . dends and interest, or adjustments to in- received from taxpayers, therefore having the probability sample of these records will be come, and (2) conversion of data recorded potential for eliminating current manual num- selected through the use of programmed on Federal Tax Deposit forms (FrD's), and bering activity and expediting the flow of re- random number generators, The results of Tax Administration System other forms with print characteristics con- turns processing . Subsequent tests will de- these sample examinations will be evalu- trolled by Service preparation, such as termine the feasibility of computer-controlled ated in terms of established statistical prin- Plans for a redesigned IRS data processing numbering . internal management documents, turn ciples . I framework-the Tax Administration around documents, management informa- System-were completed by the Tax Sys- tion data, and others. tems Redesign Division and, after pending Remittance Processing Congressional approval, a solicitation docu- System (RPS) Restructure of the Planning ment will be released to equipment manufac- Successful tests were made with a proto- and Research Activity turers . The redesigned system was de- type computerized system to expedite veloped to improve service to the public, in- Recognition of the necessity for a very clearance and deposit of tax remittances . close relationship between research efforts cluding the processing of tax returns and the Combined remittance data input, number- retrieval of information related to those re- and the analysis of operations resulted in ing and preparation of accounting docu- the restructure of the Office of Planning and turns, to provide increased capability for ments are included in a single operation. compliance and enforcement programs, and Research . All Servicewide research and to enable the Service to accommodate The RPS will reduce processing co~ts, operations analysis functions were assigned accelerate remittance posting to account to a new Research and Operations Analysis changes effectively and overcome the inef .- status and tax data bases, and provide a ficiencies of the old system . Division . Since applications of automated I "fact of filing" indicator for account status systems are closely related to these efforts, To accomplish the Tax Administration System operations . the functions of the former Systems Devel- objectives, the taxpayer account files at the opment Division were also assigned to the National Computer Center in Martinsburg, new Division. Another facet of the restruc- West Virginia. will be decentralized to the ten ture was organizational identification of the I IRS service centers ; the National Computer Technical Reference Information increasing responsibilities associated with Center, in turn, will assume the new role of drafting of legislation related to the adminis- controlling activities between the service cen- Testing was successfully completed an a tration of the Internal Revenue Code . This ters and maintaining a directory of service Technical Reference Information (TRI) sys- was accomplished by establishment of the center records so that an account is not kept tem. Under the control of a large scale Legislative Analysis Division . on file at more than one service center . computer, the TRI applies computer tech- Implementation of the redesign plans will be niques to help resolve legal research prob- of such magnitude that it will take place in lems of the IRS. Researchers query the TRI phases . The major phase, planned to begin system, which contains the current Internal in the initial service center in late 1979 and to Revenue Code and Regulations, Revenue be implemented nationwide over the next Rulings since 1954 and selected tax cases year, will consist of converting the individual from the various courts, via interactive video master file accounts to the Tax Administration terminals for materiaJ relevant to various tax System . All phases are expected to be opera- issues . Fifteen video terminals are currently tional in all service centers for the 1982 filing installed in large IRS offices and we plan season . gradual expansion to Otheroffices .

4i, 62 1111

63 1 1

Legislative Pension Reform Tax Reform Other Legislative Federal-State Exchange Activities Landmark legislation on pension reform, the During the 93rd Congress, extensive hear- Developments Progra m Employee Retirement Income Security Act ings were conducted by the House Ways In addition to the laws on pension reform, The Service has formal agreements which of 1974, was enacted during the second and Means Committee on a proposed Tax freedom of information, and rights to pri- provide for reciprocal exchange of tax infor- session of the 93rd Congress . Under the Reform Act of 1974 . The Committee vacy, 16 other public laws enacted during mation with 48 states, the District of Colum- Act, the Service established an Office of reached tentative decisions on proposals the second session of the 93rd Congress bia, Puerto Rico, Guam, and American Employee Plans and Exempt Organizations which would have resulted in a large-scale required implementing action by the IRS . with national and field office func- revision of the Code, but a bill was not Samoa . A revised model agreement was (EP/EO) Among significant laws passed were those designed to tighten up the language on tions under an Assistant Commissioner . reported out . The IRS maintained close dealing with tax relief for U .S . personnel disclosure of tax return information, and See Chapter 5, page 40, for EP/EO activi- liaison with the tax writing committees of the " who served in Vietnam and their families, some states have already signed agree- ties) Congress and assisted the Office of the an increase in interest rates applicable to ments conforming to the revised model . Secretary in preparing a number of legisla- refunds and delinquencies, and IRS assist- Tax Reduction Act tive proposals for tax simplification and ance in locating absent parents and col- Magnetic tapes containing standard data reduction of administrative problems in en- elements extracted from the Individual Mas- The Tax Reduction Act of 1975 was en- lecting court-ordered payments for child forcing current tax laws . support . ter File for tax year 1973 were furnished to acted during the early part of the 94th tax authorities in 38 states, the District of Congress and required rapid response from Columbia, and Puerto Rico . Also available the Service in implementation of a program Fecleral-State Aid to State Tax Authorities to state tax agencies are magnetic tape to compute and issue rebates, revision of Confidentiality of Tax Return s Cooperation Under the Intergovernmental Personnel Act , extracts of information from the Business withholding tax tables, distribution of a new Numerous bills were introduced in the 93rd Master File and Service master files relating Circular E, and dissemination of information IRS employees have helped state,tax au- I and 94th Congresses which would restrict thorities improve their programs and have to gift taxes and exempt organizations . on other features of the law, Provisions of the disclosure of tax returns and tax return the Act made it necessary to revise a large contributed to increased cooperation be- number of taxpayer publications, tax regu- information permitted under the Internal tween the IRS and state tax authorities . In lations, returns, transcription instructions, Revenue Code. The main thrust of these 1975, the IRS provided almost 160 weeks and computer programs . bills was to prescribe by statute the per- of training assistance to 17 state and local Federal Collection of State sons to whom and the purpose for which governments State revenue employees re- Individual Income Taxes disclosure of such information may be ceived training in special agent, revenue No state has elected to have the Federal made and to establish tighter rules and agent and income tax law courses . IRS government collect individual state income I safeguards to insure the confidentiality of Freedom of Information Act instructor training courses have enabled the taxes as authorized by the Federal-State tax returns and tax data . governments of New York State and the city Tax Collect :on Act of 1972, but in anticipa- Amendments and Rights to of Philadelphia to develop training courses Privacy tion of such possible election by states , which will meet the future needs of their tax the IRS has completed preliminary plans for Significant non-tax legislation affecting the department employees, tax withholding and operating procedures, IRS included the Freedom of Information Energy Legislation Act Amendments and the Privacy Act of The Congress is actively considering en- 1974. The FOI amendments impose strict ergy legislation which will provide for new time limitations within which an agency taxes and credits to encourage energy con- must act on information requests, and re- servation . Provisions under consideration I strict the information which may be with- would have a substantial impact on Service held . The Privacy Act imposes conditions operations . under which disclosures may be made, establishes notice and recordkeeping re- quirements relating to disclosures, estab- lishes procedures by which an individual Single Wage Reporting System may inspect and request amendment of The Secretary of the Treasury has approved records pertaining to himself, and provides a draft bill which, if enacted, would provide civil remedies and criminal penalties for for the combined annual reporting of wages violations, on Form W-2, Wage and Tax Statement, to serve the needs of the Social Security Administration in determining social security program coverage and benefits as well as the IRS for tax enforcement . This system would benefit both employers and the Fed- eral government through a substantial re- duction in the volume of required wage reports . The IRS has long urged this reduc- tion in the U.S . paperwork burden . 64 65

Statistical Statistics of Income Highlights based on the full Statistics of Income sample Selected Types of Activities The Statistics of income (SOI) reports provide (over 235,000 returns for 1973) instead of the Returns Filed In 1974, and Projected for subsample of about 100,000 returns used for 1975,1976, 1980 and 1985, By Calendar Yea r the public and the Government with a wide (Thousands) variety of data reported on income tax re- the basic model . turns, without violating taxpayers' rights to privacy . The estimates are based on rep- Projected Pement - change resentative samples of returns . Returns Filed Projections Actualmate Elld Type of return 1974 1974- SOI reports published in 1975 covered indi- Projections of the number of returns to be 1975 1976 1980 1985 1985 vidual, corporation, and business income tax filed serve as the basis for the development (1) (2) (3) (4) (6) (6 returns for 1972 . The latter two were prelimi- of the Service's plans for the allocation of ) Total retums 122,082 125,020 128,11 nary reports . All of these reports are issued manpower and facilities as well as budget 07 137,636 151,480 25 .1 annually , Individual . total requests. These workload projections are 81 .386 84 .022 86,364 93.781 104,206 28. 0 I Form 1040 A Also in 1975, after an interval of some years, prepared for the United States as well as for 22,221 22,421 24,935 the IRS published an SOI report on estate tax service center areas, regions, and districts 23,322 24,015 8. 1 . Form 1040, total returns . This report is based on Federal es- Statistical techniques are used to identify the 59,051 61,484 61 .309 70,326i 80,049 35.6 tate tax returns filed in 1973 for decedents relationship between tax returns filed and Adjusted&OX income under$1 (most of whom died in 1972) . Work also economic and demographic variables . An- 28.256 25,897 25.798 22 .402 19,571 -30.7 began on the first of a projected series of nual updating allows for the incorporation of Adjusted gross income I $10.000 and over statistical reports covering tax-exempt or- the most recent economic outlook as well as 30.795 35,587 35 .511 47,927 60.478 96 .4 ganizations, the first of which is expected to allowing the incorporation of the effects of tax Other Individual 114 cover compensation plans, farmers'coopera- law changes. 117 120 130 142 25. 1 Fiduciary 1 .456 tives, and other exempt organizations includ- The total number of returns filed in 1975 1,566 1,650 2 .178 2,965 103. 6 ing charities, schools, and associations . Partnershi p 1,106 1 was about 3 million higher than in 1974 . An .132 1,153 1,221 1,299 17.4 additional increase of Corporation, total Statistics of income publications can be ob- 3 million more returns 2,085 2 .076 2,117 2 .340 2,662 27 .7 tained from the Superintendent of Docu- is expected in 1976 . Much of the antici- Forms 1120, 1120 pated 1976 increase can be attributed to ments, U .S. Government Printing Office, Special, total 1 .744 1,726 1,748 i .896 Washington, D,C. 20402 . the Earned Income Credit provisions which 2,123 21 .7 Assets under $50,000 the Tax Reduction Act of 1975 made effec- 762 755 765 820 910 19A tive for that filing year only . Between 1977 Assets $50,000 under $1,000,000 and 1980, returns are expected to increase 853 848 858 934 1,050 23. 1 at an annual rate of 2 .3 percent and at an Assets $1,000,000 or more _11-2-9 Tax Models annual rate of about 2 percent between 1980 123 125 142 1-6-3-26 3 Form 1120S 341 Orginally developed over 10 years ago to and 1985. 350 369 444 539 58 .2 meet Treasury's need for timely estimates of Employment 24 .740 The trend toward more complex returns is 24,666 24,746 25,358 26,489 7 .1 the revenue effects of proposed tax legisla- Estate and Gift tion, the tax models continue to be valuable also expected to continue . Individual re- 474 499 528 687 924 94. 9 tools for economic planning . Five basic mod- turns with adjusted gross income of Exempt Organization and $10,000 and over are expected almost to Employee Plan s 1 .442 1,525 1 els, representing the returns of individuals, double between 1974-85 . Fiduciary, estate, .971 2,159 2 .469 71 . 2 corporations, proprietorships, partnerships, Excise gift, exempt organization, and employee 809 833 835 -646-852 5 4 and estates, are now used , Othert plan returns are also expected to increase 8.854 8,701 8,743 9.068 9,614 Each model consists of a set of generalized rapidly . I InciWes Forms 7 8 11 1 computer programs used with specially 1 B 11C 4705, 4706. 4707. 4708, O~MR-i-d 8,d 1-1 fig .- ~pp,d by Slsl,st,cs Projections of some major categories of 1040ES, 7004, 7005, 24~8 ~;d 1&2. ' ~, 16 . 1975) . structured data files comprising records in returns are shown in the following table . the Statistics of Income files. Statistical infor- mation is generated from a model file by using instruction cards designed by statisti- cians and economists. In addition to the basic tax model for indi- vidual returns, the Service developed, in connection with the Federal-State Tax Collec- tion Act of 1972, a special individual model set, "State Tax Models ." These models are designed to permit reliable data estimates for each of the 50 states and the District of Columbia, Toward this end, the models are

~m 66

Maintaining Integrity and Efficiency Management and Administration Advisory Groups 68 69

one of these convictions were for bribery, A New Jersey taxpayer and his CPA were Maintaining Internal audit and security programs of the Fraud, Embezzlement or arrested for bribery of a revenue agent and Inspection Service help IRS managers Misconduct 15 were for assault, and the remainder Integrity involved such other criminal charges as conspiracy after payment of $1,300 for a no and maintain the highest levels of integrity and One of the basic purposes of the Internal embezzlement, conspiracy to defraud the change audit result . Efficiency efficiency . Audit program is to detect fraud, embezzle- Government, obstruction of justice, sub- A dentist in California was indicted for ment, or other wrongdoing on the part of scribing to false returns and disclosure of paying a revenue agent $1,000 in an effort Service employees or others who attempt to confidential tax information . to reduce tax deficiencies resulting from an Internal Audit Activities corrupt employees . audit of two tax returns . The Internal Audit Division independently Integrity reviews during 1975 resulted in the reviews all IRS activities to ensure that detection of fraudulent or erroneous refunds Bribery Attempts Assaults and Threats policies, procedures, and controls protect totaling $720,000 . In one case, the preparer on IRS Employee s taxpayer rights and the revenue, and that sent fictitious tax returns to all ten service Last year, IRS employees continued to Service operations are carried out effi- centers seeking refunds totaling $270,000. thwart those persons who challenged the Since March 1972, when it was assigned ciently, effectively, and in accordance with Early detection of the scheme resulted in integrity of the Service through attempted the responsibility for the Assault Program, supression of all of the fraudulent refunds lbribery~ In 1975, 219 employees reported the Internal Security Division has investi- laws and regulations, Varied auditing tech- 238 niques, including computer analyses and prior to issuance, The integrity reviews were possible bribery attempts, resulting in gated 1,519 cases in this area . Prosecution statistical sampling, are used to detect also a contributing factor in the referral to 61 arrests or indictments . was authorized in 137 cases and 57 of operating problems and integrity break- Internal Security of information indicating During the 14-year period that the IRS these resulted in convictions . During 1975, downs . possible breaches of integrity by 249 em- Inspection Service has had the responsibil- 619 investigations were initiated, and 15 ployees and other individuals . ity for the bribery program . IRS employees persons were convicted . In instances where I In addition to the prevention of revenue have reported 1,647 bribery attempts . Ap- prosecution is not authorized, inspectors losses due to early detection of improper proximately one of every four such attempts interview the alleged assailant, with the Savings and Improvements actions, the integrity reviews have a deter- resulted in prosecution of the taxpayer ; approval of the U .S . Attorney, to determine Management actions resulting from internal rent effect on those contemplating improper in the remainder there was insufficient evi- his or her full recollection of the incident . audit reports have improved service to actions, and also identify operational prob- dence to warrant prosecution . Since 1961, The alleged assailant is informed of the taxpayers, increased operating efficiency, lems for correction by management . bribery investigations have resulted in 442 applicable Federal statutes and advised strengthened internal controls, and stimu- arrests or indictments and 329 convictions that repetitive acts could result in serious or guilty pleas . At the end of 1975, 44 consequences, including prosecution . lated an attitude of integrity awareness I within the Service . In addition, measurable persons were awaiting trial on bribery The following cases illustrate examples of savings and additional revenue resulting Internal Security Activities charges . threat and assault cases this year : 11 from Internal Audit activities in 1975 are Internal Security Division inspectors con- The following cases illustrate bribery at- An Oklahoma taxpayer was arrested for I estimated to exceed $32 million . duct background investigations of IRS job tempts during 1975 : threatening two revenue officers who were Corrective actions on some internal audit applicants and investigate complaints of Two Pennsylvania CPA's were each sen- attempting to seize his truck . The taxpayer findings do not result in measurable sav- criminal and non-criminal misconduct and tenced to tHiee years probation and fined brandished a pistol while threatening and i, ings or additional revenue, but instead irregularities concerning employees . They $ 10,000 for attempting to pay an audit ordering the revenue officers from his prop- accelerate the collection of taxes or other- also investigate persons outside the IRS conferee $15,000 to allow corporate travel erty . wise improve Service operations and pro- who attempt to bribe or otherwise corrupt and entertainment expenses of $103,000 An Indiana taxpayer was convicted for cedures . Management actions to accelerate Service employees or who threaten or as- which had previously been disallowed . a ssaulting two revenue officers during a the collection of taxes were taken on ac- sault employees . A Flotida hotel owner was indicted for seizure of his automobile . The taxpayer counts and returns estimated Lp total $17 attempting to pay a revenue agent $1,050 struck both revenue officers and kicked one The Division also investigates the unauthor- of the officers after knocking him to the million . ized disclosure of Federal tax return infor- to allow $70,000 worth of claimed business mation, disclosure or use of information by expenses that could not be substantiated ground , A Georgia taxpayer was arrested after he preparers of returns, and investigates during an audit . charges against tax practitioners . In addi- A major pornography peddler and Mas- pulled a knife on a revenue officer, shoved Disclosure Safeguard s tion, the Division conducts special investi- sage parlor owner in New York and his go- him in a room and physically assaulted him between were indicted for attempted brib- following a disagreement over delinquent Periodic reviews are made in all regions to gations and inquiries as required by the taxes . evaluate security and controls over Federal Commissioner and the Office of the Secre- ery after paying special agents $14,000 to tax data . As a result of these reviews in tary of the Treasury . "fix" the pending tax case . 1975, Service managers took action to A $5,000 bribe payment to a revenue During 1975, Internal Security Division in- agent in Pennsylvania in an effort to reduce Prevention o f strengthen the security and controls over spectors arrested or were responsible for the computerized Integrated Data Retrieval an $80,000 tax assessment resulted in the Organized Crime Influence the indictment of 140 individuals, including arrest and conviction of an auto parts System and the tax document files . Also, 20 employees or former employees and The possible corruptive influence of organ- actions were taken to strengthen the proce- manufacturer in California and a CPA in ized crime upon the Service, always a 120 taxpayers, tax practitioners or others . A Pennsylvania . The payment was forwarded dures and practices for exchanging tax total of 76 clefendents were convicted dur- Matter of concern, has resulted in extensive data with the states, to the revenue agent through the Pennsyl- investigations . In one case, extending over I ing the year including 57 defendents who vania CPA from the manufacturer in Califor- pleaded guilty rather than go to trial . Forty- nia . four years, ten individuals identified with organized crime were indicted on bribery I 70 7 1

and conspiracy charges . Seven of them The chart on the next page shows the type have been convicted, two were acquitted of investigations completed during the past Internal Security Division Investigations and the charges were dropped against one two years and disposition of those cases . who pleaded guilty to other FBI charges . Type of Investigations and Actions The last two convictions involved a gam- 1974 1975 bling figure and an alleged kingpin in a Total Investigations 21,32 2 18,26 5 crime family . Investigative Teamwork Personnel investigations Breaches of integrity by individuals can be Character and Security 13,823 11,104 investigated jointly by Internal Audit and Conduct Other Criminal Prosecution s Internal Security with the assistance of the 1 .36 7 1,063 IRS Intelligence Division in some cases . Special Inquirie s Other criminal activities involving the Serv- 2 .71 1 2,56 1 Total Personnel investigation ice which led to prosecutions as a result of In one case, a supervisory employee was s 17,901 14,728 Internal Security investigations this year indicted on 19 counts of embezzlement in were the following~ An applicant for enroll- October 1974 . The investigation disclosed Other Type investigation s that he misappropriated more than $28,000 ment to practice before the IRS in Florida Assaul t 47 2 of taxpayers' payments and applied them to 61 9 was arrested and convicted for submitting Disclosure false statements on his application in an his own estimated tax account subse- 10 3 179 attempt to conceal a prior conviction stem- quently refunded to him . He pleaded guilty Applications to Practice Before IR S 1,20 7 1,491 to the charges and received a prison term ming from failure to file an income tax Charges Against Attorneys, CPA's and Enrollees return . for his actions. 74 75 Federal Tort Claims Two Michigan accountants were arrested In another case, a former employee misap- 144 134 Bribery for conspiracy and extortion in a scheme propriated nearly $9,000 while working for 21 5 21 4 involving the impersonation of a revenue the Internal Revenue Service . She was investigations for Other Treasury Bureaus indicted for this action and subsequently 1,206 825 agent and an attempt to extort money from Total Other Investigations a taxpayer for ending a non-existent tax . pleaded guilty to the charges. Part of the &421 3,537 sentence provided that she must make full investigation . Actions by Management officials restitution to the Government for the money an Personnel investigations A former Fresno Service Center employee that she embezzled . and his brother were arrested and con- Total Action s victed after attempting to defraud the Gov- Violations of tax laws discovered during 17,90 1 14,728 Separations 1 ernment of $14,000 through a refund internal audits and integrity investigations 33 1 256 scheme cons i are referred to the IRS Intelligence Division Suspensions From Duty and Pa y 11 5 for investigation if no employees are in- 74 volved . During the year, there were 52 such Reprimands, Warnings and Demotion s 1 .033 796 referrals . Rejected for Employment 329 195 Investigation of Employees 2 In each region, joint Internal Audit-Intemal Non-Disciplinary Actions 16,093 13,40 Employees who engage in improper behav- Security integrity developmental projects 7 ior or unlawful actions constitute a very were established to probe identified high Separations by Type of offense . The small percentage of the IRS work force risk Service operations . For example, tests Brioery, Extonion or Collusio vast majority of investigations relating to of selected seizure and sale transactions n 2 5 alleged acts of impropriety by Service per- were made to determine if seized property Embezzlement or Theft of Funds or Propert y 3 8 sonnel result in exoneration of the employ- had been disposed of in accordance with Failure of Employee to Pay Proper Ta ees . prescribed procedures. Also, tax adjust- x 6 6 2 3 Falsification or Distortion of Reports, Records, etc The Internal Security Division completed ments resulting in large refunds were re- . 11 7 123 viewed at service centers to verity the 18,265 investigations during the year . In Unauthorized Outside Activity 3 2 addition, singular and multiple police record propriety of the adjusting actions . A third Failure to Discharge Duties Properl y 1 0 searches were conducted on 14,329 per- project was established to determine the 1 2 sons considered for temporary short-term propriety of the release of tax liens for Divulgence of Confidential informatio n 2 4 appointments or for positions created for delinquent accounts which had been out- Acceptance of Fees and Gratuitie s standing for long periods . 2 4 special economic and educational pro- Refusal to Cooperate in Official grams . investigation 0 Personal and Other Misconduc These searches or investigations resulted in t 125 7 5 the rejection of 195 job applicants and in Inclwes hiognalims, tehremens or omer seborat-s omse disciplinary actions such as separations, amptoyees were under mh,ashgai,on or before adm strawe fthides cieerance ard, ciosed, withota achon hittere oh conow de-Im was made on d, .,Phn .,y vicm where in,est,gairde mestiptions. suspensions, reprimands . warnings or de- d8blosed darogatuy int-hoh. motion against 1,126 employees . 72 73

Management Cost Reduction and Special Merit from the Association of Rec- Communications via video tapes-a means, Reduction in instructor time-reducing by and Management Improvement ords Executives and Administrators in rec- for the Commissioner and other headquar- almost 50 percent the time and number of Administration With active support and involvement of ognition of their achievements on this proj- ters officials to directly communicate their executives needed to serve as instructors in executives and managers at all levels, the ect . views, official policy, and new procedures improved mid-level training courses which on a person-to-person basis without the IRS in 1975 placed high priority on and Employee participation in cost reduction accomplished in 2Y2 weeks what formerly carried out numerous projects aimed at efforts was successfully promoted through field executive having to travel to executive took 4 weeks . conferences . reducing costs and improving the efficiency the incentive awards program . During 1975, of operations. While it is not feasible to 932 employee suggestions were adopted, I determine and report the savings from all resulting in tangible benefits of $710,200 . In cost reduction actions, the known results of addition, 430 awards were granted for spe- several major cost reduction initiatives in cial achievements which saved $535,900 . overhead support operations indicate that savings of approximately $20 million (some This total tangible savings of $1,246,100 of a cost avoidance nature) will be realized from suggestions and special achievements . slightly exceeded incentive awards pro- For example, estimated savings in space gram savings reported in 1974, for which and property utilization of over $400,000 the Service received the Secretary's Award were reported in 1975, and savings of over for Cost Reduction and Management Im- $3.0 million are projected for 1976 as a provement . result of actions to reduce office space expansion ; repair and refinish existing furni- I ture when economically sound ; use multiple occupancy work stations where more than Safety Programs one worker can efficiently occupy one work station ; verity actual IRS-occupied square With a rate of 1 .9 disabling employee footage against measurement and billing injuries per million staff-hours worked in records; and review assigned quality rat- calendar year 1974-down from a rate of ings and classifications of IRS space . 2 .0 in 1973-the Service continues to rank as one of the top Federal agencies in the In the telecommunications area, an inten- area of health and safety . sive cost reduction campaign resulted in better use of telecommunications facilities Service personnel drove 127 .6 million miles and innovative approaches toward provid- on official business in 1975 with only 812 ing effective telecommunications at lower accidents. for a low accident frequency rate cost . This campaign has reduced the cost of 6 .4 accidents per million miles driven. of toll-free Taxpayer Service, Federal Tele- communications Systems (FTS), and local and long distance telephone calls in 1975 Executive Personnel by $1 .1 million . The IRS experienced an acute turnover of Several programs of effective mail manage- executive staff this year because of the men( produced savings in 1975 of nearly large number of senior-level officials who $3 .9 million . retired in 1974 and the $36,000 ceiling on Records disposal during calendar year executive salaries . However, the Service 1974 resulted in the release of space and undertook to meet its obligation to fill exec- equipment valued at $2,047,000 . A total of utive positions by training 18 employees in 126,953 cubic feet of records was de- an executive development class . stroyed in accordance with regular pro- Other special efforts used by the IRS to grams, and 265,580 cubic feet of records train mid-level and top-level employees and were retired to Federal Records Centers . minimize the amount of time senior officials The Service's reports curtailment project, are away from their posts of duty included : which in 1974 yielded an annual savings of Development of "Technical Guidelines for $2 .4 million was carried into 1975 and Executives"-a ready desk reference pro- produced additional savings of $700,000 viding current, concise and accurate inter- Commissioner Alexander made several visits to Brookhaven Service Center, Holtsville, N .Y., from through the elimination of unessential re- pretation and clarification of those complex the North Atlantic Region during 1975 . In the top left, Regional Commissioner Elliott Gray and ports and the modification of others . IRS portions of the Internal Revenue Code and photo, the Commissioner visits employees and Commissioner Alexander discuss operational employees Gary Hall, Roy Shiflett, and Manual needed in the executive's day-to- managers at the newest Manhattan District post- matters with two audit division managers Ed Joseph Tarantino received an Award for day activities . of-dury at 55 West 125th Street in Harlem, New Glister and Charles Delvarco. York City . In the bottom photo, taken at the

I 74 75

Labor Management Activities Equal Employment Opportunity The IRS formalized its Upward Mobility improved quality and effectiveness of instruc- In early February, the IRS concluded a 2- The IRS continued to increase equal em- program in August, 1974, to place special tion . Under the restructured training ar- year collective bargaining agreement with ployment opportunity and to insure Upward emphasis on providing opportunities for rangement, a new revenue agent will be able the National Treasury Employees Union Mobility opportunities for all employees, employees in grades GS-1 through 7, or to examine various tax returns with minimum (NTEU) covering 2,200 employees in the While total Service year-end employment the equivalent, to increase their effective supervision after 25 weeks of classroom and headquarters office . It provides for bilateral increased by 13.6 percent between 1974 utilization in the tax administration area . on-the-job training instead of 32 weeks, We union-management decision-making in per- and 1975, minority employment during the Although the program was not fully imple- estimate that about 1,200 agents will be sonnel policies and practices, such as same period increased by 19.6 percent, mented until late in the year, approximately trained next year with projected salary sav- I promotions and performance evaluations. from 11,971 to 14,321 . This included a 36 800 employees actively participated in ings of $1 .2 million and per them savings of training under the program , $360,000. At the close of 1975, the IRS and NTEU percent increase in employment of Spanish- were involved in the process of negotiating speaking employees, from 1,609 to 2,188 . Taxpayer Service Specialist s This year, another 31 experienced revenue a new multicenter agreement covering On December 14, 1974, the IRS officially agents were trained for computer audit 29,000 employees in the Data Center, Na- recognized 1975 as "International Women's In recognition of increased emphasis upon specialist positions . By the end of 1975, 104 tional Computer Center and in 9 of the 10 Year" and programs and activities were providing quality assistance to taxpayers, IRS employees were qualified to perform the service centers . Overall, the National Office planned throughout the Service to focus the IRS developed the new taxpayer serv- complex auditing duties required by today's agreement, the multicenter agreement, and attention on the potential and accomplish- ice specialist series . The program estab- sophisticated computer-prepared tax re- the multiregional and muilidistrict agree- ments of IRS women . During the year, Ms . lished taxpayer service occupations with turns . ments cover over 62,000 IRS employees . Anita Allpern was appointed Assistant Com- expanded duties and responsibilities, The collective bargaining agreements con- missioner (Planning and Research), making higher-favel qualification requirements, an cluded between the IRS and employee her the first career woman in the IRS and improved grade structure and more com- Paraprofessional Position s the Department of the Treasury to reach prehensive training . To enhance these oc- unions renewed the need for training of By the end of 1975, over 1 .000 paraprofes. managers and supporting staff people on grade GS-18 . cupations, the IRS developed new position descriptions, an amendment to the qualifi- sional positions had been established and their supervisory responsibilities under the filled in the Audit . Collection, and Intelli- agreements . cation standard, and incumbent selection and screening criteria. gence Divisions . These employees, in Orientation sessions were held in all regions grades GS-4 through GS-7, perform work for first-line and middle managers, and that would otherwise be* done by profes. three executive seminars on union relations sional and technical employees at grades were given to field and National Office Taxpayer Relations Training GS-9 and above . This program has re- officials . We also conducted training for During 1975, a special effort was also made sulted in savings of over $4 .5 million dollars I personnel officers to assist them in advising to improve the effectiveness of taxpayer rela- plus more effective use of the higher-level managers on union relations matters . tions skills, knowledge and abilities of the profes- . Most new and certain incumbent sional and technical workforce Additional specialized courses in grievance employees in the collection activity who have . handling and arbitration have been devel- direct dealings with the public attended tax- oped and will be used in Service-wide payer relations training which covered inter- training next year . personal communications, taxpayer rights and responsibilities, and how to resolve is- I sues with taxpayers in a fair and helpful man~ ner , Employment of the Handicapped The IRS continued to increase its employ- ment of the handicapped in all occupations . Revenue Agent Trainin g By the end of calendar year 1974, 1,629 handicapped persons were employed by Commissioner Alexander confers with Jesse L The IRS-designed revenue agent training the IRS . Of this number, 107 were blind Paredes, of the,Audit Division, shortly after program (units 1, 11, 111 and IV) was evalu- individuals working as taxpayer service appointing him as National Spanish Speaking ated by the American Council on Education representatives in IRS districts and as tax Program Coordinator. Spanish Speaking (ACE) in March and found to be of such examiners in the service centers . coordinators in the National Office, regions, and high quality that ACE has recommended to district offices serve as a local point for helping colleges and universities the granting of six Every year, the IRS focuses attention on the to prepare and implement affirmative action upper division credit hours to IRS employ- valuable contributions of IRS handicapped plans covering recruitment, job restructuring, ees who successfully complete the training employees and their ability to perform top- training and career development which enhance program and who subsequently enroll in level work by presenting an IRS Outstand- opportunities for Spanish Speaking Americans universities to pursue a masters degree in Ij ing Handicapped Employee of the Year within the Service . tax law. Award . This year, Charles E . Johnson, com- puter operator at the Andover Service Cen- The revenue agent training program has ter, received the award . been revised to reduce the classroom portion of training from 141/2 weeks to 12 weeks with 7 6

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Advisory Commissionees Advisory Art Advisory Pane l Grou p Chapter 10 Groups Since 1968, a 12-member panel of art In January 1975, the Commissioner named experts including museum directors, schol- 14 prominent accountants, attorneys, busi- ars, and art dealers, has helped the Service Appendix ness executives, educators and public in- determine the correct value of works of art terest representatives to serve as his Advi- donated to charity or included in taxable sory Group for 1975. gifts or estates . IRS Organizational Chart The group met with the Commissioner twice In its seven years of operation, the panel before the fiscal year ended to provide him has reviewed estimates valued at more than Map Of Regions, Districts, and and his staff with useful views and criticism $145 million and has recommended valua- Service Centers of IRS operations so that the Service could tion adjustments of over $35 million . At the Commissioners of the IRS do a better job of serving the public . three meetings held during 1975, the panel (1862-1975) Members of the group are selected on the reviewed works of art valued in tax returns basis of suggestions by professional and at approximately $27 million and recom- Principal Officers of the IRS as public interest organizations in the tax field, mended substantial adjustments in approxi- of June 30, 197 5 IRS officials around the country and other mately 60 percent of the cases . groups and individuals interested in sound Audit Charts and Tables tax administration . Members of the Com- Statistical Table s 4 missioner's Advisory Group serve for one Index calendar year without compensation . Small Business Advisory I Commiftee As a step towards recognizing and dealing with the particular tax problems of small businessmen, the Service announced the organization of a new Small Business Advi- sory Committee, The Committee held its first meeting in the fall of 1975.

i

An IRS retirement gathering in December 1974 event . (L to R) Sheldon S . Cohen, 1965-69; brought five Internal Revenue Commissioners Johnnie M . Walters, 1971-73 ; Donald C . together, and this picture records the notable Alexander, 1973 to present; Mortimer M . Caplin. 1961-64; Randolph W. Thrower, 1969-71, 7 8 79

Organizatio n Internal Revenue Regions and District s

0 Commissioner of 0 District Director * National Computer - Regional Boundary Key ; Internal Revenue Conte, 11a.p., am (Washington, D .C .) (Martinsburg, W. Va. ) of tha Trantaury E Regional 0 Service Center * IRS Data Center .... District Boundary C inninnissioner Commissioner (Detroit, Mich .) Deoputy ------c.- ' Commissioner National Offic e A-cl.t . rhI.f C-1 hislons Aaalatarn Astailland Aindalund Assistant C.-Il c-l'u. ..' Conadfitakdrai r 7C=Wtadna, Coannnissio n (Mcounts."o-. (Ennin.". P .n. ) Ad'.. Und.11. .. E-PI ftaa-h T,, Coun om..d.fi .n .) ,tig .j .n

Divisions DIviskans 011IMema A--III* ACDOU'nuat In d F,dd,,. . A1.111I . Inland] AL11 I-nat Individual T. I Chlaf I P7*'*I,g ""n"na" -dft M-,- nedlnjdal ) c I Intarnat S-nry D-nn. C,,-nd'. T. T...... S-- ~Mtnddge-t Ladw- T.F . . .. Olviadn. rad-I ftbliesd .. . Inneadn- Tnnning Int--1 A.-.h .nd ond .d .na 0 Rdwnd Lad .l.tonland T.. a An,IySj, Ad"Rn'S-I,n, . Idn'.. Tax Sot R-Ign A.M-t IRS Data Ca-r A"Itfian chladcour- D.I .11, McnigInn 1. the C.""hation ., (P.bhd ".I,) DIlkans n.d.n., Pattall.AA Ir . C-P-C.nn,r as Divildon ctn=- T. Ga- 1.1. 1 ..IfinabuT. Sann.a.

Included In Alaska Hawaii Office of International FFI-9-1-1-M-01. Western Regio n Operations, National Office Fiat Rglonal Caramission. 1 Rgindau C.-I. office aa . .1 (7) Region and District Legend: AC_,.Irtmit. It"1111 s. 11. cm .. Id ..r. (10) Ac covnnsnd T . D Contra] Region Southeast Region 29 Now Orleans, La , North Atlantic Region Western Region Umn. T . 30 Oklakhoma rity, S.-c.-. --,I U ,,I,,n 1 Cincinnati . Ohio 14 Atlanta Ga . 42 Albany N.Y . 55 Anchorage, Alaska 2 Cleveland, Ohio 1 5 Birrrtin~hzdn, Ala. 43 Ando4r, Mass. 56 Boise, Idah o Ad.1-nd.n MIMI- T. Cd. n 31 WicOhla- its. Kans. 44 Augusta 57 A L,Iig.fi.n 3 Covington . Ky. 16 Chamblee, Ga . . Maine Fresno, Calif. M'drIatralon (Cincinnati SC) 17 Columbiansb~' S. .C..C Midwest Region 4 -1,, I.Ios'..ton, Mass . 58 Helena . Mont . A.d n ID111 .1-- -- 4 Detroit, Mich. 18 Gres 47 Buffaloklyn, N,Y. 59 Honolulu, Hawall .1--nd Data C.-,.I .n --ad.n 5 Indianapolis, Ind. 19 Jackson Mi 6 32 Aberdeen, S . Dak . N.Y . 60 Los Angeles. Calif . E. . . p and Am,nbng A On, 6 Louttvills, Ky. 20 Jackson~ll Is ~Ia . 33 ChicagDOS o JOWIS 48 Burlington . Vt . 61 Ogden Utah P-ng is, T;nn. 34 as, 49 Hartford. Conn. 62 Phoenj Ariz . n .Z0 I..n...... Co.- 7 Parkersburg, W, Va . 21 Momph T.- San,- Empl- PI.na and . 35 Fargo, N. Dak. 50 Holeville, N.Y . 63 Poriland . Ore, U. 1. Mid-Atlantic Region 22 Nashville, Tenn 36 Kansas City. Mo. (Brookhaven SC) 64 Reno, Nev . o"a-atims 8 Baltimore. Md. Southwest Region 37 Milwaukee . Wis. 51 Manhattan, N.Y . 65 Salt Lake City, Ut h Inn' .Z .In . 9 Newark, N .J. .23 Albuquerque, 38 Omaha, Neb . 52 New York. N.Y . 66 San Francisco, C:11f . .,dat,a, S-iv, 10 Philadelphia, Pa . N . 39 Springfield, 111, 53 Portsmouth, N.H . 67 Seattle, Wash . 1 1 P 1tISb rgh,U Pa . 2,4 Austin,MaxaxT . 4 St. Louis, Mo. 54 Providence, R .I. 2 Richmond, Va, 25 Cheyenne, Wyo, 41 St. Paul, Minn. 13 Wilmington, Del, 26 Dallas, Tex. 27 Denver, Colo . 28 Little Rock, Ark. 80 8 1

S. Boutwell Historical George John G. Capers Sheldon S. Cohen Office of Commissioner of Internal List of Massachusetts South Carolina Maryland I July 17, 1862/Mar. 4, 1863 Revenue Created by Act of Congress, July Commissioners June 5, 1907/Aug . 31, 1909 Jan . 25, 1965/Jan . 20, 1969 1, 1862 Joseph J . Lewi s Royal E. Cobal t of Randolph W. Thrower In addition, the following were Acting Internal Pennsylvania Virginia Georgi a 30, 1865 Commissioners during periods of time Revenue Mar. 18, 1863/June Sept. 1, 1909/Apr . 27, 1913 Apr . 1, 1969/June 22, 1971 when there was no Commissioner holding William Orton William N. Osborn Johnnie M . Walters the office : New York North Carolin a South Carolin a John W. Douglas, of Pennsylvania from July 1, 186510ct . 31, 1865 Apr. 28, 1913/Sept. 25,1917 Aug . 6, 1971/Apr. 30, 1973 Nov. 1, 1870, to Jan . 2, 1871 ; Henry C . Edward A . Rollin s Daniel C . Rope r Donald C . Alexander Rogers, of Pennsylvania, from May 1 to New Hampshir e South Carolina Ohio May 10, 1883, and from May 1 to June 4, Nov . 1, 1865/Mar . 10, 1869 Sept . 26, 1917/Mar . 31, 1920 May 25, 1973 1907 ; John J. Knox, of Minnesota from Columbus Delano William M. Williams May 11 to May 20, 1883 ; Robert Williams, Ohio Jr ., of Ohio, from Nov . 28 to Dec . 19,1900 ; Alabam a . West, of Kentucky, from Apr. 12 Mar . 11, 1869/Oct . 31, 1870 Apr . 1, 1920/Apr. 11, 1921 Millard F Alfred Pleasonto n to May 26, 1921 ; H . F . Mires, o f David H . Blal r Washington, from Aug . 16 to Aug. 19, New York North Carolin a Jan . 3,1871/Aug . 8,1871 1930 ; Pressly R . Baldridge, of Iowa, from May 27, 1921/May 31, 1929 May 16 to June 5, 1933 ; Harold N. Graves, John W . Dougla" Robert H. Lucas of Illinois, from Jan . 23 to Feb . 29, 1944 ; Pennsylvania Kentucky John S . Graham, of North Carolina, from Aug . 9,1871/May 14, 1875 June 1, 1929/Aug . 15,1930 Nov . 19, 1952, to Jan . 19, 1953 ; Justin F . Daniel D. Pratt David Burnet Winkle, of New York, from Jan . 20 to Feb. Indiana Ohio 3, 1953 ; 0. Gordon Delk, of Virginia, from May 15, 11875/July 31, 1876 Aug . 20,1930/May 15,1933 Nov . I to,Dec . 4, 1955, and from Oct. 1 to Green B . Raurn Nov . 4, 1958 ; Charles 1 . Fox, of Utah, from Guy T. HeleverIn g Jan . 21 to Feb . 6, 1961 ; Bertrand M . Illinois Kansas Aug . 2, 1876/Apr. 30, 1883 Harding, of Texas, from July 11, 1964 to June 6, 1933/Oct. 8, 1943 Jan . 24, 1965 ; William H . Smith of Virginia, Walter Evan s Robert E. Hannegan from Jan . 21 to Mar. 31, 1969 ; Harold T . Kentucky Missouri Swartz of Indiana, from June 23 to May 21,1883/Mar . 19,1885 Oct. 9, 1943/Jan . 22, 1944 Aug . 5, 1971 ; and Raymond F . Harless of Joseph S. Miller Joseph 0 . Nunan, Jr. California from May 1 to May 25, 1973 . West Virginia New York March 20, 1885/Mar. 20, 1889 Mar. 1, 1944/June 30, 1947 John W. Maso n George J . Schoeneman West Virgini a Rhode Islan d Mar. 21, 1889/Apr . 18,1893 July 1, 11947/July 31, 1951 Joseph S. Mille r John S. Dunlap West Virgini a Texas Apr. 19, 1893/Nov. 26, 1896 Aug . 1, 1951/Nov. 18, 1952 W . St. John Forman T. Coleman Andrews Illinois Virgini a Nov . 27, 1896/Dec. 31, 1897 Feb . 4, 1953/Oct. 31, 1955 Nathan 0. Scott Russell C. Harrington West Virgini a Rhode Islan d Jan . 1, 1898/Feb. 28, 1899 Dec . 5, 1955/Sept . 30, 1958 George W . Wilson Dana Latham Ohio California Mar . 1, 1899/Nov. 27,1900 Nov . 5, 1958/Jan . 20, 1961 John W. Yerkes Mortimer M. Caplin Kentuck y Virginia Dec . 20,1900/Apr. 30,1907 Feb. 7,1961/July 10, 1964

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ill 82 1 83 111i

Principal National Office Accounts, Collection and Technical Division Directors : Taxpayer Service General Litigatio n Officers as of Assistant Commissioner J . Walter Feigenbaum Office of the Commissioner Lawrence B . Gibb s June 30,1975 Assistant Commissioner Criminal Ta x Commissioner Robert H . Terry Deputy Assistant Commissioner David E . Gaston S . A . Winborn e Donald C, Alexander Deputy Assistant Commissioner Refund Litigation Deputy Commissioner James 1. Owens Division Directors : Jerome D . Sebastian William E. William s Director, Program Planning Corporation Tax John W. Holt Tax Court Litigation Assistant to the Commissioner & Review Staff Dennis J . Fox Burke W . Willsey Stephen J . Stalcup Individual Tax Aaron Feibel General Legal Services Assistant to the Deputy Commissioner Division Directors : Joseph J . Stengel Robert B . Nelson Collection Tax Forms and Publications Thomas L . Davis Roy J . Linge r Disclosure Assistant to the Commissioner Harold T . Flanagan (Public Affairs) Taxpayer Service Stanley Goldberg Employee Plans/Exempt Interpretative Philip L. Rothchil d John L . Withers National Computer Center, organizations Administration Martinsburg, W. Va . Legislation and Regulations Assistant Commissioner James F . Dring William E. Palme r Alvin D . Lurie Assistant Commissioner Administrative Services Joseph T. Davis Accounts and Data Processing Deputy Assistant Commissioner Vacan t Margaret M . Richardso n Director, Program Staff Theodore C . Rademaker Julius H . Lauderdale IRS Data Center, Detroit, Mich . Division Directors : James E . Daly, Jr. Employee Plans Regional and District Division Directors : Officer s Facilities Management Fred J . Och s Inspection Exempt Organizations Leo C. Inglesby Central Region Fiscal Management Assistant Commissioner Joseph A.Tedesco Warren A. All Regional Officers at 550 Main Street, Alan A . Beck Bate s Actuaria l Cincinnati, Ohio 45202, unless a different Personnel Deputy Assistant Commissioner Donald S . Grubbs, Jr. address is indicated Billy J . Brown William C . Rankin, Jr . Trainin g Division Directors : Office of Chief Counsel Regional Commissioner Richard C. McCulloug h Internal Audit Chief Counse l Leon C . Gree n Rudolph W Tax Administration Advisory Services . Arena Meade Whitaker Assistant Regional Commissioners : I Gordon C . Hill, Jr . Internal Security Deputy Chief Counsel Administratio n Deputy Equal Employment William J . Huliha n Charles L . Saunders, Jr . Arthur J . Collinson Opportunity Officer Technical Advisor s Audit Barbara R. Thompso n Planning and Research to Chief Counsel Jack P . Chivatero Assistant Commissioner David E . Dickinson Accounts, Collection Compliance Anita F. Alpern Daniel S . Folzenlogen & Taxpayer Service Division Directors : Staff Assistant L. Stanley Baker Assistant Commissioner to Chief Counsel S. B. Wolfe Research and Operations Analysis Appellate Vacan t Richard A . Fisher Claude C. Rogers, Jr . Deputy Assistant Commissioner Chief Counsel (Litigation) Harold A . McGuffin Tax Systems Redesign Associate Intelligence Donald G . Elsberry Robert A. Bridges Harold B . Holt Division Directors: Legislative Analysis Associate Chief Counsel (Technical) Employee Plans/Exempt Appellate Richard M . Hah n James C . Stigamire Claude D . Baldwin Organizations Statistics Assistant Chief Counsel Merlin W. Hey e I Intelligence Wigrize r Thomas J. Clancy Vito Natrella Leon G . District Directors: Internal Management Documents Special Assistan t Cincinnati, Ohio 45201 Audit to the Chief Counsel Dwight L . James, Jr . John L. Wedick, Jr. Jeremiah R . Thompson Lester Stein Cleveland, Ohio 44199 Office of International Operations Robert J . Dath Joseph G . McGowan Detroit, Mich . 48226 Roger L . Plate

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84 85

Indianapolis, Ind . 46204 Regional Counsel Southwest Regio n Midwest Regio n James W. Caldwell Robert L . Liken All Regional Officers at 11 14 Commerce All Regional officers at 1 North Wacker Louisville, Ky. 40202 Regional Inspector St ., Dallas, Tex . 75202, unless a different Dr., Chicago, Ill . 60606, unless a different Paul F . Niederecker Emanuel L . Schuster address is indicate d address is indicated Parkersburg, W . Va . 26101 T. Blair Evan s Southeast Regio n Regional Commissioner Regional Commissioner Walter T. Coppinge r Edwin P . Trainor Director, Cincinnati Service Center, All Regional Officers at 275 Peachtree St. : Ky 4101 2 N .E ., Assistant Regional Commissioners Assistant Regional Commissioners : Covington, . Atlanta, Ga . 30303, unless a different Administratio n Administratio n Patrick J . Ruttle address is indicated Raymond Asturnian David S . Burckman I Regional Counsel Audit Audit David E . Mills Regional Commissioner Howard C. Longley John H . Rauen, Jr . Regional Inspector Andrew J . O'Donnell, Jr. John E . McManu s Assistant Regional Commissioners Accounts, Collection, Accounts, Collection : & Taxpayer Service & Taxpayer Service Administratio n George M. Oliver Thomas J . Laycock Philip N. Sansotta Mid-Atlantic Regio n Appellate Appellat e All Regional Officers at 2 Penn Center Audit Paul D . Williams Bernard L . Hardiek Philip J . Sullivan Plaza, Philadelphia, Pa . 19102, unless a Intelligence Intelligence different address is indicated Accounts, Collection Robert D . Elledg e Robert J . Bus h & Taxpayer Service Regional Commissioner William E . Douglas Employee Plans/Exempt Organizations Employee Plans/Exempt Organizations William D . Waters Appellate Percy P. Woodard, Jr . John Edward s Assistant Regional Commissioner Kenneth F . Montz District Dlrectors~ District Directors : Administratio n Intelligence Albuquerque, N . Mex . 87101 Americo P . Attorri Arturo A . Jacobs Aberdeen, S. Dalk . 57401 Edmund J . Vitkus John B .Langer Audit Austin, Tex . 78701 Employee Plans/Exempt Organizations Robert M . McKeever Chicago, Ill . 60602 Paul H . Thornton Nelson L. Howe r Little Rock, Ark. 72203 Charles F. Miriani 11 Accounts, Collection District Directors: & Taxpayer Service Emmett E . Cook, Jr . Des Moines, Iowa 50309 Atlanta, Ga . 30303 Donald J . Porte r I Leroy C . Gay John W . Henderson New Orleans, La . 70130 Appellate Roger F . Shockcor Fargo, N . Dak . 58102 Birmingham, Ala . 35203 Mitchell E . Premis, Jr . Reuben H . Saideman Dwight T. Baptist Denver, Colo. 80202 Intelligence Gerald L . Mihlbachler Springfield, Ill . 62704 Jacksonville, Fla. 32202 Ira S . Loe b 11 Vacan t Charles 0 . DeWitt Cheyenne, Wyo . 82001 Employee Plans/Exempt Organizations Bobby G . Hughes Milwaukee, Wis . 53202 Greensboro, N .C . 27401 Lawrence M . Phillips James J . Ryan Robert A .LeBaube Dallas, Tex. 75202 Alden M . McCanless Omaha, Neb . 68102 District Directors : Jackson, Miss. 39202 Everett Loury William Daniel Oklahoma City, Okla. 73102 Baltimore, Md . 21201 Clyde L . Bickerstaff St . Louis, Mo . 63101 Gerald G . Portney Nashville, Tenn . 37203 Richard C . Voskull James A. O'Hara Wichita, Kans. 67202 Newark, N .J . 07102 Maurice E. Johnso n St . Paul, Minn . 55101 Elmer H . Kiinsman Columbia, S .C . 29201 C . Dudley Switzer Harold Bindsel l Director, Austin Service Center, Philadelphia, Pa . 19108 Austin, Tex. 7874 0 Director, Kansas City Service Center James T . Rideoutte Director, Atlanta Service Center, Leonard E . Sernrick Kansas City, Mo . 64170 11 Pittsburgh, Pa . 15222 Chamblee, Ga. 30006 Roy D. Clark William B . Hartlag e Regional Cou nsel Cornelius J . Coleman William B . Riley Regional Counsel Director, Memphis Service Center, Richmond, Va . 23240 Regional Inspector Frank C . Conley James P . Boyle Memphis, Tenn. 3811 0 Claude A. Kyle Paul F. Kearns Regional Inspector Wilmington, Del . 19801 William E. Mulroy James E . Quin n Regional Counsel Henry C . Stockell, Jr. Director, Philadelphia Service Center, Philadelphia, Pa . 1915 5 Regional Inspector Norman E . Morrill Dale W. Gardner

lu~ 86

North-Atlantic Regio n Western Regio n All Regional Officers at 90 Church Street, All Regional Officers at 525 Market Street, Audit Charts New York, N .Y . 10007, unless a different San Francisco, Calif . 94105 unless a and Tables address is indicated different address is indicate d

Regional Commissioner Regional Commissioner Elliott H . Gra y Thomas A . Cardoz o Assistant Regional Commissioners : Assistant Regional Commissioners : Administratio n Administration Harry J . Bodkin Warren N. Slack Audi t Audit William H . Tompkins Johnnie Robertson Accounts, Collection Accounts, Collection & Taxpayer Service & Taxpayer Service Marshall P . Cappelli John D .Johnson Appellat e Appellate Richard E . Fogwell Wallace J. Spencer, Jr . Intelligence Intelligence Harry P . McCal l Richard C . Wassenaar Employee Plans/Exempt Organizations Employee Plans/Exempt Toomer F. Car r Organizations District Directors : Ralph F. Albrech t Albany, N .Y . 12206 District Directors: George S. Alberts Anchorage, Alaska 99510 Augusta, Maine 04330 Charles E. Rodd y John J. Jennings Boise, Idaho 83702 Boston, Mass . 02203 Howard T. Martin John E. Foristall Helena, Mont . 59601 Brooklyn, N .Y . 11201 Frederick C. Nielsen Charles H. Brennan Honolulu, Hawaii 96813 Providence, R .I . 02903 Robert M. Cutt s John J . O'Brien Los Angeles, Calif. 90012 Buffalo, N .Y . 14202 William H . Connett Herbert B . Mosher Seattle, Wash . 98121 Burlington, Vt . 05401 Michael D . Sassi Caro lyn K . Buttolph Phoenix, Ariz . 85025 Hartford,' Conn . 06103 Prescott A. Berry Joseph J. Conley, Jr . Portland, Ore . 97204 Manhattan, N.Y . 10007 Ralph B. Short Philip E. Coates Reno, Nev . 89502 Portsmouth, N .H . 03801 Gerald F . Swanso n Frank T . Murph y Salt Lake City, Utah 841 10 Director, Andover Service Center, Roland V . Wise Andover, Mass. 0181 2 San Francisco, Calif . 94102 M . Eddie Heironimu s Francis L . Browit t Director, Brookhaven Service Center, Director, Ogden Service Center, I Holtsville, N.Y. 11742 Ogden, Utah 84201 Henry P . Seufert John 0. Humme l Regional Counsel Director, Fresno Service Center, Theodore E. Davis Fresno, Calif. 9373 0 Regional Inspector Fredric F . Perdue Sidney M . Wolk Regional Counsel Emory L. Langdon Regional Inspector Frederick R . Rowe, Jr.

)"j) ri 88 89

Table I .-Audtt Staff Years Realized, FY 1975 Table 2 .-Returns Filed, Examinations, and Audit Coverag e Year s Returns Planned - Actual I Percen t Filed Returns Examined FY 1975 Revenue Agents Percent 14,079 14,265 101 .3 Revenue Tax Cover- United States CY 1974 Agents Auditors Total age North-Atlantic 2,873 2,892 100 .7 Indivikml, total 8IA71,762 355,170 11,4183,3111111 1 A'K558 2 2 Mid-Atlantic 1,867 1,895 101 .5 NB Under $10,000. Total 43.216 .487 41,43D 740 .872 7B2,302 1 .8 Southeas t 1,558 1,597 102 .5 NB Under $10,000-Stanclard 30,279.027 6.967 213,942 220,909 .7 NS Under $I 0,000-fternized 12,937,460 526,930 561 Centra l 1,554 1,565 100 .7 34.463 .393 .4 3 NEI $10,000 Under S50.000 27,765j47 79.507 .609,952 689 .459 ~2~5 Midwest 2,051 2,061 100 .5 NB $50.000 and Over 471,803 45,313 13 .917 59,230 1 :2.6 1,771 1,806 102 .0 Southwes t B Under $1 0,GDO 4,724,378 49.067 86,322 135,389 2 .9 .9 Western 2,295 2,339 101 B $10,000 Under $30,000 41,293,0911 71 .710 25 .834 97,5" 2 .3 010 110 110 100 .0 B $30,000 and Over 800.249 68,143 6.491 74,634 9 .3 Tax Auditors Fiduciary 1,456,311 lisse 199 11,757 .8 United States 4,636 4,666 100 .6 Corporation, tots] 1,744,068 1&%240 1,849 1 Kno &9 Assets not reported North-Atlantic 777 795 102 .3 130.611 6 .207 69 6,276 4 .0 Under $50,000 631,455 19,171 997 20,168 3 .2 Mid-Atlanti c 568 585 103 .0 $50,000 Under $ 100.0130 250.030 16,230 393 16.623 6 .7 630 653 103 .7 Southeast $100,000 Under $250,000 319,793 23,478 107 23,585 7 .4 451 440 97 .6 Centra l $250,000 Under $500.01)(1 176,333 24,223 40 24.- 263 _~_3 8 Midwest 572 556 97 .2 $500.0DO Under $I Mil. 106,724 19,760 20 19.780 18 .5 Southwes t 517 522 101 .0 $1 Mil. Under $5 Mil 90.871 28,115 16 28,131 31 .0 Wester n 1,053 1,039 98 .7 $5 Mil. Under $10 Mil. 14,210 5,184 3 5,187 36.5 $10 Mif . Under $50 Mil . 17.508 6,306 1 6,307 _T6._o 01 0 68 76 111 .8 $50 Mil . Under $ 100 Mr . 2,845 I . W 1,543 54 .2 Other (Permanent) 3 $100 Mil . and Over 3,688 3,024 3 .026 82. 1 6,765 6,477 95 .7 United States Eal total 215,537 40,591 11,357 40,948 22.7 North-Atlantic 1,214 1,137 93 .7 Gross Estate Under $300,000 186,468 22,745 7,369 30 .114 16.2 Mid-Atlantic 792 786 99 .2 Gross Estate $300,000 and Over 29 .069 17,846 988 18,1134 64~1 1 Southeast 846 731 86 .4 Gift 250,477 Cm 3,1111 13.073 5 .1 Centra l 731 714 97 .7 incta a, Eaurre and Gift, Total KM1156 670,514 1,495.711 2.007,225 Z43 Service Center Examination Inc ., Est . and Gift 104 .698 .1 2 Midwest 975 955 97 .9 Incorne, Pat and Gift. Grand Total K946,155 V0,514 1,406,7" 2,171,923 2.55 Southwest 821 815 99. 3 Excift 7K382 74,493 12,774 95,119 12 .1 1,248 1,220 97 .8 Wester n Dstrict 74,493 12.774 87,627 010 138 119 86. 2 service Center - - 7,852 Employrnent 24,739l 01,250 21111,6113 110,033 Operating Financial Plan . .5 Report of Average Positions Realized and service cant . Dialito"I.: Costs Incurred . (Includes Regional Analysts) . Total 1,329 .305 - ~ Other includes ARC Audit, Executiv e Assistant, Chief of Audit and Clerks . District Type Returns 112,550 service Center Urnite d 1 .216,755 Excludes special occupational and adcohol and tobacco taxes . 90 9 1

Table 3-Accomplishments vs Plan, FY 1975 Table 4-Accomplishment vs Plan, FY 1975 Revenue Agents Tax Auditors

Desys Returns Percent Percent of Plan Desys, Returns of Plan Tax Class Plan Actual Plan Actual Desys Returns Tax Class Plan Actual Plan Actual Desys Return s Individual, Total 2,805 2,896 303,300 355,170 103 11 7 Individual, total 2,101 2,419 1,403,300 1,483,388 115 106 Form 1040-Standard 2 31 385 6,967 1,550 1,81 0 Form 1040-standard 155 172 187,175 213,942 ill 11 4 NB under $10,000-itemized 172 153 26,010 34,463 89 133 NB under $10,000-itemized 546 646 459,000 526,930 11811 5 NB $10,000 under 50,000 406 394 61,320 79,507 97 130 NB $10,000 under $50,000 786 957 613,970 609,952 122 99 NB $50,000 and over 370 434 41,625 45,313 117 109 NB $50,000 and over 35 36 17,140 13,917 103 8 1 6 under $10,000 531 470 50,155 49,067 89 98 B under $10,000 460 465 100,150 86,322 101 86 B $10,000 under $30,000 602 631 59,190 71,710 105 121 B 10,000 under $30,000 77 109 16,915 25,834 142 153 6 $30,000 and over 723 783 64,615 68,143 108 105 B $30,000 and over 41 34 8,950 6,491 83 73 Fiduciary 117 97 13,800 11,558 83 64 Fiduciary - - - 199 Corporation, Total 3,360 3,406 149,400 153,240 101 103 Corporation 26 18 5,500 1,649 69 30 No Balance Sheet 53 44 4,160 6,207 83 14 9 Estate 38 37 7,600 8,357 97 11 0 Under $50,000 175 198 19,180 19,171 113 10 0 Gift 11 9 3,300 3,118 82 94 $50,000 under $100,000 127 163 13,260 16,230 128 12 2 Income, estate, gift $100,000 under $250,000 223 253 22,230 23,478 . 11.3 106 Total Z176 Z483 1,419,700 1,496,711 114 105 $250,000 under $500,000 243 292 20,660 24,223 120 11 7 Excise 18 18 10,800 12 .774100 11 8 $500,000 under $1 Mil . 259 272 18,860 19,760 105 10 5 Employment 3~ 35 23,400 29,683 95 127 $1 Mil . under $5 Mil . 596 558 31,580 28,115 94 8 9 Exempt Organization 17 10 2,931 1,298 59 4 4 $5 Mil. under $10 Mil. 192 171 6,720 5,184 89 7 7 Pension Trust 4 1 1,359 80 25 6 $10 Mil. under $50 Mil . 381 330 8,315 6,306 87 76 Direct examination staff years, $50 Mil. under $100 Mil . 144 154 1,685 1,542 107 9 2 $100 Mil . and over 965 972 2,750 3,024 101 11 0 Estate 571 577 36,100 40,591 101 11 2 Gift 52 56 7,700 9,955 108 129 Income, Estate and Gift Total 6,904 7,032 510,300 570,514 102 11 2 Excise 177 180 62,500 74,493 102 11 9 Employment 223 231 72,500 81,250 104 11 2 Exempt Organization 198 218 14,919 20,870 110 140 Pension Trust 108 110 41,624 65,482 102 157 Joint Compliance 98 54 55 Special Enforcement Program 314 272 - - 87

Direct examination staff years. 9 3 92

Table 6 .-Audit Attrition-Revenue Agents and Tax Auditors, FY's 1973-197 5 Table S.-Audit Recruitment-Commitments and Appointments, Frs 1973-1975 Region FY 1975 FY 1974 IFY 197 3 Region FY 1975 FY 1974 FY 197 3 Revenue Agents Revenue agent s United States 981 956 1,124 United States 597 3,376 1,372 North-Atlantic 160 156 180 North-Aflanti c 77 512 27 2 Mid-Atlantic 118 133 19 1 Mid-Atlantic 34 492 22 0 Southeast 115 115 12 7 Southeas t 143 491 226 Central 112 101 143 Centra l 30 206 14 7 Midwest 178 159 177 Midwest 27 596 160 Southwes t 137 120 120 Southwes t 25 529 il l Wester n 152 162 172 Western 261 550 236 01 0 9 10 1 4 Tax auditors Tax Auditors United State s 1,150 Z031 504 United States 484 512 382 NoNh-Atlanti c 205 350 94 North-Atlantic 64 81 82 Mid-Atlantic 53 403 48 104 Mid-Atlantic 59 76 53 Southeast 228 305 Southeast 77 70 4 2 Centra l 130 84 2 6 Centra l 40 40 5 0 Midwest 112 283 8 2 Midwest 63 82 5 1 Southwes t 197 4 8 2 Southwest 53 66 50 Western 422 409 10 Western 125 96 5 3 includes Estate Tax Attorneys and Valuation 010 3 1 1 Engineers, 94 9 5

Table 7 - Revenue Agents and Tax Auditors (District Audit Divisions) I Table 7 - Revenue Agents and Tax Auditors - Continued

Percent of Returns Examined Percent of Dollar Recommendations (Millions) By Type of Tax By Type of Ta x FY 1975 FY 197 5

Estate 2.2% Corporation 6.0% Estate 10.9%

All Othe r Corporation Gift 0.6% 57.1 % Excise 3 .8% Employment 4.9% Individual and Fiduciary 81 .7% All Other Gift 1 .3% Excise 2.0% Employment 3.9 % Total returns examined 2,265,425

Individual and .8% Re'enue Agents and To, Auditors (District Audit Total Dollar Fiduciary 24 Divisions)- Recommendations (Millions) $5,13 4

Percent of Time Spent on Examinations Percent of Collections By By Type of Tax Type of Ta x FY 1975 FY 1975

Estate 5 .8 % Estate and Gift 1 .6% Corporation 32.3 % Corporation 18 .0 %

Excise &2% Ail Other Gift .6% Employment 24.5 % Excise 1 .9% Employment 2.5% OlherG.0 % Individual and Individual and Fiduciary 50.9% Fiduciary 54.7 %

Direct Examination Time Total Collections (Billions) $286.2 (Days) 2,674,594

Excludes S-ice Center. Pension Trust and Exempt Organization Returns

_.i 96 97

Table B .-Large Deficiencies Recommended ($100,000 & over) Table Returns and Dollars, FY's 1973-197 5 Large 9Deficiencies ($100,000 and over) Percent of Relationship to Total Tax (District Audit Divisions) FY 1975 FY 1974 FY 1973 Region Total dollars Returns U.S . by Year recommended United States 5,137 5,731 5,152 (millions) 1 North-Atlantic 1,122 1,436 82 8 FY 1975 $5,134 Mid-Atlanti c 797 703 67 4 Southeas t 633 683 74 4 FY 1974 $5,84 7 Central 559 686 74 7 683 868 977 Midwes t FY 1973 $5,068 Southwest 602 625 53B Western 831 1,001 930 01 0 112 61 97 Dollar Recommendations (Millions) By Region, FY 1975 United States $3,421 .3 $4,220.9 $3,464.7 814 .4 1,241 .1 573 .5 North North-Atlanti c Atlantic Mid-Atlantic 608 .2 370.3 507 .2 74% Southeas t 396.0 385.0 326 . 3 Mid-Atlantic Centra l 415.6 509.4 427 . 9 Midwest 403.5 630.9 672. 7 Southeast Southwes t 294.5 394 .5 224 . 9 704. 2 Wester n 427.3 668.6 Central 21 .2 28.1 01 0 61 .7 69% 1 66 % 1 Regional totals do not add to U .S . Total Midwest because of special reponing procedures for large cases. Southwest EE60_58 % %

58 % Western

50 0/0

Excludes Serdca Centel . Pension Trust and Exempt organization Returns, 98 9 9

Table 10-4ndividual Returns--Accomplishments In Relation to Plan IFY 1975 Table 11 . Revenue Agents Revenue Agents Accomplishments-individual Returns (District Audit Divisions) Region Planned Actual Percent U.S. Activity Direct Examination Time (Days) IFY's 1973-1975 United States 706,783 729,768 103 Fiscal Direct Time (Days) North-Atlantic 126,457 120,261 95 Yea r Mid-Atlantic 83,970 84,343 100 1973 Southeast 86,181 98,799 11 5 Central 71,087 75,914 107 106 % 1974 Midwest 93,253 92,474 99 Southwest 98,777 108,376 11 0 103% 1975 Western 143,782 145,914 102 010 3,276 3,688 11 3 Returns Examined United States 303,300 355,170 11 7 Returns (Number ) North-Atlantic 47,300 54,142 11 5 114% Mid-Atlantic 36,300 42,131 11 6 1973 Southeast 37,100 46,206 12 5 133% Central 28,400 40,126 14 1 1974 Midwest 42,200 44,096 105 Southwest 41,800 50,298 12 0 1975 117% . Western 69,200 76,953 il l 010 1,000 1,218 122

Planned 100% 100 101

Table 12-Accomplishments In Relation to Plan Fiduciary Retums--FY 1975 Table 13-Examination Time, Returns and Doll ars-4ndivid ual and Fiduciary-FYs Revenue Agents 1973-1975 Revenue Agents Region Planned Actual Percent Region FY 1975 - FY 1974 FY 1973 Direct Examination Time (Days) Direct Examination Time (Days) United States 29,478 24,462 83 United States 754,230 586,660 529,107 North-Atlantic 9,726 7,767 s o North-Atlantic 128,028 97 .487 88,57 2 Mid-Atlantic 3,097 2,102 68 Mid-Atiantic 86,445 71,378 58,565 Southeast 2,415 2,203 9 1 Southeast 101,002 75,686 68,54 7 Central 2,917 2,253 77- Central 78,167 66,025 61,841 Midwest 4,254 3,199 75 Midwest 5,66 3 75,402 66,336 iouthwes t 2,892 2,933 101 Southwest 111,309 81,251 74,06 9 Western 4,157 3,980 96 Western 149,894 115,815 107,03 0 01 0 20 26 130 010 3,714 3,619 4,150 Returns Examined Returns Examined United State s 13,800 11,558 84 United States 366,728 311,267 265,276 North-Atlanti c 3,900 3,455 89 North-Atlantic 57,597 44,120 36,297 Mid-Atlanti c 1,400 1,133 8 1 Mid-Atlantic 43,264 34,963 30,08 9 Southeast 1,300 1,204 93 Southeast 47,410 38,406 36,63 5 7 Central 1,200 1,019 8 Central 41,145 31,394 30,11 7 Midwest 2,400 1,142 48 Midwest 45,238 44,216 35,99 3 Southwest 1,400 1,454 104 Southwest 51,752 52,862 36,25 6 Western 2,200 2,142 9 7 Western 79,095 64,120 58,52 8 9 010 010 1,227 1,186 1,35 9 Dollar Recommendations (Millions ) United .States $947.7 $896.8 $873. 65 North-Atlantic 194 .6 185.0 144. Mid-Atlantic 116.0 96.7 106. 0 Southeast 155.5 129.8 150. 2 Central 93 .4 81 .5 90 .3 Midwest 87 .4 67.8 85 .5 Southwest 96.8 102 .1 99. 1 Western 194 .9 225.9 1 B4 .7 010 9.2 8.0 13 .1 Note : Dollars may not add due to rounding .

- Individual and Fiduciary combined for comparision with prior years. I

102 10 3

Table 14-Revenue Agents Table I S .-Revenue Agents (Average Dollar Recommendations Per (Average Hours Per Return) Return) Individual and fiduciary returns by class and region FYS 1973-75 Individual and Fiduciary Returns by Class and Region FYs 1973-1975

Fiscal Years Fiscal Years 1975 1974 1973 1975 1974 1973 Class Class Total (individual & Fiduciary) *16.3 16.0 18.7 Total (individual & Fiduciary) *$2,584 $Z881 $3,293 Form 1040-Standard 10 .0 9 .4 11 .5 Form 1040-Standard 846 1,307 2,21 1 .9 13 .5 Nonbusiness, under $1 0,000-Itemized 13 .6 11 Nonbusiness, under $10,000-Itemized 2,917 2,023 1,91 2 14 . 1 Nonbusiness, $10,000 under $50 .000 11 .0 9 .3 Nonbusiness, $10,000 under $50,000 1,530 1,377 2,298 Nonbusiness, $50,000 and over 15 .9 17 .5 19 .5 Nonbusiness, $50,000 and over 5,887 7,731 8,23 7 19 Business, under $10,000 .4 22 .0 21 .0 Business, under $10,000 1,565 2 .236 1,769 Business, $10,000 under $30,000 18 .6 19 .5 21 .2 Business, $10,000 under $30,000 1,463 1,941 1,817 .4 Business, $30,000 and over 20 .9 21 .9 23 Business, $30,000 and over 3,672 4,752 5, Total Fiduciary 10 .3 Total Fiduciary 1,817 - - Region Region -16.3 16 .0 18.7 United States United States -SZ584 $Z881 $3,293 18 .9 21 .1 22 .9 Norlh-Atlantic North-Atlantic 3,379 4,194 31982 18 .4 Mid-Atlantic 16 .8 16 .9 Mid-Atlantic 2,680 2,765 31524 Southeast 16 .0 15 .5 _~7 .8 Southeast 3,279 3,379 4,101 Central 16 .7 18 .2 20 .7 Central 2,270 2,595 2,9% Midwest 16 .0 14 .2 18.5 Midwest 1,931 1,534 2,377 18.4 Southwest 15 .5 12 .6 Southwest 1,871 1,931 2,733 Western 14 .5 15 .1 16 .3 Western 2,464 3,523 3,155 International Operations 22 .5 22 .5 18 .9 International Operations 7,487 6,777 9,664

*Individual by class only for FY 1975, prior 'Individual by class only for PY 1975, prio r years Individual and Fiduciary are combined . years individual and Fiduciary are combined . **Includes Individual and Fiduciary by region for **Includes individual and Fiduciary by region comparison with prior years . for comparison with prior years .

I-L ~i, 104 105

Table 16 .-No Change Percent--4ndividual and Fiduciary--Ratum and Time-by Class and Region-IFYs 1973-1975 Table 17-Accomplishments In Relation to Plan-4ndividual Returns--IFY 1975 Revenue Agents Tax Auditors

Returns Time Region Planned Actual Percent FY FY FY FY IFY FY Direct Examination Time (Days) 1975 1974 1973 1975 1974 1973 United States 529,490 609,494 11 5 Class North-Atlantic 90,004 102,810 11 4 Total (Individual & Fiduciary) *19 23 19 *15 14 14 Mid-Atlantic 65,567 74,957 11 4 Form 1040-Standard 23 34 34 15 17 1 8 Southeast 78,220 94,621 12 1 Nonbusiness under $10,000 20 24 22 14 15 1 7 Central 45,564 54,456 120 Nonbusiness $10,000 under 50 .000 16 27 17 12 15 1 4 Midwest 64,643 .72,828 11 3 Nontpusiness $50.000 and over 18 21 17 15 13 12 Southwest 64,998 72,571 11 2 Business under $10,000 19 20 22 14 13 15 Western 112,907 128,790 11 4 Business S10,000 under $30,000 18 20 19 14 15 13 010 7,587 8,460 11 2 Business $30,000 and over .18 20 18 14 14 1 3 Returns Examined Total Fiduciary 55 5 1 United States 1,403,300 1,483,388 106 Region . ..15 Noah-Atlantic 255,600 272,630 107 United States .19 23 19 14 1 4 Mid-Atlantic 185,800 200,481 108 North-Atlanti c 19 18 16 16 13 1 3 Southeast 212,200 214,977 10 1 Mid-Atlantic 23 24 23 19 17 1 6 Central 117,700 133,G64 11 3 Southeast 18 21 20 14 13 1 4 Midwest 152,700 155,661 102 Central 19 21 22 15 15 1 5 Southwest 156,200 162,467 104 Midwest 16 25 18 13 15 1 4 Western 305,600 323,191 106 So_uthwest 21 30 20 16 16 13 - 010 17,500 20,917 120 Western 19 19 18 15 14 14 010 22 24 30 19 19 2 2

*Individual by class only for FY 1975, prior year Individual and Fiduciary are combined . -Includes Individual and Fiduciary by region for comparison with prior years .

I I

I 106 107

Table 119-Examination Time, Returns and Dollars-4ndividual and Fiduciary-FYs Table 18 . 1973-1975 Tax Auditors Accomplishments-Individual Returns Tax Auditor s (District Audit Divisions ) Region IFY 19751 IFY 1974 FY 1973 Direct Examination Time (Days) United States 609,591 513,637 418,923 Fiscal Direct Time (Days) North-Atlantic Yea r 102,820 88,025 79,259 Mid-Atlantic 74,962 69,766 50,169 1973 Southeast 94,625 73,261 51,18 1 Central 54,464 49,483 52,105 1974 Midwest 72,892 .65,605 55,22 9 Southwest 72,573 66,727 47,89 6 1975 Western 128,795 92,426 75,409 010 8,460 8,343 7,67 6 Returns Examined Returns (Number) United States 1,483,587 1,375,418 1,143,31 3 North-Atlantic 272,651 241,611 232,84 0 197 3 Mid-Atlantic 200,493 180,853 143,18 5 Southeast 21 .4,986 223,104 156,10 9 Central 133,070 . 140,174 140,89 6 1974 Midwest 155,744 156,319 144,44 5 Southwest 1975 162,475 191,953 118,938 Western 323,250 224,069 189,568 010 20,918 17,335 17,33 2 Dollar Recommendations (Millions) . Planned 100 % United States $325.9 $273 .3 $248. 3 North Atlantic 60.2 54 .5 48 . 6 Mid-Atlantic 42 .3 32,7 29 . 7 Southeast 49.7 46 .5 37 . 9 . Central 25 .1 25 .4 26. 2 Midwes t 33 .1 27 .1 28. 6 Note : Individual and Fid .ol .ry oobined Ior IFY's 1974 and 1973 Southwest 33 .5 30 .5 27 . 1 Western 75.1 50 .5 45. 2 010 6.9 6 .2 4. 9

i Individual and Fiduciary Returns combined for comparison with prior year. Note: Dollars may not add due to rounding .

7- 108 10 9

Table 20-Tax Auditors (Average Hours per Return) Table 21-Tax Auditors (Average Dollar Recommendations per Return) Individual and Fiduciary Returns by Class and Region FYs 1973-75 Individual and Fiduciary Returns by Class and Region FYs 1973-1975

Fiscal Years Fiscal Years 1975 1974 1973 1975 1974 1973 Class Class Total (individual & Fiduciary) *2.8 2.5 2 .6 Total (individual & Fiduciary) *$220 $199 $21 7 Form 1040-Standard 1 .6 1 .4 1 .3 Form 1040-Standard 143 120 14 3 Nonbusiness, under $10,000--Itemized 2.4 2 .1 2 . 1 Nonbusiness under $10,000-Itemized 172 156 17 2 Nonbusiness, $10,000 under $50,000 2 .8 2 .4 2 .6 Nonbusiness $10,000 under $50,000 230 203 22 5 I Nonbusiness, $50,000 and over 3 .7 3 .3 3 .6 Nonbusiness $50,000 and over 562 801 1,05 3 Business, under $10,000 7 .8 8 .3 8 . 1 Business under $10,000 472 533 50 7 Business, $10,000 under $30,000 6 .3 5 .9 6 .0 Business $10,000 under $30,000 414 476 47 0 Business, $30 .000 and over 6 .5 6 .1 6 . 5 Business $30.000 and over 691 916 1,29 3 Total Fiduciary 4 .5 Total Fiduciary 1 .39 6 Region Region United States **2.8 2.5 2. 6 United States -$220 $199 $21 7 I North-Atlantic 2 .6 2.6 2 . 3 North-Atlantic 221 226 209 Mid-Atlantic 2 .7 2.5 2. 4 Mid-Atlantic 211 181 207 Southeast 2.9 2 .2 2 .5 Southeast 231 208 243 Central 2 .8 2 .6 2 .6 Central 188 181 18 6 Midwest 3 .3 2,7 3 . 0 Midwest 212 173 196 Southwest 3 .1 2 .3 2 . 8 Southwest 206 159 228 Western 2.8 2.8 2. 9 Western 232 225 238 International Operations 2.4 2.6 2. 3 International Operations 332 355 283

'Individual by class only for FY 1975, prior *Individual by class only for FY 1975 prior years individual and fiduciary are combined . years individual and fiduciary are combined . -Includes individuals and Fiduciary by region -Includes Individual and Fiduciary by region for comparison with prior years. for comparison with prior years .

_J__11 110

ble 22 .-No Change Percent-4ndividual and Fiduciary-Retums and Time by Class Tanda Region, FY 1973-1975 Table 23-Corporation Returns-Accomplishments In Relation to Plan FY 1975 Tax Auditors Revenue Agents

Returns Time Region Planned Actual Percent FY IFY FY FY FY FY Direct Examination Time (Days) 1974 1973 1975 1974 1973 1975 United States 846,672 858,435 101 .4 Class North-Atlantic 186,314 197,193 105 .8 27 *18 20 2 0 Total *24 29 Mid-Atlantic 129,956 127,554 98 .2 Form 1040-Standard 33 43 36 32 37 3 4 Southeast 84,853 82,759 97 .5 NB under $10,000-Itemized 21 25 23 16 19 1 8 Central 97,043 97,756 100 .7 NB $10,000 under $50,000 24 29 29 17 20 2 1 Midwest 130,367 129,662 99 .5 28 2 2 NB $50,000 and over 40 39 31 28 Southwest 104,342 87,875 84 .2 Business under, $10,000 21 21 22 18 17 1 8 Western 106,424 127,745 120 .0 Business $10,000 under $30,000 17 16 16 13 13 1 3 International Operations 7,373 7,892 107 .0 Business $30,000 and over 27 25 19 20 19 1 5 Returns Examined Regio n United States 149,400 153,240 102.6 United States "24 29 27 **18 20 20 North-Atlantic 27,100 27.470 101 .4 North-Atlantic 26 25 26 20 20 21 Mid-Atlantic 22,200 24,555 110 .6 21 24 23 Mid-Atlantic 26 33 29 Southeast 18,900 18,162 96 . 1 29 23 17 20 17 . Southeast 22 Central 18,800 19,764 105 .1 22 23 30 16 16 2 1 Central Midwest 23 .400 24,038 102 .7 21 29 27 15 18 1 9 Midwes t Southwest 19,700 16,911 85 .8 41 29 21 27 2 1 Southwest 28 Western 18,700 21,672 115. 9 24 17 19 1 9 stern 22 26 International Operations 600 668 111 .3 010 28 30 34 19 21 24

1ndividual by class only for FY 1975, prior years Individual and Fiduciary are combined , -includes Individual and Fiduciary by region for* comparison with prior years . 112 11 3

Table 25-Revenue Agent Audits of Corporations (Average Dollar Recommendations Per Return ) Table 24 .-Revenue Agent Audits of Corporations (Average Hours Per Returns) Corporation Returns Corporation Returns by Class and Region FYs 1973-1975 by Class and Region FYs 1973-1975

Fiscal Years Racal Years 1975 1974 1973 1976 1974 1973 Class Class Total Total 3&2 49.1 47.0 $19,078 $28,951 $25,207 No balance sheet 25 .6 32 .3 30 .9 No balance sheet 13,061 11,545 6,984 Under $50 .000 19 .3 13 .2 16 .4 Under $50,000 1,828 1,892 2,275 $50,000 under $100,000 19 .0 15 .9 16 .0 $50,000 under $100,000 1,323 1,596 1 ;6 1 $100,000 under $250,000 19 .3 19 .0 17 .5 $100,000 under $250,000 1,821 2,141 2,206 $250,000 under $500,000 21 .6 22 .2 22 .3 $250,000 under $500,000 2,240 2,490 3,362 $500,000 under $1,000,000 24 .5 26.1 25 .3 $500,000 under $1,000,000 3,874 3,916 4,708 $1,000,000 under $5,000,000 35 .4 39 .4 37 .4 $1,000,000 under $5.000,000 7,395 9,639 9,331 $5,000.000 under $10,000,000 60.7 58 .0 58 A $5,000,000 under $10,000,000 20,068 23,859 20,581 $10,000,000 under $50,000,000 90 .4 91 .5 73 .2 $10,000,000 under $50,000,000 43,553 39,913 33,855 $50,000,000 under $100,000,000 147 .0 175.7 172 .5 $50,000,000 under $100,000,000 93,628 93,580 87,03 1 $100,000,000 and over 478 .1 620.7 564 .3 $100,000,000 and over 622,137 673,198 588,637 Region Region United States 38.2 49.1 47.0 United States $19,078 $28,951 $26,207 North-Atlantic 49.7 54 .6 48 .4 North-Atlantic 25,572 32,614 23,883 Mid-Atlantic 35 .4 39 .1 50 .0 Mid-Atlantic 22,863 16,833 29,173 Southeast 30.0 40.0 35 . 7 Southeast 14,763 24,949 17,740 Central 36 .7 52 .2 52 . 1 Central 20, 1 D4 33,046 24,855 Midwest 37.1 50.4 48 .2 Midwest 15,836 33,891 31,24 1 Southwest 33 .7 53 .0 42 .2 Southwest 14,188 28,404 11,91 4 Western 38 .6 50 .9 49 .3 Western 15,983 31,048 31,71 7 International Operations 65.9 53 .0 79 .2 International Operations 40,593 31,654 38,046 11 5 114

. Table 27-No Chan poration--Returns and Time--by Class and Region--"s 1973-1%70 6P'arcent-Cor Table 26.-Examinaflon Time, Returns and Dollars--Corporation--FY9 1973-1975 Revenue Agents Revenue Agents Returns Time Region FY 1975 IFY 1974 FY 1973 Class 1975 1974 1973 1975 1974 1973 Direct Examination Time (Days ) Total 28 26 26 16 13 13 United States 858,435 662,T78 652,178 No Balance Sheet 31 28 30 20 22 21 North-Atlantic 197,193 160,502 151,51 2 U nd er $50,000 38 29 34 32 34 3 1 Mid-Allantic 127,554 94,151 96,635 $50,000 under $100,000 34 29 32 31 30 2 7 Southeast 82,759 60,448 56,31 4 $100 .000 under $250,000 28 28 29 27 27 26 Central 97,756 79,239 84,57 1 $250,000 under $500,000 29 27 28 27 25 24 Midwest 129,662 102,168 99,145 $500,000 under $1,000,000 25 26 26 25 23 22 Southwes t 87~875 62,065 63,034 $1,000,000 under $5,000,000 24 24 24 18 19 1 9 Western 127,745 98,831 96,450 $5,000,000 under $10,000,000 19 21 21 12 16 1 5 International Operations 7,892 5,377 4,520 $10 .000,000 under $50.000,000 15 16 12 8 11 9 Returns Examine d $50,000,000 under $100,000 .000 9 10 12 3 6 5 United States 153,240 134,083 121,73 7 $100,000,000 and over 5 8 7 2 3 3 27,470 34,337 21,08 9 North-Atlantic Region Mid-Atlanti c 24,555 21,012 16,468 United States 28 26 26 16 13 13 Southeast 18,162 13,777 16,51 0 North-Atlantic 26 20 18 14 12 1 2 Central 19,764 14,774 17,47 9 Mid-Atlantic 31 25 25 17 15 1 2 Midwest 24,038 18,008 21,374 Southeast 27 29 23 18 14 1 4 Southwest 16,911 12,565 11,473 Central 32 30 30 16 13 1 5 Western 21,672 19,115 16,929 Midwest 21 24 29 14 11 1 0 International Operations 668 495 41 5 Southwest 32 32 29 19 12 1 5 Dollar Recommendations (Millions) W astern 26 27 28 14 15 1 4 United States SZ923 .4 $3,881.9 $3,06&6 International Operations 41 35 32 25 22 17 North-Atlantic 702 .5 1,119 .9 503 .7 Mid-Atlantic 561 .4 353 .7 480 .4 Southeast 268 .1 343 .7 292 .9 Central 397 .3 488 .2 434 .4 Midwest 380 .7 610 .3 667 .7 Southwest 239.9 356 .9 136 .7 Western 346 .4 593t5 536 .9 International Operations 27 .1 15 .7 15 .8

Note : Dollars may not add due to rounding . 11 7 116

Table 30-Exclse, Tax Returns Table 28-Estate Tax Returns Revenue Agents Tax Auditors Revenue Agents Tax Auditors IFY 1975 FY 1974 IFY 1973 FY 1975 IFY 1974 IFY 1973 FY 1975 FY 1974 FY 1973 FY 1975 FY 1974 FY 1973 Total Examinations 74,493 72,405 80,475 12,774 15,943 16,14 5 Total Examinations 40 ;591 40,143 34,443 8,357 7,586 5 .956 Total Direct Examination Time Total Direct Examination Time (Days) 45,336 43,771 45,189 4,421 4,158 4,45 (Days) 145,306 141,542 144,319 9,331 8,476 8,460 6 Total Dollar Recommendations Total Dollar Recommendations (Mils) $102 .1 $95 .5 $83 .3 $2.2 $Z4 . 7 (Mils) $546 .9 $498 .4 $612.6 $11 .8 $10 .3 $7 .6 $2 Average Hours Per Return 4 .6 4 .8 4 .3 1 .4 Average Hours Per Return 29 .9 30 .2 31 .7 8.0 8 .7 9 . 5 1 .6 1 .2 Average Dollar Average Dollar Reccommendations Per Recommendations Per Return $13,472 $12,415 $17,787 $1,408 $1,353 $1,279 Return $1 .370 $1,319 $1,035 $171 $151 $16 7 I 15% 15% 18% 18 % No Change Percentage 14% 14% No Change Percentage 35% 34% 34% 19% 20% 17%

Table 31 Table 29.-Glft Tax Returns .-Employment Tax Returns

Revenue Agents Tax Auditors Revenue Agents Tax Auditors FY 1975 FY 1974 FY 1973 FY 1975 FY 1974 FY 1973 IFY 1975 FY 1974 FY 1973 IFY 1975 FY 1974 FY 1973 Total Examinations 81,250 60,842 55,828 29,683 15,690 15,17 Total Examinations 9,955 8,876 6,857 3 .1-18 2,594 1,98 0 6 Total Direct Examination Time Total Direct Examination Tim e (Days) 58,094 40,669 (Days) 14,195 12,367 11,309 2,344 2,265 1,97 4 36,533 8,698 5 .716 4,469 Total Dollar Recommendations Total Dollar Recommendation s (Mils) $185 .6 $99 .9 $69 .5 $12 .0 $8 .1 $8 .7 (Mils) $64A $65 .9 $77 .7 $2.7 $2.9 $2. 3 Average Hours Per Return 4 .7 5 .0 4 .8 1 .6 1 .8 1 .7 Average Hours Per Return 10A 10.9 11 .4 5 .7 6.6 6. 5 Average Dollar Average Dolla r Recommendations Per Return $2,284 $1,642 $1,244 $403 Recommendations Per Return $6,465 $7,424 $11,337 $860 $1 .118 $1,163 $519 $573 No Change Percentage 14% 18% 18% 7% 8% 9% . No Change Percentage 30% 28% 28% 34% 31% 36% 118

Statistical Tables I

12 0 12 1

Table 1-Internal revenue collections by sources and Table 1-Internal revenue collections by sources and by by internal revenue regions, districts, States, and other areas internal revenue regions, districts, States, and other areas (in thousands of dollars ) -Continue d Indilid-I i1comi, Hild emplayinall Ix- (in thousands of dollars )

Alcohol . ... a,. . .. . *gion,. diltrichi . St.,.. . . .1 .1 .1. Total C.rp- I""',at ithh,ldoil Internal -thrun, reguo- district, .. I(S ...... DWIJOW lk,inta I. ... by single dii =1. I.. .ithh.ld id..g. Railroad Urenabloy . states, am other anbut (state. total Imcilcii, I, p,rentheati total, Total :.d exan . un,i .... hatne, am hilif,healled by ilaglix district, Eel IS Gift (to. of Im, 'IneOlh I Slatin, Iman at be, . .01-ti I :clll* Indicated In Viinenth. ... ~ total .1 We) anpl.y. due. any in.. .. . tax, tax column, Total parted .am an _far Of Stral ce but)State. sinchan at W~ 11 . 26,30, cal- A.U. ho.p .1 36 41 (a- of Total Iturtied D.-Sti . - fic Occupa. Other I- .Wd Si column . by Ilim.,. tiamid I- 12,18 Cuba, and 22) .1 41) (2) (31 (4) IJ-D (at qr (a) (7) (61 (9 ) 1,0) (11) (12) (13)ho m (14) (15) (10) (17) 223 .1122.726 45 .746.560 22S .S40 .246 37.712.721 1.616.143 I .M.OW United Spite .. total ...... 312 .657 375,421 NIrth-40lifflicUnited Spite Region~ Met. . . . .-----...... -----...... ------...... 16,647,741 5.350 .41511 3,11,115.162 Me 513 3 124 552 . 73.976 10 .679,678 41,901,3 5.09Z645 36,466,807 sa.oog 273 .543 alonti-Abimtk, Ransil on ...... _...... 819,959 7O.W 9 1,02.196 611 .673 .643 221155 13.329 SIR Aituih ------IS- to) oil,,) 255, 38 2,517 .418 200,562 2,297,269 5.492 4 095 Albany ------Sea c) below) ---- 31,610 473,435 224:092 245 .QI. . . LOSS. . 2.263 a I'S111):'12 1 03,9272 625,911 132.279 482.593 6.758 4.281 A.gu't . . 844 10,717 561 193 ------3 . 191 1-) Maine) ------. . . . 940 3 10,147 2 .919 4 lialuketchusel ...... 7,622,046 1,W2 .161 6,143,386 863 7" 5 .2W. 074 9=6 40.242 80 .1- '20996 2 .802 ------Z~ 'Z= 2,724 ---ii 52 . . . B"ookly, ...... 5,370,Mg 484,1198 4 .493 .372 933:526 3 513,'619 18,930 27:289 .,Go t lo.oo2 173,705 ISB,15 71,735 798 4 . . .. jSee(c)pmo,x) 52 562 1 95:365 " .1 7.SD4 Buffalo ----- ISee 1c) bel-) 4,8483,9,.621 275 7613 3 1 08 3,865,823 509,373 3,351,045 278 25128 'ro" Sere Icbit-b.1-I 903:::~ 18919 :3 54 :723 7089 1 313 i lulfingtIn. ._ I .. rin :.:~c~ . . . 1 :231 276,149 $7,571 2162M 462 1 no I"ln,l,nHemOrd hach----- C 1,.7 orn,.~ ...... 6.620 .,M D2 067 4276: 4 447------1') .M*,d S .1.30 11111:2~g411,417 741,891 3 .615.M2 I 22I 313 :4. 2,836 so 41 ------4 5 .9a6.49I ...... 256 127,646 ------127 .an p,loxx,h. 21 .171" .325:711 7 58.977 .342 1,416,713 25516,:20 518 26,538 13,5M Manhattan ---- =I .1aba;l*,-,ha . 97810232~71111 8315 327,143 128,205 .090 __ 2_ 67 288 ,0011171: 75: 5 3905 893 171 so 138,886 31 323 5" Pon-inh Nex, Hamps re 84 .943 . 109,51 2 PortsmouthPro 4 57 1 216 24 :713"S "2 .j% 00 ------1 401 1-ido , Rxl,,-pW- : : :-,. .'Inod, Wand ) ------:2M,897 169,997 10 27.475 191 7,030 -idence ...... Rhod . . . . . :357 13 37 Mid-Atil tq 14,705 762 18.622 12.921 81 ------...... 43I 1 13,625 6.12 ~093 33 .754 .528 4.923.558 211,011"123 . 13,299 1 611,1-Aflantic. Rego -550 ----- ...... 535 60.868 2 so an INM_ayland & D .C .) 7103' 606 .592 6,607,594 854 .256 5 .537,690 '90, 838 2- :0,130 Balti in .626.602 ess.m 06 .990 69 2,127 to 52 .423 12 2611 1 454 .213 299,977 274,926 69.422 '20" 514 '2 '3 :*1 .me . J.-Y) 11 .083:338 2 .6031,998 8,406 .206 1,375,339 6 .972.340 ' 1' Nimark 1 39,889 '1:0 00.. 4" .246 264 '12 4 PhP'Iladelph e . . . . (Sao (a) bei-) 10,351,892309 1,432906 11226 .495 11 .180609 6 1:755 067 71242J 4' 7 Pi;iladhalphub (Sao (0)ow bejo,~: : : 131 :21"1 2:1 1 .073 1 2,017 50 7 54 176,615 12590 87 604 R,c bu,gh ISm. 1.) W-) 7 155:, . 066694~, :.7~11 .71 653767 086.170 24,05621 Sit ) pal ...... 54 Sul W5 412' :o' :5 233700453"10 1265 2 .,,hl*ndon : 1.,,,,..n ) ...... 503 597 9 05 741,061 2,816 89 79.846 21,961719 A"''wirmcmd 'r' '::: : --I~Irgjln-i ) 74799 967 9 81,455 ------an 469 57 .ingt 4 .430 70G,246'49 51 :39469 23,985 ------23,762 1 465890 312:0M ~M5.387 :461 118,526 930.761 1') 61 .173 WilmingtonFl ------(Delaware) 1 .862 162 al ------South. .. I Region _ ...... 054 18,440.997 73 .411 54 3B 11:2 56 52 ------52 ------2? :897.685 3 .728,820 21 4.719 auto .. I .gi------29,438541,653 43 .976 ~"n32''43 392.1 306 .1193 112.021 49 Allai...... __ --- (Georgia ) 784 l9a 615213 3,785,990. M 61 S:.61 3:136 301 3 .885 27 :1111 Atlanta - . ------.-- Aunia-)IGS.,gi .) ------182. :7179. .437 61,476 76 $77 ISO Bi, .,nghSin ...... 2 : (135 42276 10, 236 ...... 9.960 6 21 .875,323 684:2 07 3 269 17.3 6 52 .125 .656 264 DO 1 689 :30655162,0 Birmingham - ... ' :4"as 719 7 159 59 Columbia . . . ~2,oh--- ((Stutn(" .302 1,551 :007 284,616 1,263,5011 178 1 2 Coluill ut --: ---- 1101lnNo. Clrg~1 a, .11)141_ . : 27 2 :854 2 .89 i 2 - ---- . . . . 56 38 Gnienrigm. ----- 9W3 87BA93 3 .722638 650,337 3.04 .986 399 2 :7067 Grathawn, : .768 1,798 25..8 131 ------5 111 (North Caro : 65,447 4,997 1 .324,78 6 47,609 165 ------14 :.h ------Muluiloi ;"`.: : :: : : : : 1 167.302 176263 6~ 94 .112 276.681 6571,841 425 '11, I J:." .n 109 ------56 ------zz IJ c kk -ill...... 7,875.357 908:476 445,613 1 .855 .663 4,4 2.509 66 .355 41 . A nio- .7" 2S23 22.660 255 148_------57 ------64 :c 'i" (Florida)T ...... J c. . . : ------I,FI.Inr. .ii 49 23283.076 21,712 219,480 122.162 52 Ninth" . ------I an-.-) 3 51 1,N3 509,719 4 614,256 2,179a .547 144 20 .21 smille .M 3,211 .904 46,866 5,045 19 353 22 Region ...... 43,91114.422 6,152.282 31anj-81 S21829 4 .660 .147 29,081,"? 111 .072 in In 1 90.1 " 45,752 --- ...... 45.674 ...... 78 ...... C ncinnal 3935414941 '02 Cermi`SI 019 ------.27,010 33.002 3.42'134'2687 4 . 583.347 1,442.372 157.651 1,274 .635 11,375 1 .6511 ------IS.. (it) b::=~ 1 .154,175 4,632 :995 667 :17 : Cinc nmti 11 I labe:mx~_ ---- 87.787 4421 2.: 237.S29 I&B .763We . 53 C;mmand (See (it) b toN'" NZ480 1,616.029 6,535700'066 937 78'5 751,: : . .596"3 30 47 .379 Clexeland SL 10,540 525 107,342 ,Igo 234 V) Detroit ------u m(Michigan) .1 ------14,77"74 iS96,637 12 .071 1 .215,663 10.760,332 21 .780 68,296 Detroit ------. (M,chiganI ------91,937 740,271 50,831 38. ------27- 10,684 152 431 ------:551 1,975 24,936 118,403 8,730 . .13 7; 1S 2 447 129:970 13D Indiana,—0 1 : I r..,",n,,,)Y,. ---- 6:~l 95' ;.7 7 .13: 6 908 I Indianapol i - ---- lindiamiK, ------70.378 4.TrO "381 :3'2 2 :4 .161 727 636 53 m 31 4' 14 . 1 ,"No08M177 So 08"~4 4:438 48,529W5 12'" Lou-Ille .. ------(Kentucky)Wl V ------40~972 3,196 2 . 874 __ ------264,M7 4 .323 2M ...... At Pmkm .lpu,g ...... (Welil Virginia) 1260:3M 286.9774 931,31 2 24 466 680,705 as 66 :133 1 .306 .285 693 .548 679.IM ------676,986 1 .957 130 ------513 .475 21 Set iginiat . . . . 17.5992 1 .3 1 5,308 5.238 ------Id.. . Region ___ ...... 46.64 440 7,546.9119 36 .133 .761 Go 29.32BA69 ------"99.24 50,047 2.301123-M.402 819,377 ~n1:1. 1 -.6i AtundoxinChicago ISulh Dakota ) 475,033 52.079 404,206 159 :4 1 242.634 3 2 .1mG M ChuAbardee (South Dakota) ---- 485 59 450.776 kni as 33. ------iii 9 8 .663 76 5I_ _ 651 ------ii Sea to) balml ------18,270,173 3,111. :1 14,053,035 1 ~766 339 12,007.996 1811 .035 90,665 C:F,O ------ISmallb)bolow) -- 2M,059 15.403 SUMS . 5 ------Des Mothers 2.857 .979 . 259 22 7 .515 762 .741 1,491,710 733 12,33, D. chn------lio.a ------69 .462 4 .073 189,225 182,282 45, 1 5 5 1 35A , I I& I s 42:671 865 mi ------200 ------=Ml,hl nanIti------) - 554 .748 W843 46567 .127 203 .615 3.5259 2" 2 :234 Fa,,,go ------(North Dakota) ---- 11,950 1,086 14,74 3 12, ------F*M=.kSW - ...... (`A. 422,0217 087S:1031 4:is .786095 .451 15245 1 .- 26945 Mi -..k- plNW.II .*~Iin)1 711 132 115 56 519 ------Oman ------INeonnike), ...... 4 :4037 301 30 .208 6,872122 3 .599 2 696 ------2.01 .212 34 5 .60 .946 417 .752 W :Bgs 74.369 7 .931 ornah M;np,mixi ~ I :_ :: 39 .432 3 n 96150 .724 .360 17 L-.-- IMhux-rit ...... 7.:18:. 0 17, 182 744,383 809.861 4,802:04 97,a97 34 .555 P-1 ------: 92662 1 IN5 __ ------122 ------So '082:3~ .513918 155 2 1 ~2 395 q S"SI, paul kuh-mon.) ---- 149807 1 .10iij" 4,794 .022 631 .507 31 .989738 146,451 26,326 St. W,581 7 168582 21 45,116 goal Springfield jSehejb)txIoxi,) ~3:5031 .986 4984N 2,114 ~742 714.2, :771 .:3ll112:1 4,810I 13.488 Springfieldh ------(Sea (b) below) . . . . 74,185 413:"M 164 :1"16 :3So 1 2.513 130 17 7 ulthaten flegio...... 2 42 WS 5.189,446 21 .1 a11171 that " On 45.00a 1310.651 3 04 28202202 1 226505 105,876 ------193S03 1 413 an- Region __ ------...... SOBASS 72 :43M 2 :527 271 '49. 9 W.009 35.109 Albuquerque ...... I Nanx Mexico) . . . . . 700,186 58:029 623551 137 .856 .481 .98 30 3,768 Albuquerque ---- INS,S. Mexico)---. . 11 .558 :64 1 13. : 23 .493 4 1 .246 ------ijj Au0n ...... (Sea (f) Wim) __ 6.835 W4 6418 20 6 .132.9 91* 1 .367,018 472 .340 7.188 3T36 5 Auld. . 47. .19i nl~1)1 -) 146 .741.170 ------1 26370 ------iw 1,04 . 1.523 2.128 4'.1 6 7&'31 21301401 5------0 .-eili 13 C=nn!_ :- : : : :~ : : : : : 1:4,rmng~. ..) :. ------...... 3" :612 380171 :.7 1 go'nut 159-182 7 =nh 8.402 11,777 .826,484 35 ------D 9 7212298 1 .2" :569 5 .379,973 1,381 .765 3,943A78 19,929 34.40 43 35 ------Di-R 4 14.N3 3,532,686 18,642 21.5 Dannin 122,663 6.297 448,796 45 .812 ISO ------2 . ------(Col-o') , :1 69 11,4 ~1,141 1:N o:71 476 itt 1.14`- ---- 3 ~612 0,14- 251 .061 140 ------170 l7i 2' :! - 66 012 947 334,379 676 .363 849 157,356.8 Little Rock ------lArk-il --- ... 109 .997 139 ------. 21,309 2.QO 53,003 5113 79 ------r1min*Ck . I'I~k~ran=, 3.2.7,2894 053 58S 673 625,452 942, :500 1,761 57 Nenx Orrimen . . j .1*uJ=,. :::::::: - .753 S:., .14,112 In 77,896 4D .598 31,230 12,510 1SA34 ------j 33756 ---- OklahomaWi. h 'I! ------CkIai 3361 508 515372. 0 12 .123 .770 496 :4" 411 NZ029 154 Oklahoma City . ------5`1,989 3 6S2 363,65B 245 2:498' 5 485:366 Rw 22 69234 6 56 98,403 10,816 Wichilm ------(Kantue) 49,859 3 .849 105 ~ ------69 34 ty-lim R.9icui ------41,9035" :65'432 .623 31.621 :11K5 6 .1m 7 4 27 .114= 135,201 190.616 W I . . Reegle,------78.357 438 328 ------23 02 a 2.014.524 789 .631 519 8 Anchorage _ ------.703 43 678 57:971 428 .424 2= Anch-9...... (Alaske) ---- .225 104 .433 411 .099 ' 1,667 2 .029 11 BoureHallin. .. .------...... -. . . (Idaho) ----- 11 .436 122 117 17 40 ------851,295 148,69643' 4710,228 0 :638 54" 47 4 .575. B01" ------(loan .) . . . _: : :: :: 14,'17595 1931 919 7,2n 95 IM-le.) 514 .893 47773 V7 05 864 278 . 12 596 2 :1.4 Helena ---- M 454.55 38 ------Honolulu .. . . __-- 11-1-aii) . ------1,087 .520 244~506 617.1.459 142A581 .914 10~41670118 ------:4 2 "7 :138 2221 2,190W ------i ------2,106 7 73 ...... : : : :-- = 7,) 5 236 069 2,866 2,679 It ---- (Sea 1 .) Wm) ...... :039.01 5 2.3 1 0,037 12691,096 2 . 94 5,653 mi 79:809 1H- u" -- . . . .0. : - : 211221 3'i95 . 4 69 ------: j01,re.,. 1 1 7 9 .361 149.839 582 668 3214 :741 :20 .354 V9 10.293 phoam, -- : : :- 83472 450 134 .079 358,45 97 .401 ISO 1=0("Itbillme) : 39,870 '100 7 148231 199-854 8 :535 ------I ------Wif 685 ------P. land ...... : :: m 2620,124395 .005 21 : 127 :!iSil 46, M 27911 1 .3151 13,797 Portland ------i0re ..) ------34 : Is .032 too R. n ------lw- .) ------702,93 65,18" 588,6`46 129,890 684454962: 3 Ran .724 3 .032 59 .805 . ,1 :131...... 1.. !!!...... o. . !! ------N..d .) ------15I .1.6 4,339 9 .016 22075 ------72 :: :: : : : : .- : .11 = IU-) ------971,361 142,411 799 ~ 1316,218 656.632 1,365 5418.7 SaltS LakeF, City (Utah). ------0.605 2,386 16 .126 665 ------San See S) 114 :4702S, :4.S41 1 :1 1 9910.119 1 .713,965 8, 053721 129,792 52'"0 an 'renculco 32 .324. 7W 3 1 Go's 0 2 .705~14 371 1 1 (SeaW., hIs), bati-) 246276 11 .690 938 .918 457 .026 338259 39 .106 297 .502 5 saam ------ghei 57,081 8 .235 202,M .Oal 644 offic: of lrw;r~w~i 1 .354 .U9 132 .576 11.1111122NO : 9" 894.13111 4~li Offic:noof tRitermitio int ------1111 .1175 41112 121 .W 21 :,122a ... .24.. . ..2!!. . .312. :3", Puerto Rico ------406 .106 2 .3n 289 996 .14466. 267:380 ------j .-jjj 43,15 00 Pu I ------373 8 113,352 10DA52I OO ...... 948,423 130 .10 791,2214 159,478 626 755 499 01m,------18.502 .3Z7-::::::::: :: 100,3. I1 IS ------,her : ------Undis Hooted: 394 8 .095 I I . ------Federal I . d.post ------547,794 37"13 122.644 ------62A75 22,170 17,599 Foo-al t depolsits ------4 .537 ------Gnofine ublic~linq. oil, and incen , G-1.1-ne I!,u . .ling oil, and a.- FICA Credit ...... --- 5OI .9D5 30,11,10 471,06416 47 .064 ------FICA chaddia I ------T,n""ii tt.* . adhnZin.WP 'g,G be _ ...... :1 .001 ...... ------Transterred to 61 .496 ------.498 ------61,490 ------.I hm~ G-I F` WithrieldtanaliC:dEaMIx-pIy ------Clearing liplu,.. . I for E., My hikes- Clearing account or cin la- &,a,_ and pil-ke Force an d sidatem Net and bil-An Force W j62 : : : : : : : : : : : : :: : : ------jj.-j~ N-Y ------. Pheardernmal Elexporh Fund ------31 57 Pr e=fd ------T~ for Starthey not Showen allayl Toads for St~ not Showith itterint Cak, ...i* ------130,513 132 19 28 .510,065 3~04 .039 22.se 1,215 3.9011,879 1 It:469M.374 Ia) Callonri ------534,499 30,038 1 .670 .360 65OSs a ...... 21,T74,159 3 .558,295 16.698,7n 2,4111 .117 122 .945 104 15t b) Illinois------328 Site is 472= 74.951 394 .9W 1 .155 1 .329 No. York 5138 246 ISODS6 .20 007 1,170 .035 41S.730 378 .157 45,155 .79 8337~203 211,873,955 3,060 1NZ 3 V11 I.) N.. Y 0 :633 1 .2ol,813 273,419 329,317 2 .380 1 .231 to) Ohio _ `919a17 .3811 2 1100,204 13 . 1 68 .695 11 .605: 61 I I ". "354, :699 77:400 1hk, 111as:12, 4, 143 2 :.,,7 ,.,o1 :; 2, , 183,3113 1311,1156 42 .515 5" 1 .351 W7 Penin"I.m . 17 .697.2 01 J992 . .60214 .OM,211 IM14,375 iiS.a4i 257 M1 84050 :7. ;.":026 1,338 565 Tax ., -...... : ~36`273 '720' I ( I; 16,047.962 2 .882 .T76 11 .512AS3 2.745,753 .WS218 211131 71 . 766 269 .185 44,425 1,3311,713 too 1,742 I .G73 9 117 :37"73 26.276 22.509 3.172 ------439 07 123 12 2

Table 1-internal revenue collections by sources and by Table 1-internal revenue collections by sources and by internal revenue regions, districts, States . and other areas internal revenue regions, districts, States, and other areas -Continue d -Continue d (in thousands of dollars) (in thousands of dollars) Tobacco is ... Alcohol I... .-Contl. .. I Internal ...... he liters . districts. Stelae . .it ...... I (St .. . represented by WiNgf, districts indicated in parentheses ; Well, far Internal. :*1hW :,I:qu0, . distric- tal Bear ill . .. the, states hb.n at bot- of 1.1,10 Total Clip-tre . Oth . I- Seat a . wines, contlial. . etc.. taxes (26) (27) CiI617 (20 ) heultuted b sihisgf. districts :,d cated 4, parent .. .; knporftd Occ.p. firmithad ocuulli. . United States, late _ ------2.315.090 2 .251,116 51 .226 2 .743 "Ourth,A11,1111 n*,,* or iollne, States shchen I W . Total = DNI I 1*",I Toilet 110-ad --*,he I florist ------1 .111 212 2154 us to, Of table) Ms.. I- b y hi Albany ------20 C..'arne.) ISM'n .'~ be " ------96 ------75 (24) 425) August . ------iig (18) (19) (20) (21 ) (22)l (23) Boston ------_---- (Massachusetts) ------22 lu,,,Ilyn 1 ~'2 9 2 ------a 7' ------17730.113 178 .061 154-350 4 .674 1,308603 1161111 120,396 Bu late =~'San be 'j?6 '100.222 Z V) V) -_------ifichn.AU.""d..1cSo"Reek,-lot ------.9 " 4116 23216 led B rl,ngkm ------lVemo,t) ------_ ------Allearry, . rl' be I er) ------317 ...... 29D 107 50 ------6:5 - N ------Hartford ------:C.nn. .,t. .t) ------260 V) 260 1 79-_ ------40 19 37 ------j__ Auguste ------m'. ------. 13 3,091 10. 72 Manhattan a . (c) bili_~ ----- 825 21, 17 62 IlWassach,setts) 1 .413 12 , 43 P*.",,,0a, ut.h ~Nxw Hampshire) ------: ------V) Boston :::----- 3 :60 . 24 33,397113 ------33,1" shook:-, : ::a": 1c) be 0 .) 3,657260 ------24.022 .913 P, he ------... . Rhode late.) ------a" C) below) 18,285 ...... I0245 40 ------23 Mid-All-J . Region ------'5711 .0311 20.ifi ------ifili ------Saturn re ------(Maqland & D.C.) ------_------100 eudi.. . 0,Ion .. :::: 38 :m : 445 ;0S few .----.. . 1" Cc-ruxcf~c~ii -:: 72 : : : : : : ._ :: : : :, 591 1 '3 4872 : : :' : : : : : : : : - N-k ------eisey.) .,. . .. ------32------iii 22 .an 6 .076 54B 317 3.553 3,467 ------...... ptirined- . ------(San je) beil-I .90 iiii,47% Philadelphia ------I be, 20,720502 20.720 Iftee, Hampshire) ------...... 1 9.008 ~ ------PR :cruhhihabu, h __ ------(S .(e)b .1- 3 3_ ------lo~ofcf7 ...... 5 7:S------1 2. jfIi 2 :833 ------12~8327482 ano ------(Virginia) 579,820 . 579.680 82 Mhf Rhode 7677 1"1 2 5197 1 1 ------_ ------I ------152 .AU11tic Reg on ... . _...... 21 Wil,hingh,Fin ------D.W.-I ------2.6,11 2 .575 3 0 22 .V ' Atho,,l etc------"'99 Baltimore . ------IM .ryl.hd & 512 0 ------587 04,:M .545 I .ISIA27 f3jiWili ------N-h, ---- IN cauh.) ...... 6,053 . 7,541 65,035 ---- alitunts ' .967 967 ------2 .504 ------2 M24 32 48s 48 .. umng: In Philadelphia a..(.) 5 5 is. -.2161 -----...... ------...... 15 341 620 1,620 P ti ...... (San is) thilone) . . . . 59---- - th =~, 11)) ------:: ------2,763 2.659 104 _ifi ...... 24 :118462 R!ch. .nd ------(Virginia) - 642 ~ ------JGreensboro.c,,.n :SN`."~lh 1,111ii .47 ------i .fi4.1116i ------i.il~i ------di VAInhngton (Data . ., . ) 2 ------2 lmu.e .ippi ) ------Southeast lia ------3A72 1,239 1 .054 774 1110,995 iiii Awle Jacksomill , ---- (Florida) ------lixid ------ii ------fii 31 .424 ------Ii.fis Atlanta ------(Georgia).Il ------566 ------...... 431 12 31,4735 ------jj .. . . N,shill ------(Tennessee) ------508 ------503 lininC .m.,hp,. . ... ::: :: : : : ISA.l, h C~' 76 2'. C--1 Regio n ------50",38 4,04 53 ------Wall '20 1 142 ------I— ------47,305__ : :_ :: : : :: ::------47 ' 230 C 23 23:= ------au, Go,unsbom...... _ (North C=O~inno8)) am139 ---- q Ise ),,e,,Iand ------I" I'!So. b' d 651 W J ckson ------(Miaaiaaippi~ --- '3 102 j:ck .Hi s 1,7202 175 356 67,636 6110 68:653 1Ln, 6 "1 Pamipo- - - 'Wi is 242'4 91 N .h,?In,,I 144 .420 ------1.336 chu-, I ------.... (KshIu.ky) ------_----- 499 Sea 496.451 3 .2 4 5 .6525 ------.11 35,324 i2i an 403 Central Region ...... ------ParishI ------(West V,rghua) ------24 ------24a ...... Callinthill I 689 126 47 . S2 ------47930 Mid,iusef Rep 69 ------_ Cis und21 1 227 IN 9,9472 41 9~431 111"nChieng...... ------24 1 50 13' 493.4 4 Detroit ---- jlllhipul~ ...... 2,128 654 22 3 (a .- in bal-) ------. . . . ------_w : ------i ------fif 1" . .-----.. .. 203 so ~3:262 ------235 1 Do. Win es ------1 .) ) ------_------lndmn~p.lu;...... i. (Kohl .n 21 : :: : :_ ::::::::------14 .379 Louis, 6 5 4,434 Fargo ------11*11 Iko 1 . 3 i R 4TO" ------(Want Virginia) 0 3 ------1 3 Mil-kno ._ ------Wisconsin) M. . ------* ------i M=go I'Asm.012 ------5.mi 350 .M67 460 349iii "br-ka~Mi'sou ~hfda. ------233 23 ------St . Louis ------6) ------V) ------37 2 .33 C ------4,6113 I.-M a. ..------...... 441 " M'hh ") ------V) ------liewa(b)) "1" 33 ------_ ...... 27 7 51, S., ".U ------an (b) below) ------Fargo ------I ---- North Diii;tij ------2 So'."theNT'In' Region ------S ------i ------iii ------4 'i 31 187,045 125 lea.isw Mil- k as ------lWift-in) 291a25 1 - 8 Albuquerque Omahua ------(Nebraska) 8 ------_------5594 534 ------*b,., ------i-ii ------i ------iif------i S, L-1 ------(mi. is. 1,253 4 95:267 ------3 95:150 C us.., n.nn;--- at: P. ul I" " ;,'025 172 1 .442 11T 2 :1.1is ~...... 4 onwi------r ; ------4 30 . 30,5912 9'We D:n., Spnngfini ; Sea III) teelm) ------I ------isiff 1 MILINig ...... ------(Colorado) ------: ------sonuthelettl R .91 cl------2,GN 472 1,2121 .... 481...... 2. .I.W Little Rock ------_ (Arkahade) ------...... i ------Csi------6 A IbW-rq.. Mexico) . . ------1 ...... _ ON Intan 1- i Austin ...... : ::::::: Sao (1) balm) ------3 ------1,654 ...... 66...... 2 958 4,4,2260 ek,,hor, j0'ku,.i',j.'-_), ------I Wtchita ----t ------Chains- (Wy ..ng) ------log4512B ------4i _1113 y Dallas -- : : ------194 q WasArt!.hin Region ------4i ------i ------ii------iii : : : : : : : : : : : : 847 ------109,797 o) to : : 7 27 ------jj ------j.-jif nc orag------. ) V) ------JAMansics) .78 464 13 9., : : : : : -j1dho) ) ------"' . . .I...... FIVIN10ek- 20 . ----_------Na~MIS Oduhh, ------(Loul sima) ------247...... 2.1 13 He n.--::------Monism-- _------4 1 3 ------_------H-1.1 ------1 (_i I: ------is 91 Los Mrl------(San (a) belon) ------104 w'Ch""' I Us ------:::::: "hism I 48 : ------i.rfi ------fli._2111111 iii 78 Region 110.7 0 WiXii 083 1391419 5 Ph------: ---- :- : : : : :OA 9 ------Anc n"' ------IN K a)------:: ------4 V) 3 Porlianct ------req.n~ B.i ------Idaho), ------32 ------32 2s ------I Anne _ . ------as 5 2 5 Sall Lak, City ------:w : :: ::: : ,(,Uta,h,) ------...... ------58.962 158 863 1 Ho=l,;-:::::::: H-11) ------677 63 1 m San Franc------(a.. (a) b1111) ------Lee An 1. isbc ( ) bill".) 6,1156 1,00 5 .~S 2335 1 ."G 57 . "I ------...... mashlng-) 9 52 2,2656.922 1 62..2503 a ------9 ft-n .!* Ancona) ------: ----- '52 .459 '113 Nice of International Offahatichus . _ ------11 .447 ------Portlandhe ... --- 195 9 ------if 25 486 15 Puerto RICO 11,447 51 1 1~3...... : 7 ------I . R . j'=c1 2 6 Other ------ad, j1h------26 ------U.di.t,lWt .d : 1m ------ii.iii1 2 1 2 17 432 ------at I ------_ ------__ ------Sn Sea (a) before) 100 53189515, ------65 63M 1114 VI Feder I Tax deposits S. .1 . ----- (Washington) 2 "73 111 2 .27814 ...... "4.7. Gawl lubricaung oil, and twGm FICA------credits , ------"1.: .1 -.1 Operand. ------a,1. --- TnansW ;n',hed, to Go-nrnent uss o us, ------14 ------11 ------I I ------i p. ... ic. ------0 ------Clithhold tun of Freehil -PI .Ven ------Oth r ------;~%ac o,ntlo , -Ise tuda-a~ah- 1,01 and il-Air Force indublaut d ; phu'. ~' ------I ------Federal in deposit ------__ ------infial Eiecom Fund ------Gasoline lubricating oil . and neon FICA cmdlft ------_ . . . : : : : : : : --- : : : : : : Totah, for States not sh,en, fith-s Transferred to G-hru,ent of Gun, Withheld ft.. of Federal ernbloyess ------(a) California ------127 2 26 99 chiarighweduful ll~dI ., End. . Ms .- (b) Illinois _ ------60 ------3 67 oll-Ae I- and! ic) Ne~ York ------_iii 956 w 020 any 'U ------to Ohio ------674 ------654 it Prm------Ttn,nssy~v'anis ------20 .723 20 .723 0 ------.... 242 mI Tese . to, enable not heyern .1sce. so? 76JOIB 1,072 74,781 165 (a) C.1ifierrici------107729 2000 105214 350 4:627 1516 32W 11 632,9460 326 32,570 (b) Illinois ...... ----- 3,467 57,097 72 ic) Now Youk ------I .. . 29101 0 CF73 22 994 113 38 '986 1 :916 324 a763 :4g2'3' 21 67 3115 If 3~2k .711 ------j_jj 63a$ .486 233 I, oh" 2.623 ------2,6362 36- T. so...... 1 .849 fin 1,152 .859 12 5 124

Table 1-internal revenue collections by sources and by Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas internal revenue regions, districts, States, and other areas -Continue d -Continue d (in thousands of dollars) (in thousands of dollars) me-Itclula". .-Se I. . .. R .I .H., St sale. I.- Retail ...... I. . .. W .-H-O. . . . . W . t.. .. Internal .. . . - nmn. . districts . Continued Tire, 'S.1:!**as..*"d Wna n.ln~~- ' . 'Sli Int, nal re-n- ,g.,n, . districts . lehollyor in Motor C.n led by diis Di ... I Telephone Trans. Us'. .1 T,an .p,,. St.,'.'. . end N- :no and nnal,."Onal te_ra, Singe r In., ...... ISI .I. . "nCh . cis. . 1 . Co .. -W indicated in ps,onthea- total, 11, other States . .1 Other role .,.,Yp.. P-t- n 14ples led Or single districts badl , an ... .1 1 . P1,olso r Sells, pa, ,*n* , ,,, ~,,, .:, Onto- Y Ildic,l:d in p .. .nth@$,, : total, Tonal Catalina atI .I .ng 0 0:, an Other I Total via, ' 'on to- .1 table) b, by i: the.bl. .1 shown .1 hot . nn ., .1 lc,s . tc . tub,, . ii d lu ., In ., (311) ('01 (At 1 (42) (43) (44) (45) (46) in an d gasoline tha n insets .,, .United State . . total ...... ------370,489 3 .306077 02,3:~1,1 : IS so17:,111 ~g 101:1 1 ubb r Atlantic Region ------17.410------577 .498 2~: 220 M"I 40 22" :': 795 (30) (31) (32) (33) (34~ (35) (36) (37) (38) Albany . . ------(See (c) bal ..) ---- S :21 :~~_ S~117 3 .163 " ...... August . _ ------(M.n .) ------: : : : 297 '38 468 87 125 '1 United State&. total ...... 5,51 .611 3 .950 412 91 .0531 "9,:3 . . Mi2 a 11420 :41 .1.1 11 .1,17 .573 Boston ----- _ ._ (Massach.sons) - : : : ---- 3083 89.452 82.019 480 elanh-Atlenbcba Y Ratio ...... W3112 112 .127 72 . 114 1 I'l7 41 7 221 2 7klyn ------(Sea jc) b .io .) ------1,2489. . . -2 141I :11I 63 132,499 6AI 7. 385m 8272 AS n (See Ic) ba 3621 3 .129 1 14 '39. I 61 4.36 3 38 9.~21 I so 7 30 13 'Ing-1 . (Main .) 3924 3 .2Di C) 1 54 82 3 1 .397 421 69 '"B So a SO V:'. 1.)n') 2 63 13 7 1 ------46 2 , i2 ROSS,, ...... IMassachusi 41 :171 36 . 60 264 a 121 3,512 249 so Me "'ord ...... lConnect-6 632 ------N .110 29,283 2 fil 1 17 M 28287 . . .6 ___ Brooklyn I below ) 2, 74 4 6,697 73 .798 2,105939 ' "1721 1,42. 16A P.,n"lne ...... (San (c) belo .1 --- 107,779 8131054 1 071 2,158 34.887 401 :447 l9j1 7 38 IVU 2,50B 2~0329, 5,263U6 7 0 - lulh ~klew Halpsh,M) 1 ~085 244 9 _ 4 71 B let . ~sSee , (c)" belol) 1 6 1116 11 Pov,d-e Ah.d .lsland ) 25 . ... . 3 ~V ni 1 3163 161 .151.1 51 54 C .-C'mu') ~3 114 .502 2 :11 390 2 32 151 Mill-All-tic Region ------_------. . . 44slol12 395.00 51 4.330 1 .050 -312 9 .123 m As"Sir rd '735827 21 :233 315 6,23 5 0 1 4 :462 251 8 48' Bellmore ----- (Maryland D C .) 77 :~1,17 143.502 27,!K111 465 821 4 2 :0369 1 .444 134 510732 28 716 24 245 11~711 a -23654 1 .3757 -1 .326 4 933 FPro."," urn...... 'H2-bep,'n%) 13 C . _ Rlod . Island) ---- 4,213. No3 :41 4 Fhilird.l~n , 184,733 2 54 64 4 :1 36 7,t.1 17 .161 .5) 75,113176 711 .971 5 .015'3' 48 .10243 83845 4 .5931 P1 tabugh ------(See (a) be:o,) ------2115,017 901 .419 52 14S 1 Mid-Ati :rb, Region ...... So 13 Me,, ",.,rd.1 1),C,) ...... 71015As73 ~59 5 27 .568 279 44g:113 1 :11 2 3425 R, 454 .3994 40.016 128 2 32 24 3 .1'00 7 .215 256 1 .777 Wd-nW"onn : 2 ' 752, ...... 4894 42 2,415 936 66,584 205 Philadelphi7. ------Joaohe je~ below) 2 9,481 159,933 34 .573.185 20.10 6 63 660 1,209 171 S .-Ses, A .gic, ------40.905...... 29 .75 4 128.74109 5111 6 .290 1 74 1,204 2 %.11uhrn .,,,.1 ------: 1,,,e .ealllow, 292,6274 271,86514 9.52 2 3,690 4 1 66 119~486 0 520 Atlanta ...... _ . (Georgia) 14 :.121 4 :S1112 1032576 98.441 2"1,165 3.26a 1~1597 R 16.49 2 1147 1 71 :2 13 50 5 827 137 383 6'-nqh11 ...... (Naba m 14'68 5 .70190 ._ ...... 4,125 1 1 866 Wll,,ngton ...... (Delaware) 92 54 11 , 7 23 1 .629 Cc Wa ...... (S. .Ih "oh") 3,1 2 `1 2,475 1 DO jI2 26,.og 115,967 455 11. 4 24 . 21 4 .309 46 .396 3,231 Greenlb o (North Carolina) 7 596 4 0' :3'53' 22,985 0,577 21 324 South ..I Region ------_----- 155 ~24 658 Allenle . ------(Georgia) ...... 662 19:5 2 Ila 1 .095 5 .7 4 142 Jacksono ...... (M,--pPi) 2923 2 .788 g 1 4 to i2 "314 1 1 '..lot 5872 A 27 4 503 ;43 Jack... W1, 7 12 :331 27,2S4" 2085929 59B I ~o71 6121 Mr-gh------2V76 11S il*,Ih C, 4,11:10,24 4 3 1 1 2 24 9 443 390 3, ,64259 NashWl, T-nes-) - - - - gas A 1 6.2760 714 0 35812 . 247 2B98 114 'AN 21 400 CaCIr.I R.,rOn ...... 16:.2 IS ...... 2slS .029 20 .974 2,04406 12 99 2 6,7216 W-Sh, N .nn 2 (-~ AM2 119 T,1~59 6632 to6. 0 7 W3 5 598 6 8:3 5 6' nc,n . I ...... (See (d) low) 4:011 : 32 703 2 7179 717 -2 17 4609 15, 378 656 3 068 S3 55 927 C;. stand ' ...... (See to) be],,) 14 966 605 DS 2 3 1 log a id*.')'pP...... 19 .5 340 .n 2 440 I S C Naiih~,lle ------T.nne .si . .. . .20li~:2 'm 251 2,909 151 10, 1 Detroit ...... IM,ch,gan) ..06, 84 .473 68.20 765W 511 1,793 3906 4141 .246748 267475 2.666 50.2773 2 41 Indianapo is :Inl,,",) ...... 177, 46862 37 262 2 . . . . .6. . . 86 41 .n"., Rag ------Is 314I s:39'72 -.1 '3 4 :, : ~d,; , :m .. . . . 60162. 83 12~32 57 2,893 57 4,954 134 L-awgs1 K-l-ky) ...... 77as: . . .'1~1 1 3 5:4119 4, 54 Cincinnati, 233 610 T a Cl eland' a. 141 .402 1S12 417 :99111 4 Set P.,kensi (Weal Virginia) . . . . 1 :7 20 1 6,3 Detroit P 2.:'W71' 69,590 5356 -5~507 2V Z 1 .71 *83' 19.142 466 5905 511 .1 . ."; i 417718"' 263 .6144 ...... 11.817 111.2")1 7~' it'i"'giln -.------1 938 205 56 India. w.; d,a.) ...... 39.576 29555 15 232 9 1124 500 AIs1b,""rcee,as"' (So,th. Dakota)------:830 76 M,867 89~06 2 2 .630 278 2863 7 2551 N Chicago ------(Sea to) tosio I 23~1572I 7'1 12 127 , 71 139,2101 6,iis 6,4(7.1 1,44 7 Lo-Ole (-l-ky) 145 60 121 837 6 .445 . . 49 ...... P.,k.,.114'-O _,West ------3.K1 5 2,459 34 2Gil 033 2 05 Des Mones ----- (Iowa ) w . 1'.9977 115...... 91...... 7 5061 as 9.926 11 .216 143.02 12.259 66.270 4 .656 F.,g...... 11,1-h Dakotaj_ 959 . 94 .239 9W - 1 . 2.322 Mid ..1 ----- 684.219 1 6554 7 . Atne------(S,,th D,kotai.. . 54 Mlils,kmIS ----- _ (Wisconsin) 6 '41- :_ a a39 :121. s32:197 509 1 6 2 1a73:3112 ' 7.254' 4 .759' 1096576 3,4) 251 :2Bi g0 529 1 .0 111"aL. .,, ~N.b,Saklt) :3 ---37 ...... 2 7 Ch,.V),o ...... IS.. (b) bal ::::: 1242:al . 1 W m11 D. or' . ____ (low .) _ ------24467 14,801 12 11 1,35125 1,4114 1 6695 6,984 S maso-) - 342 6 93288 ..l IN,"1 1 3,014 10,1184 .352 7 9 a I .(k44 1 59 26 S;~ P . .I t .:n-I.) - - - '5162'0 , 56702 3,4815 39 '467 2,W4 1 .691 1 e Farg...... (North 11 .._::::::~ 677.171D 3.23 6.627 39 3 4 Mi1w, k- ~ ------jW,s,onsrnnL,) 16,165 159 373 14'As 1 .05 lieSpringfield (See (b) below) 12.310 244 2 29 317 26 a 1214 3 A44 119 Bo .th."t Region - .- - _ _ . . . 11 1'241 :"'63' 126 .001945 54 .5126~ ...... g,1A13 91 1 2 9' .. 011ha ------(Wb,sk,) --- 7'60 6.464 9,461 207 .8'24 3353. S,: P,L M ricibin" ., 66~6 5 56,874 91 8 1 .704 6,880 57 A b,q,e,q,, (k1sw Me .,co) 1 .242 I s 01 9 2 1,6 40,739 1 .075 103 24 :177Sao 5,11 2 6.2106 172 14 A,tstin ...... fSee 11) hot" 39,454 W .135 2,511 OB 0 394 476 5~522 St S 4 :975 2W 151 a Snr,ngl, .Id ------IS . (b) .1 ...... 32,113 27,64 1 2 -138 417 Chayen ...... 'Wyom,,g),w)if , _ _ 2 GG4 So 07 135 . . 1,816,7 71 45.868 7 .225 23 .97144 3 .0361 037 :970 2.2271 7.111111 D 1 . _ ------(Sea I I on, 20,076 0 2 8 28 2 27,412 ; 1 .37"2' 96 7 '13 -11S .Sell Rag!...... 1.897.273 13 A b.q,e,q ...... _ j1haw Me, , ------* ------""7:13 "0554 1 D=I ------(C.1-do) 3 :1 7' '18 09,82 10,724 6 310 losm :9"095 30.8'~' ) 3,796 71 43,39 59 502 3 .44 Little Rock jArka .ass) 4 :a72- 49980.02 2233 4 AIS. .nn ~ ...... (See IS) beicc)..) ----- 6 W55 1,077 6 1 57 CaCIp W 2~ 39F 23.317 4 "Do,12 2 4 2.721 New Orleans L-vana) 4,704 ------So 5 201 -3098 3 - .66 11 2.64r~ n..), ,, j 2 SOJ23 235 308 5860 73 63 45.4 21 .296 3 Oklahorna City (Oklahoma) 14030 17 .4 5 1 .559 4 ...... _ ...... lColorado ) 39 .298 32~6116 654 1,84 ,535 1 575 4.019 38 o . 1..S, hIaR;SS, ; ;___ : : : (Kans a) 5 .901 i : -- : : : :_ .206 I ;:.151, a' 117 0151 783 607 21,16, g . . 64.5 2 ------Little Rock ...... (Arkansas) 37,681 3 3 765 364 61 5.223 461 .914 3 . 73 .20 8 .4697 1 1611~:6 14.11 20 .226 18,019 528 ~4 5,54" 260 620 AnchorageB_ JAIsake) . . . . 2 0 . 9,285 3.108 2,7780 1 2 N . 0,1-...... (L-wen.) i47 3228 23 1 Dkish. .. City . . . . (Olki .h.- ) ...... N4.8141 333,073 7,118 7237S 31 75i a 51 15.627 1,270 j 1dal,0 2 .NO 2 26 "921 : :: 1 1 Wcn a 7,11 1 55,211 9 485 6,505 13 He, ..; M nota) n,) 1 .6 SKI 443a1 a a -2 .1311 6:9 2 2.1132 77 23 8 Western Rej-. .; ; I ...... 157SS 11.6 -1111 . 1 ' ..1?) lli :'13~1 7.711 . .61 1 2 .270 H.-I .I. : . : : : , : 14 a 5 3 1 Do & , 38 7 1 3a Los A,g, is i Seew(,a, i) below) 17,213 12.: ------126490 48 350 11.1; I ...... 3.. . . .896 3 .873 136 A cho,z cwis"~ ___ ----- _ 4 96 99 Ph- ...... 57a Boi ...... lid .ho) __-- 2,380 74 1') 1 4 03 86 (A.ona ) 2 .5M 2 15 . . 12 "'94 l .gN 41, 95 24 1 B9662 93 a . ~,cti a 109 DO 60 . . . . . 3D3 ,- St ...... J .-Lihns) ------C) 25 Honol,l, (Ha,aii) 2 41 2924 2 '0""Ran ' ' .669 5258 16 a 180 ...... 291,"3280 250.96 5 3.97 -82 12 471 3 13.232 95 14 62 -3,870 Selln Lak. City --- i .I .n) . . . 2.88 2 16 2 5,68a L Stbern ,A Was beiS Is) b,i&WI,, ------7 16 2075 a Ph' Arizona) ...... _ 728 C) 1126 128 6.0 226 S Francisco See (a) tainw ) 21S006I" 182,6262 7, 5' 3 .'622 2,4495 6.33714 38,636 10.285 17 62 27021 7025 5.D42W 17 328 0 .,Washington) - - - 3.423 7 63.506 23607, Portland : : : :: 53 49 Reno ------1,886 1 .837 . . . . 1 .771 thc .1 p-on . 1 1.11 ...... 2 2 .$12 . . . . . ('1 91Ai .1 4 1,86 5 __11 231 ~' 337 2,7332 3.050 N 83 Pueno Fico ...... ~ : : : . 1, 7 513 S :lt Lake City ------(Utah) 414 636 SanSea, Francisco (Sea I W- -1 W) ------: :. :'. . 2753ss,31 15 11a:~16132 7 .121 2,04 1 4,264 779 25.313 606 011,...... 62 . . . 03 is 3,7~7) 2 .566' 46 229 296Sio 63 ...... 188 154 onh.. 19 . . . . __ 4 0 186 3.765 U,d,stft-d~ 5312 . . . -, 2 23 3 ...... 3 1 ------P.. 6 2 Otheno Rico 527 ...... I"i 20 Soo FICA ..oil . a"'_ "' and UndilithOU1Wr ------Transferred to Go,e,n,e,t of G- m FederalGaso ta~ deposits I ...... _ . ._ ------Withheld lues ol Federal e,ploy-s ...... ------...... "ne lubrc?t,,g oil . and ,cms Cl :,i acw,,t to, E,c,,, t, .e,- FICA cled 1, -1 ...... - ...... : : : ------vianon tual ndl olt-A, Force and laW.- 1,G-,,m.h,ofGu.m ...... Withheld a . . of Federal -O10M. .. . ------...... ------_---- _ ------Clearing ..count to, E .... I.- Stinalmon I al and W-4i Force and Touldis fin, Starres not shmn 11,- Nrl~y ------esroqsnbIEl..onFSa,Sd- _ ------(a) Cldil.- . 42.033 . 341 :1~96 23 .972 64 576 7 :4 6.3 3 8,474 ib) Ill, on, ------140186 139.545 6 13o 6 Ago 2,474 Totalls hor Shatere nor Mhoner, W,. 4493 IS.588 1' 120:714 219.686 22 .300 9S 7 34.91 0 jd~c 0=0- Y 18,596 107 1 .229 -3 . 3a .1~109 11'14.,6 955 2 348 '4 Is) California 565128 517,838 117506 14,5144 6 1 117 4Q3.774 .029 7 Pan .. 2 252:~~ .7 48 3 Do 7 78 m:T1" i1b1111no 1 5, 6233247 6 .256 22 384 7 4.132 30.19A 67 10 T..a, Y 5B9S30_ 96~227 20.79 2 42,492 1 .767 1 .463 5,801 43.3667 6.970' 1 1 :371 hew 'York 107738 50 :076 428 41419 .8 9 8 9249 i'dj Ohio ------6 18656 153 .728 1,55, 2566 . N so 1:887 2'367 P.-Y .-n. , 011 431 :27" 11~095 253 :,716 7i :4144 1,215 30.DO 7 346 SAO IS) 1. .., 367 03 3,32: 17 36 7 14 19 1 33 525 K696 840 4 .326 12 6 12 7

Table 11-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas I 1V -Continue d Table 2-Internal revenue collections by sources and by quarters (in thousands of dollars ) (in thousands of dollars ) Miscellaneous -i as . .... Continued 1. m .' I.. . . Us region . . dahri.. . . N .. .. no. Wagering I. . .. Sao .. of ...... States and other hhas I IStates P" . .t . Sept. 30, 1074 Dec . 31. 1974 Me,. 31, 1075 top,. . .. led Ill a.9i . panic . and C .- Us. to . on J .- 30. 1975 hi. ... Us. to . Grand hotel ------indicated I, par hill. .. .: totals I n.t.dl.ny operated inghway cMI Ollie, I- 67 .5110 .672 62 .107.280 73.452.N3 90 .581 .603 11, the, States She,, I Wt . . .cup Wage, . Iwo, Wm of the table) , I N 2kcas M" d= in It to . Corponnion firconal has ------__ ...... 0,961 .337 9 .2B5 .U3 _WPINT--17 .25f",069

(48) last (Wt e') (S21 (53) (54) (55 ) Individual firacclanne am employment taxes, total ------62,94111 C .330.02 5B.lN.441 Ge'Wro-'ade Untied . list* . . total __ ------. . ... 152 6.826 227 S.Mo 207 .663 20S59 63,028 22.800 -45112. : 1- . - .1 wftld and self-employment ill ------6,011,613 1 .3iO 690 9.779,465 20.580V3 Righ,- --_------4 23 7 440 20 .101 5,016 23 .361 8,040 ~' .2 Income within, and.nt okkage, storm,ors, 46,191,105chutillity . and hospetal mouranc, I ------45 .374.260 47 .679 .410 46,578.526 Mbary _ ----- ls'7 bal. j :.112 40 79 12 Railroad mti= .) ------1 1 42,11 1 ------402,082 425." 400,018 379AOS Augusta in ------20 6 08 13 69 Unemplommint insurance ------__ ------338.254 iag,805 31211,729 531 .294 Both on ------(M.... chuti ...... 2 17 1 31 3 .646 70 1,712 3 M ...... _ - I S Orooklyn ...... (Sae (c) hot-) 41 121 2 . 74 111 'IS 3 4-2;'29333 Estate tas ..5 -"11" 1 Y6T____TTM4f alffalk, ------(So, (c) belo') &1 3 ~308 85 211 491 Gilt to, - ~ ------_------_------_-- '. 372 7S.7 "1 91" 84.335 "Iftnglon ...... lVemonit ------I ------443 11 7, 602 65 Excise least. total . . . ------...... 4 .435.473 4.409,548 3,1147,920 4.154.692 'prdohd ~Con itch-t) ------t1 V) V) 221 36 1 .213 -10 .580 antuithin Ses 7(c) tualow) _ ...... 45678lAJ 4.580 5604:1 6~194 385.84B Alcohol taxes . total I...... ------_---- 1 .2e,11.469 1.471,650 1 .2 0 .011 1 .3U,729 PortsmouthProt I . . . ----- (New Hampshire) ---- - C) 6 C) "d 17 192 Dallied "Ill (Rhod . .law) ...... M ..S 27o 116a '77431 ------86259o 1 .11a 1 358 1100 :S7 W 241 . C) W193. COndiatli, *hC------34 1 Mid-Al'' *..ti ". Roj ------41 'isl407 Ii 3811 2508 age 2.3111 -78,051 Bear ------357,247:632 : 237 47:825 Bell-Is ...... 175 3 .259 362 829 526 -678 311,02.21 211S 4 .2, 4 35o 660 ""-Y) 2 314 43 2.612 690 - 97:160 7.b.-tonnal .kins". _ ------__ ------Vi.-pit------M.1dr- 544 PhiIade, ;i;.o-- : : :_ : : lSon 'a) below) ------1 60 Ni", ~3327 3.516 !144 -3 008 .30 592.041 ' Pittsburgh ...... (See (a) below) ...... C) 56 4 5 4 .437 127 468 240 _ 1 354 S Rc1nmon n' 2 53M 3 .912 91 6415 3 312i : ------562,016 589,391 631,627 smoei W-ing d 1O.T..Ve) ----- : : : : : : : : 2 41 7M a 12 .067 M116 11,884 13,1 9 .1 : l :; I*) I , It 24(1 59 236 = outh-st Region ...... 11 1 .141 6 638 ~1 "1.52 . 3. 3 3,59. 1 .616 -4.650 7- ---- 595 560 792 Sol Atlanta jGeogia) (') 56 1') 201 4 1 .53 1,001 752 -1,290 Birmingham ------(Also ... I 1 115 4131128 211 125 12 -7W Manufacturer a excise taxes. total ------20 53 U.23170 3 Columbia ------(South Carolina) ...... ---- 732 1, N 5 1~1211 Gkssolm------Greanstooro (North Carolina) ...... C) 11 1 6 6 6 3 243 34 3431 3 112 W,DG5 1 .055 .735 1 .012, 928.067 1 :,I: .,n V) 14. 4 17 1 98 70 32 8 ,&a Lutinixithriyoll,etc . _ . ------...... 23.291 25,374 22 .36'0' 2002 3 ` ='or) 11 896 4 344 8:115 7 1 Ma 301 -2,497 Tnes (,no ly or,, ban of rubber). mme, lubes, and thoold rubber ----- 2M.662 190,760 165,428 34:811 C Nash~,Il ------(Term ....a) ------3 5 14 3, IM 1783 4&1 72 -1 .798 Moto, minicles, Chess,$, bodies Parts . and accossones, 1.10270 IS 171IN:'111 169,2" " .mol Region _ ------a 452 22 5~3 .24 079 7.525 702 -11 .588 Other I- . . ~ ------22 16,402 M76M8 Cincinnati jSe . (d) below) . . . 3 178 1 67 4:.131 .261 Retail...... Its, I.n., ...... Clinaland Sea to) below) 1 `9 4 711 S 78 9~3'7 ' .9" 411 102.553 110,062 05.94 7 I Detroit ll,,h .g.n) ---- 2 1 1 2144 1,420 3333 1 5 96r7 -4:j79 Indiana, Indiana) ----- 2 42 11 7 6.7 143 .440 1 62 NI'1*11.h_ rclxl~:_ , ?U,.-hnh,I I 31,889.042 3002 2951 2 .132 Lo-ille . . . . (Kenh,cky) ------17 23 30 2.4W71 46 1 3104 02 2.34506 N .mc on or 6:574 Parkersburg ------iiiii.al Virginia) ------1 6 96 1,216 27 at" 4 142 Dodufl',und "call motor fuels 95646 .2 .55, 100530 1, Wiliest R.91o ------...... 26 321 l?) 246 34.774 5.72755 7.710 2.490 -13. Us ()inor ------2 ...... _ - C Aberdeen ------jSouh Dllktna~ 122 118 88 1 3 Miscellaneous i ...... I,, ------;hll:? ------Sear (b) below) ------16 11 4 45'.3 1273.211 3,343 1 .867 -47 .5914 . . Mws' 417il"__F 774-1 7.11 .511 f Do. i...... _ flow.) . . . . . ------_ ------1 32 3 254 13 457 Fargo l1tirth D.1o.) ...... ( .1 21 3 5 30 191 31 . IS W Telephone and toletype- -hnin__ . se- I cas ~ ------...... __ . . . . 657 .438 437 .606 481 .554 447,146 Mil-uk... ..Wisconsin)...... I ...... I') I 1 4,1671 21 044 93 -6,239 Transportation ot persons by I, zoi,ool 182.631 173,721 0 In. he Nebraska) ...... 38 4 11 2. W 74 256 so -1444 Use It internatc,all air tra,st tax,illb - " ------. . . .------. . . 19321IS3284 Z Transportation If plopertr by air 7 ------S ~ IMi,. .uh) ------. .. . V) So I 1 5,58 995 1 . 0 5 3 18 :965. Sugar : : i 2285: 4240? ;3 031, 9. S; Paul M"'"op) ...... 7 1 1-) 6 5 .075 1' 5~ 1 37 1 4W ------30,753 32 .101 23,553 17,362 S0.1thateSpringfield ------1 (Ses, jb) "to.) ...... 1') 75 1 23 2,117. 50 1 1, :11 2 Narcotics and meflinuninsdli~hcjudirq occupational 1exed; 17 36 26 1 4 .------4 .653 754 361 027 ,I Rag on ...... 1~) 151 28 3011 1 .171 . .:11 : 4 .1 .114 -3241 106 C thm"D "ll, Alb,d . jNsw Meb.-)) . . ::.:. :.:. :. :. :. 0 1 C) 6.766 45 Ault.... So. 1) 1 - 2 ~0)3~ 616 5458 .1M Still6- - Me803 Occupation I ------_ ------56 49 49 73 Do Sed 44 So 1,546 1,648 1,504 842 ------It( ; 7,934666 566 5 79731 272 7 U:*t.'. on ------_------_- __ ------109,202 25,929 3B,577 33955 Den a------(Colorado) ------4 V I ('1 2 .861 21 7 1ig~ 125 -20238 use tax on cilil aircraft ----- 9 . 44 2 .885 4 .661 4 :170 Litt), Rock ------(Arkansas) ------6 45 22,51D 1 3 4 . Pn, .t, toundalums . total --- 3 :328 5,690 11 .636 44,416 0No* is11111n, Or 1L. Won.) ------1 6 6 s6 111 . 2485 152 I= Oth...... ------5 1 98 4 .594 5,079 6 .687 k horma Oklahoma) ------63 'a 61 3.658585218 1,~4' 97a:1 ::::_ .(Kansas) .. .. . ~1 :415. 135 41 T -4 Unclassified actas ...... ------...... -.11 .1112 thil.,...... 1. Oq12 31.0. 1 2A*'' . 3 .269 4,448 2,698.2 2 42141.3 . An h-gh, . 1 ('1 12 '15 397 1 98 5 15 1 .529 B-iso lid no) ------:__ 1') 500 3 35 196 26 6 Helena Mom ..) Q7 2, i 019 44 1 52 Honol,l, (Ha-,j) ...... 7 8728 105 502: 264 212' 39 1 11 Los Angeles ----- See (a) below) ------27 24 71 :11 2,491 1,200 98:636 III Phoem . --- lA ...... 1 1 Do E 17 2 ; 1 411 Portland g'I"").n) _ ...... 19 248 1 9 4,973 113 S 4 10 Reno I~N-d,) ~ ------2, ;441 6 2 .05 407 59 19 18 26 S It Line lah) ____ 1 12 41 1 :11 32 4 4 300 6: h Fxn-.. ---- (Sea (a) bal. .) V W 2 ji~ S 662 13 5 62 64 9 -32.(X34 - . . (Washington) ...... 4 ...... 594. . . 73 1,693 3 .1142 253 415 5036 -12, 19 fl' 'WWWO W;I 0 2 29 -4 3 P .:,*,'I Floo --- .I...... P"""'. . ------_-" ------...... : : : : ...... : : : fIts I (.) 3 23 -N Other 26t 1 283 605 U nihibitmW ------Federal to, d,pmit5 ----- ...... __. . . . __ ------__ ----- ...... ___ ------48,537 Ga . .l hit, .no Ill and ..c . , FICA credits I ------...... T,on.hhad to G-mmon] of G. . . : : Withheld I.... . ol F*"' as,plo,,. . ...r ------...... unt for E,c "Vi't,hon lu I and oil-A,, Force and No, ...... ------62 Phhndthn~l 6;chom Fund ...... ------__ ------_ ------

Totals 6or Stable mot alkiloon abox e is) C.111...... 54 63 1 31 .1 2 .1 1 :1416; .8466,604 cb! Illinois 16 1 222 3 3261 3 57 6 :88, -4 11116 Now Yro k ------2 5 4151 11 .4612 4,817 1 300 359 .630 hillII Ohio .__ ------3 2289 457 12.209 KID 2 :5'22 357 -4.6lil' I is) TexasPennsyl------16 60 6 105 2:254 2641 395,1 --4 1 362 Vl 6 47 ; 550 33 5 :664 2.678046 07,2333 129 128

Table 3-Internal revenue collections by sources, fiscal years 1974 and 1976-continued Table 3-Internal revenue collections by sources, fiscal years 1974 and 1975 (in thousands of dollars) (In thousands of dollars) R I Fiscal year Sources of "'Imu, 1974 1975 1974 197 5 Stamp lose* 0, documents. other instruments . add playing came. total I------_ ------_ . ------20 7 11 3 Grew 'Pou, .11 Be- - ...... ------268 .9U.254 293 .822 .y26 Manufacturer 1 11,190 on- total ------...... 5.742,IS. 5.515.61 1 Comomt .D. Inc... I-n . WO.I 11 . . . .------...... ------7=444 5 745660 4 .087,669 3.91 R .gul ...... ------_ ------41,725.250 45 .723,608 LGo""".b. -~' ,g Irl"c'. I ., ."me, per gallon : cutting oil, 3 cents ", gallon ------105,723 91,05 3 Exempt organization business income to, ------...... ------19,193 23~052 T,res j .hol1hy'orYnhig type Dart of rubber), mde, tubes, and Imad rubber : - I, . 10 Cents per pound . other, 5 Cents Der pound -cept hudinateD time lot", lmfi .itkull add . .W.ym.nl .1.1 ------hillman lypa used On nghemy yehict-), I can, pe, P ..mJ ------768.776 647,187 204.997.20 226.S40,24 6 ne, tubes 10 cents per pound ------I ...... 32,791 27 .989 Tm. wbldlt, 5 Income to, not withheld and sall-Impl-lepwrl 1 ...... ------33,820,060 37~712 .721 ll~ Cents per pound 25 .690 22.484 1 3 Motor whicle chassis, bodies part,----- an d ------acc-nes : income in withhold add ddl~ago surAyons, DesistA; and romptai insurance ussest, WWI ~ ...... ------168.188.65 5 m .II23 300 M-nt I ------6.049 3,343 RaHroad retirement . total --- : ...... ------...... ------1 .507,9921 1,616,14 3 Passengl, ilub-biles . chassis. boom, etc ., 7 : ------Unemployment ma...... rnploylis of I or more person, .1 any time in each Of 20 C.1,W8, ween . T-ld, and th,dres . ch,,i,, bodies, etc.. 10 percent I ------'_ - -- _ : ------519699 534, 158 Pam aInd accessories for aut-omes . th,clut. etc ., 8 concent 11 ------120,1104 1 Z5,06 2 or paid wages of $1 .500 or mom in any iutlencar quart r, taxedi 3 .28 percent, elfie,ti,a January 1 . E echic, go, percent I ------____ ------973 and 3 .2 Percent . on 1 .480.574 1 388,082 . and oil appliances. 5 . offect- Anuaq 1974 t..:b,. Mnu)n of wag" ------P:sIols and myolwhs . 10 percent ...... t------11DO1 ------Mui, ns-ro," .10 C-1 I------...... ------E=1a,,resDO aft7ados miss from 3 Mcmd on first 55 .000 a net lopples, excen, a Sod~uutl Founng d,. Cne 10 percent ------16~259 21 .099 percent on portion or SIG,000 .0)0~ aloof allowed Its State death toom ------a.6511.825 4.312.657 Bows and p' .r... I ------51 .54 GiftWPmMd'WSIn, gra,lp% aimJ~ poicairl from 21j~ch Parcent on find $5,000 V M aspeft 0 $30,000 Firearms (other than pistols and -Nyeni), shells add cartridges, 11 Percent ------170 portion over $10 .000.000 Annual nduson to, each donse . . . . . ------440.1149 375.42 1 Retail,,', esom, I-- . wd,I . ------416 .2n 404.1117 ExIms, haid ------17.109 .110 1674 74-T-1 ~ nc. .. :,O::~:cmn .Ofirm. 3 Cents per gallon ------...... - 10~1 :171 1 21 :~117 Alcohol man total ------...... ------5 .358 .477 5.350.8so No t-I other than gas,lhne, 7 cents par gallon ------Distilled spirits .tot ...... ------. . . . 3 .91876, ,.97 3.665.162 Diesel and special motor 1,'elit. 4 cents Par gallon (.n some instances 2 cents par gallon) 373 .945142 ...... 370. . ..47039. ImportedD.m.b. . 5, 0 So P.~y IcIlInledP"~s C I d 15 4 704,51 3 11 0 der- 1 - . . . I Didget'~,mm'win "i.n .I nr='"p~l ...... ------I------3.1 3.124,645 Percent I ------Rectification 30 Centse per proof gallon ...... 0 ------...... ------24 :4003'4 22,15 6 Furti, 10 M-1 Ili ------occudP:homi thdr mlin preparations, 10 M,Cem ------2 age manufacture,, of spirits. $25, W. SIGO . per year ------115 80 Fact Im- M!... 11 ...... I. . I-Im. title, ------...... 3.15a.037 3.305.9" LessgoarP2 In 'Col0.00 pro,f0 .gallons, $110 Par year ------: : . . . . . : : - - 4 gallons mom . S220 Par yea, ...... 21 23 Altail dealers in hquo, or moduc-i spirits. S~ per Yea, .------10,850 12,600 Ad .i,,,., t-oll. total I------...... -53 13 1 Wholesale l,q,ol dealers. $225 Par yea, ------630 714 S Rbihtdaufum~, Of stills~ $55 ", yea, . . . 5204 5,4 Theater, . C-ens . athlebc contests, etc: ..I. .1 ------: : : . ------Admissions, I cent for each 10 cents 00,rgajo, frachon thereof If the amount Mid In a . .,. Of S1 ------1 11 "0. "IX"or ond-sam '" .man,faclurec . S22 each - ...... ------2 33 1.,- Of boles 0, salls . 10 porpurd .'heto, amount.] for which similar accommodations are sold ...... -- : : : : : -35 ClubFOCI1guard o n,, Cabarets. -- 10 percent paid for cmIssions, sanAces. etc, . . ------172 1 Whiets, arm., Us .& Ist.1 _...... ------...... ----. ------GTI S 177 .111 3 andr nitration loss 20 Percent lit dues a, fees are in -cns of $10 per year) 21 ------T .I .Oh .-" - I.I.typ .w, .tlr :,Change s ...... :- --- 1,8927316 2.023,744 19,259 Tm h of persons by rd (which i~ 59:1~ 750,641 ImPOItWiCIlint~byCusto,3,,etesumeasdo,ast,c)t ------18 .031 party Domestic (efili-no 217 cards . 67 cents. S2.25 per ~,Idm gallon ; ac-fing wimm . S3 .40 : arhfouilly Trann:olr`~hohgnDo"m : .,or Iyac,' I MrZnl 'I'MI 47 .332 40 : liqueurs. coroull .. $1 .92) ------154,358 Use of i Ar-h-l 0., De r ------56 .908 52594 0 carbonated wi~ s 150399 Coconut and the, ~egelabl,f Pill, processed. 2 cents For pound m;-am efmchye August 31 . 1963 37 120~------. .. do." nn'teirm. or in win.. and bear SSa par ~ear ...... ------3 .483 4,296 Sugar . approximately hill -cerd Par pou ------005 1M .769 Wholesale dealers in wines or in wines and Me,.S22 per yea, . . . . 374 377 N.-le . add on-himn .. total r ------...... fee Is, Beer Open, Wbj ...... ------1 2;S .. I ..087W Impol (Collectoel by C, form . raise samm a domestic) Marihuana ------1 53 135 Domem"occu VIC. $9 rmlper be PIT g,Nons ------1 .~J :1 913 1 .21931,633986 B=10mil hu- Coi-Mraledl arrunniont dwees $10 par dayme, Par year, bo,hnq alloys, pool table,. at'. S20 per do. L ... Co.'Il!oy or table, par year ------_ ------than -I,,,$,5,5fMrmomDo y so...... I 2 1 Oersted gaming Omices, $250 per d-ice per year ------6,5711 6 .82 so 6 3 WmeCun g inal : Retail Dealers in beer. .24 Par in uhn, or beer, $2 .20 Par yyp ------th) ...... ----- _ _ ...... _ _ ------;naI't.x,,$:,0,1rg.,u tr w,1 'lied 6107 5,227 ...... 2,488 2,831 8 Wage- u 451 540 Ment, dealers in War. $123 per year . ------112 97 ------Use to. on In 'ghway wh,,In weighing over 26 .000 pounds. $3 per 1 .000 pounds per year linstallwaint 'miyilages pernuded) $,-5 ------198 .462 207,663 Too. ... total --- ...... ------2.07.~65 2.315.0;~O Is, on c,v,l ai .. .an. per yea r -eng-i------powered mmr 2 .500 pounds Or V1, cents r PounDon tu,b'p`-rgs' d 20,786 20 .959 cigarettes. tot., ------...... ------.------...... 2.383 .038 2.261 .11 6 AduIIeAmdJ bufferand and I!j cheesedo imp AWnbc) .'rPO,emn-mad -~j~ter -;~~ "p""d of,, margarine ------...... ------3 Small (Class A). S4 Par thousand ...... ------2,383 .018 2,261 .099 Firearne, Mrster arid a] taxes" - .- . ------232 28,2 Immn,is W16, 32 1 .1. Large.so (Clan B) . $8 40 Par "'usand. ...of if - 61h inches long S4 Par mousaddl to , PrepaymentIn V1, rich Or I. .. lo. thereof ------...... ------18 16 F. gn =nce ------...... --- 914 19,456 2 1 - Pdlyabo lapaidations ; tpoal ~ ------_------702 65069 Clear, . total -_ ------* -----. . . .---. . . . ------. . 1- .. . ------...... ------...... -. . .- .---. .- . -. . -. . . 51 .5111 51 .226 Net inyestment income . 4 percent ...... ------69 :802 63,826 - Sol6"as I deal,, ngde5 Percent I eadf-Dimer . leduser of S1 0 .000 Or 2'12 percent on fourcati- huimig r ------229 324 Large ...... ------49 .074 'utj I,b.s, Ile h,ld,ngs, 5 Percent on foundation ------3 1 Tnab -p-diftres . 10 percent on foundation. Immor of 35.000 or 211, percent on to-dabod 1 F, lure to file cartain Informal- raturns, $10 mf dj up to a ma-uhn of S5,0(X) --- ...... 16 54 91 C:&ssAs A lRemil2n '?I .1 notnot 4c,nCaM1Ch]L S2.50 or, tho,s nd ------16 77 As saabl, penallme ,in respect 1, annual reports. 10 per day up to a . rourn of $5,000 Can .. canwi each ------S3 Par housaind ...... a1 1797 W B1 :315 ClasshinBC (003e~ , 6 C4 c:n n:, :n.: 01:; .6 Carl nCh~: $4 M ; :h usand - ...... :- :_ : - : 460 Farm to distribute income. 15 Percent of un distributed h ..m. ------360 n on Inn,'oshrium . .hiCh jeopardize Charitable purpose. 5 Percent on foundation, Issue, of $5,000 or to $7 M do'sand ...... 7 :351 1, foundation manager 6 ------CC,. .0. E 0"' ( 0, a Cents . not Oye, 15 Cents eachl, $ID Par thousand ...... 2 6.~'2'7 11. '73 s Us P,oImNIpd`c-. .. if, =hon, ...... ------ii CjnAs: F. ,=rr 121fican c,,t.,. each)L20 C not in . $15 Par thousand Uncl d ------1 .4i -5 .082 Par - no ------4441 "668 ...... 5-11Ct o9tim, 75 onto per thousan d 2 .481 2,472 Prepayrnann _ ...... ------...... 26 20 Imported 09=1 agaushes, cigambe papers and Cigarette won (Collsomol by C.W- * Isme M domestic)...... ------...... 909I ...... 1,251 milic.liarmou. Iop - Do.------C'gamm. P.M . .. luce., pop.. onewhaft ved M 50 ; tubes I cent W SO . . . . ------1 .477 'Jei 130 13 1

Table 4-Internal revenue collections by principal sources, fiscal years 1940 through 1975 (In thousands of dollars)

Inecome and prr" babose Footnotes for Tables 1-4 13 . Rate, of mr, am as follows; Individual income tas : Effective January 1, 1965, graduated rates from ill clarc-I to 70 percent of [Wable Income. To., Col. Employ. *Less than $500. Includes old .,an-mi-sIodestolily. .. .plot n. . ... IW. on aoll~ Fiscal 'W ponstio. Estate Alcishol Tab .. . an ... Inc. . nc The I - nt,pe,o=, --ge seded by Public WhalI faccons, :nIfilld-I 'sma.of turn., AN m We go t so.- .the, r Revised . .Law.ofD=t effective April 1 . to Ind Wtandled to Dec-lbst, .. . 3 0 Tot ., -dP a I I to.. . I ... . 31 . 1969, at the same annual hate (Public Law 91-53), onmrsed to June 30, tells1 1 . 1! 1 . The receipts in the various States do - indicate the Feeeml to, burden IWO (Public Low 91-172) at a 5 percent annual mue,and thendi .conanued . I= Of WCh since, in m,ry nslancess . mums, are collected in one state film maidents of another budle . For Warnpil, withholding Islas leponedl 14- Rltm,Ct tals, am as follows : Income To, gmanlated withhold,rpr, wages (1) (2) (3) 941 M employ located near State lines may include potential mount, in ..cess or @,emotions : Public ", 119~613, effective July 1, 196 . 14 W 33 (6) (7) (8) (9) (,0) __ withheldby percent : Public Law 91-172. all .cu. J .nu .7pl, 1970, 14 1. 25 Flunem: 11 1. INOI ------res of emplo,hm, who msid-, neighboring States . 5~140,4~ 2 .129 .609 1~147,592 982,017 633 .521 360 .071 624,253 We.51 6 .7,088 337 .392 from sets 36 percent effectiv, January 16, 1972 , no,, IONIC Law 92-178, and 16 to 36 3 .471 .124 2.053,4169 1,417.655 925.856 407056 020,056 898,(F77 617,373 2 includes mues on bluntness income of ,,,of olg-cl .a.me , plucent. effective April 30, 1975, under Public Law 94-12, Old- .go, s-nom. 10.1:11 BOOM" 4,744,M 430,564 d,salOhly .and hospital meorenc,FIC lWas on sala- and wa?es up to $13 .200 943 ------3,262,800 1,185,362 '2540 048 .51 7 78D.982 771 .902 821 .682 3 . Collection, of individual income to 22.371 ~38"e 4:298,888 9 .068.956 6,629 .932 1 .498:7 511 . 11 423 Bull` 923.857 . not withheld include 10-age . wom suiptnted to a combined I A to, rate of 11 .7 percent or balance, years 94 4 40.121 .76033.027.902 14,766.706 7495 ea : 504,746 274 .040 survivors, disability . and hospital ns-ce moss on sell-empkey-n-come, 1974 and 1975 . Efterctim January 1, 1975~ the bass was ,and to $14.100. 18 .261 .005 1 .73830752 .210 .610,775 958 .483 SC3,462 U33,655 Similarly, the coll-lions of individual IMMO to, withheld 1, epic inC. 43 900~389 35.01 t6 Combined. on amounts ,In One. sullvom, disability, M hO'pmI ns= 15 . Consist, of mi returned retirement Combined tn . at, of 21 .2 percent '046I .027,213 19.034,313 1 .779,177 643 .055 2,309 .1366 232.145 7112,511 2.292,100 amto, Onendar 8 years5 1974 40. 172,011731.258.138 12,553.602 18 .704,536 6761 ~700,82 0 saur- and wage, sumetw seeparet, national totals for. . onceindividual shift 1975, To, tells, to employ,,, (15.35%) and! . 7 306 29.019.756 9 .832 2,626 .165 1 .165 .519 922 .671 2.421,9" le"income to, and for old-ag,, 8-101s . disability. and hospital in. ms.' $1 .ployeet,15,15%) of nduirmpoesdontambopomono 1, 1 US ------.676.459 tg .343297 2.1411.' :~42 inge771:1115. 2~41,1622 1 .131 .7 . 1 .421,2 . 2 .147 .184 3111 110,. 31,172.191 10,174.410 20,997 .781 2. 3 are shown in the test totol, on p and am - in obtaining national retain thnthly fZ3`$"417'T1Wbumbl, compensation for 1974 a 1 .1 or Ii 949 40.463,125. M2 29 55,327 1 .3DO= 1 .649.234 22015 .1122 for Individual hcorv, t ...a hol employment to,,, in table 4 Further100 includes railroad employee representatives' tas of 21 .2 parcell let .605.491 11 .553.669 18 .051,822 2.476.113 795.538 2~210.607 1 .321JO75 1,771,533 2,200.969 colondaryears, 1974 and 1975antountin ponion otcomponal received, In 4 . Self-srhiploy-t 1. and! ...a imposed %the Federal Insurance Colin- addition, a supplemental Ia. eved quarterly by the Railroad Retimemn, .007,659 10,854,351 17 .153 .308 2.644575 706227 2,219.202 1 .328 .464 iwll 2 .214:9151. Abuttons Act am applicable with - .pact 1. mm nal American 653895750 :44s'lgg. :~18166 28 3 :1.17 . 14,.7:N9 22 .9117.309 3.627 .479 729 2" San"' Boordhour welleis imposed 0, employers and employee mohnsentauved based on mon. 19W ------.730 2,546,8011 2 ' 77.:6 2 ,withmounts of such union collecled. .. in. .c G-. 0, I American r .m . am Combined . d 507417 .017 21 .465910 29.274,IU7 4,464 .264 633.147 2 .549,120 54 hum, mu ., ep.m. to International Oponnuorns-Ons , 8 .535 54 .130.732 21,594,515 32.536.217 4 .3 2407".1133 'gi IOUI '" :111 :.413 al 2,780.925 :654.911 2. 2.71113 2 .647,492 S . Beginning with fiscal yen, 1 6 Issue and transfers of stocks and bonds. repeated, effective January 1, ":9"19,991 54,350,014 21,546,322 32.813.691 fit COT 23 035,121 2,783.012 swvm 2,86669.133 2,464,059 1957 . the United! States total a adjusted to Cases of Conveyances: $I DO to $500 . 55 cents : each additional SSOO or ,,,rude withhold individual n,o,, t-en transferred to the Government .1 ,,actionIT . theme' . 55 cencs : repeated effective January 1 . 1968 . 66.298,692 49914 .826 18.264 .720 31,130.106 6,219 .665 936,267 2 .742.840 3 2 2:.01,1:1 Guarng SaCcomanc, with the provisions of Ptiblicil-aw, f,~O . approved Aug. 1 . 75,112 56 . 21 .298.522 35.337.642 7295784 1 19501 let. 392) . This adjustment mounted to 16. 0 million lor 1975 , mp'WadCutting effective oil .January utomob,l. grts and accessories le.cepl truck pare, i9s7 ------80,171,971.978 60 560 ' .171,237 2,920.574 "1134.7 3:4BillW " 2 1 . 19 6, jPupI,C Law 89~4) . 1.9 ------425 21 .530.653 39.029 "2 7 .580 :522 1 An.9" 2.973.195 ; .i74.050 3.761 .925 224343260 6 . To, payments 195, ::: ------79 59 :101 :171 20.SMX6 31I.N8.5N e .644 .386 1,410 ad, to banks, under the Federal to, deposit system . are 79 .797'476 .925 2.946.461 I .rM .021 3,974 .135 2.166 .675 incl died in the Internal revenue coliec hons for the Period in which the 18, T-as on passenger automobiles and light trucks repeated Decombe, .073 Si 254 18 .091 .509 4D.734,7" 8.853.7" 1 .352 .952 3,002 .096 I'Soli 3 .9611,789 1 .997 .292 Federalby to, d,posul is purchased . However, .,ch Payments am not Classified 11, 1971, by the Revenue Act of 1971 . 11 paymentsinternal mj, venue districts (no, by to, subclasses to which Wcue to, .:477411 0,1 12,11:.11 2,1:,1 .19:.4140 414 .:111 'W 1211 :~11. :41115, ~ f 3.11,714 1 .031 .504 4 .735,129 2,004 .394 L"Payansliatolilyfrontlannit:te' until I he lederallits 19 . Repeated, effective June 22, 1965 (Public Lay, 811 67 :91 916a .392 3,212,801 1,M .117 . deposit payment is applied to the 1962 ------JDS99 .44JIS.9253959 715 :94 X S21 .295,711 50 4,896,802 1,963 .582 .m. led. 20 . Repeated, effective noon. December 31, 1065 (Public Lao, 89~) ;963 ...... 649694 12,700.171 2 .035 .187 3,341 .262 2.025,736 5,120 .340 2,264,817 7 '891323714 22.338,1214 52,987:561 16,004 .486 2,187 .457 3 7 . R-phosents credits allowable on mcome to, not-s for carom g,scen, M4 .44 1 .656 2,079.237 6.610 .309 2,278 .536 21 . Repeated, effective January 1, 1966 (Public Law In i 112,250257 78 :218 24,300.863 54,590.354 17,002,UM 2 .416 .303 3.577 .499 2.052-45 6 .020 .543 2.299 .545 and! lubricating oil Is, payments CAand, for WCe5s payments unde, the Folderol Insurance Contributions Act (Fli ). 22 . Rate anas reduced trm 10 Percent7 to 9 percent onI January 1, lW3, to 5 .:131.":1 79 .79ZOIS 25 .131 .334 53.660 .683 17,104.306 2,745 .532 3,772 .834 2,148 .594 6 .418.145 2 .453.406 per" III on January 1 . 1974. and to percent January . 1975 (Public Law 91- 19,05 "412 3 61 .227,562 20,256,133 3 .093,922 3,814,378 2.073 .956 5 C,:C DIsiration by to,payam of a portion Of thin, talms to the Presidential 614) . 1411.314 :.9715' 1 :21 .3' :4.' '34' :9'17 :8'2 .613,869 11195,909 lion arnpaign. Fund am lot collections. as such, because they do not 53 :' gf~212.:1 1141:Iuo. ~ 3 :0.14' :406 4 :.7'1:27~3 2 .071,869 5 .478147 2':4711 :11 affect t"pay , hablity 23 . I Cent per ounce 1.638,530 5106,140,565 " 29A37'.S2. 111 :252 .5'5 979 428 37 2 .12Z277 5,713973 2 go . Transfers of amount to this fuels am made on a Narcotics, : narcotics OMer blames, Sl Ce, hundred . 1969 ------187,919.560 135,778.052 38,337 .646 97 ."0,406 33.068,657 3,530,055 4,555 national basj: nlyi,nd therefore have no affect on district and regional Ma,ith"na. $1 per ounce : Manlius- older pi him, 2 cents each . Amounts .560 2,137,565 6,501 .146 2,348.495 collaction data . shown 1110 include occupational IWO& Wrap on manufacturers, Coal- and 195722,0961 , 61111 138.5611 35 .035,993 1133A 37~449.188 3 .680.076 practitioners24 . Red-led, effective May 1, 1971 (Public Law l i 9,7? 91 :047,106 31 072,374 30,319.953 4 746,3112 2 .094.212 6.683061 2 380,601 1 9 . Amounts of internal mvenum is ... colinted! on Purim, "cumlines pnoolucto '12 100,75242511"51 39,918.690 3,784283 4 :eoo.4a2 2".585 8 6.6 4:799 3,179.985 transported to the United States or tonouthrod on the island rolu nds, . R,paaaled, effective July 1 . 1965 (Public Law 89-,14) .' 209JB55 .737 '43.004.732 34 .925,546 108 .879.0 " 86 541 :7.11' :,101" , 5:45.al:9.129 , 5 :f'O.OOh 2 .201,2731 5,729,6S7 3,801 .IN drawbacks 973 237707204 164.157.315 39 .045 .309 125,112 2 . and astrainues) are comhord into the Treasury of Pulm . RICO under 25* 1 x incremed from 974 268,952 .254 1114.648.094 41 49.513 2,276,951 5,395,750. 154 371 . provisions of W,, . 7652(,)13) and 5314(,)(4) If the Internal R . Code S50 to $500, etteclim Common, 1, 1974 (Public Law .7",444 142,903,65005 62 .093,632 5,100,875 5 .3511,477 2.437.0015 5.742 3:572217.10 15354 The gross mount, 11, included in overall collection r.".. 11,. IT be. .11 gKL.4gi 1975 ------through". , 2113.822 .72111 202.146.097 45.746.660 156 .399.437 70 .140,909 4.689.079 5.350.838 2.315.010 5.616 .611 3.665.10 Lear2693. Role.~y reduced from lOpenceent lo2prinford, effecore Decarriber 1, 1074 Ilital Real' ) 1. Table 3 111 . ..p. ..run. i 11 . Includes 1m,f Inson on document,, other instruments. and playing 27 Adulterated bull ., 10 cents de, p.und,.Po":P C .,ur~l;, amid! bull., V. Ca ;ds arnounting to C101.30musandl for fis-I 197 5 ent'por pound. DOMOStiC filled ChOmm, 1 , P . Imported filled ,the". 8 cents par pound . iMPOMW actulenfle,J buffer nd omo-liang-ral. 2. Corporation in . MI.,: Effective January 1, 1965. hot $25.000 of cents Per pound, O-pat onal laims are imleel on manufacturers or net income ortmal lu of 22 percent: net hCome in -ces, of S25.00D 1dimlems 5 in than, products and are included In the &IQUIM Shown . Filled combined normal and s,nu 48 parcem. Nominal T Chase, harms rerviml,ci effective October 26. 1974 (Public Lov, 93-IN). to hot Income delved by wtadnI of, 'MeW-pt. . 10or,gnporm "Ori-stroto . aunrelated"n" at" .do'Polyor bus asI I. Effective PublicJanuary Lw Par mmurn untrang. onas 21 mile,, 11.nomachinewith C.mbg.h,. firemims . s,l.nc.m, We . 1200 addZ he Is. . I 9~fli The 10 i,11,91. _V nn, $5 ownDhabon shotguns and file barrels, and other was Whancedl to D cartoon, 31 . 1969. by Public I WeludX~'o"J" .": :pecol type . .1 hmarls. Occupational loans are wed! on ma-fac. 30 , 1970 by Public Law 91-172 at , 5 percent ann,al rate, and then t,rem, nmecumm, ti, dealers in imarms and am nch,doe in the amounts discontinued. ,hosim . Jo29 . By E-cutows Orders, .1 . Induced from 11 .25 berceni to 3.75 percent on guary 1 . 1974, and.100.,te.,704on January n. 1974 . Legislative 11thonty, to, the -Pred! on June 30, Negallm figures liucluding -applied colledtions) som primarily from I,do,RW ..,,0-1A 0 'ardits emn on -,I.,n I-es *posted by the E,cise To, .n ., of 1965. 132 13 3

Table S.-Amount of internal revenue refunds including interest (excluding tax rebates) (I It thousands of dollars) Table 6 .-Number of internal revenue refunds issued (excluding tax rebates )

ImI income And ImIlIkI.-I I---- end internal --, reounu . distn,u . Star,, said employment is . " difurlett Corp.. . I-nul -snu, egkm, . . Stores and Intl Corp.,.. is .. . .1her ...... (a.,. . represented by Single Total I far, Estate Got E ..i. . - (States epresent,d by Single dutncu libil. Total Go t E .clas in enthrisse ; trade for otherdistrictStables E ..I . . addrominW parronthessididefe) foods to, other Stable an-. at bom E .c. . . 11. Estat e Shown a bM= of bible) I.-- IS . or.. Other Pay Par 0 1 (1) (2) P) 1-) (5) (6) (7) (1) (2) ( I (4 ) (5) 16 ) (7 ) M-h.ad'-deUnited Sul. .. a....total...... -...... 32,2oa,671 .5,290A33 2s"4 .032 1 .068,527 79.304 5 .496 300.1120 United States. total ------67.834,472 359 .2M 64,953 .020 2,433,296 26.368 7 .033 55 .519 4.969.691 1,092612 3.n8.117 93.53 7 17.928 2,074 25,424 klinth-Atemix R .gnm ------9.824,016 62,067 9,424 .935 316.2a6 6,050 4.1 7 10,502 AiNny .113 25.451 203.384 3~356 763 7 153 Albany jSee I .) b I-)__ 565703 3 .070 SIS .155 312 31 481 Au,,,Ia ISee (c)------below) ------233 Is 2165 2,117 604 Augustaads I M-J962.) 7 1333D :328 2.041 31 171, ISO 1 375. 1 =k. -a' 113.,08 .0,Z. 1178 12'a:. 933 M "A l 14 .628 2,476 6741 2 .310 on ------(measech ;Wt~;) ------214 .3681531 ABM 61o 57 .M6 on 3 .592 M2 ,-O"Y" 805 fladal"2 .322 41 :1 00 aBnocklyn ------(See (c) ~:Iow) ------2.105 .164 13a 2:o3 .179 59 .276 ' .4 ID6 2,059 Su !,S*. : I~, ; 'Wid". ------667.920 98 .914 575~796 9,885 7 5 of 1 :4 . utfal ------Ise, (c) tual-) ------1 .518 .401) 11 :645 467~254 41 .328 813 83 I,Z76 S.M1,11-h IV.1morl) ------48 .282 3,483 43.383 1,2169 ISO 1 46 Burhngton ------(Vermont) ------143 158 l .D76 35 :233 6. 2 88 4 I " Hanford Connecticut) 595,298 1 08 155 463228 . :S71 2.621 1 .079 10.438 Hanford ------(Corn,cu,ul) ...... 1 .217 .717 6 .N7 1 . 173 Wo 3s '68 700 IDS 2 .100 Forr.m In IS ------1 .221 :531 605 :806 571 :54 5 `6 5,~42 1 . 4ada sunhatt ------ISee (c) bal-) 1,380,804 15OS3 1,294 . 218 679 .34G 1 .442 198 2,523 199.946 92 64 1,923 43 Portsmouth ------(New 276470 2202 264,431 548 129 171 243 p "-dJR ode129,17S13 Islan ;" N 07'.3508 2 .006 253M 32 .'40 all Pm,id ------Rh,culaund)Hands'! 323,450 .312. 24 8,757 2 .- , - 1------41619 .055 752 :85864, 3.7.,929 36 .22a 11 US "a 41 .1 d-Atemlic treat an ...... ------9.90.182 41' :1377Is S ~7 .8110 296.605 3 480ad 9 .161 M4 Bell""*, swa M _ I =d ~,ndl) 1C.) ---- 839,405 107,215 710~137 13,981 2,788 403 4 .881 Ban-,------(Malyuld and D.C.) ------1,756,966 6,483 1,698,235 50.759 .3'a449 947 ...... 1,277,852 213 794 1 .013 . 70 27 .580 4,434 Newark - -- : I"* '"") ------2s48,325 727 2,4 9,627 79.971 1 sso ;4 8 2 . Phludtiphin ------(See Jet be ow) 1,099,291 207 :918 ass 291 20,321 1 A95 114'0 il=:a24 PhP .t~1~1~durglph.S : :Sao: : : : : (a) below) 4,5192,392,629 1'o :327 2 34D3 82 75,331 678 M .348 Rp '"=nd' 1 78,0 604,099 1 513,861 9 .612 665 24 ISee (a) below) 1 .429,515 1 .38: 057 35.775 256 39 :69 ic ------637,533 55 .465 5MMki 12439 40 2 1731 Richmond'an ------I"'9 in') ------7,1 1 .58.ItsD24 1 .527 .039 QS 2 376 63 M Wilmington ------(Dole,,,,) ...... ---- 160 .875 90,095 68,066 1 .692 151,a, 28 gas Wilm Delaware) . ------193 :723 2,511 1 6 .257 49 17 1,792 Southeast R,gl,, ~ ------3,7116405 614 .228 3 .0SD,fM 99 .129 a 2, .= Soulful- Region ------NATO5116 .1311 11,15. 364,112B 3.001 ITS Allen, ------. . . . (G-gu). . . . . 699:798 M 672da , 62 4 6 16.607 .719 675 loe "o 9~267 AllenIS ------IM 015 SAW 1 46515 71 56747 M2 66 I'll,I ", a BurInght, In ------(Mo.-) _ 366748 m : 3214705: 8.9117 4 466 j.11,11S C.), ---:: ------I . olB,906 3a16 976 .722 35:328 165 45 aw G an. 0,6 INOM,South Carolina) ----- 285,236 29253 249 .461 5.959 95 11,if I Columbia olina) ~ ------858,691 3 .859 1,827 .021 26)883 . 51 Carol.-) ------612.611 1 M:I27 474,884 11.907 1,46o3"2 so 4.054N Greensboro ------I Onh Cadhna) ------1,06096 9 .478 sil S74 52.0,12 .390. 74 1,231SM1 n,,,,,----- :~ : : :- 113,942 5.654 .59,r 1 99 157 117 jJ:,Ckl.n ------576'(09(Missisuppi ------2,44D 23,235549 .588 117 27 602 Z=JNacks' n 1 . 1 3N5 :IRD; 198,384 6092 .877 37.193 428 "557 No "on,ille ------2,592,398 17,379 11 :4413 :1 1 126.621 1,531 253 1 91 Can, .ndfle .n.(11... .no...-)..... 51)(1,240 68.765 12.882 4S,o1 .81o 169 6.1 25 shrifle. . !T"Oh"). . . n eased) ------1 .=,015 5 .174 12611 43,972 285 59 ,21 A .gi 4.6110.759 39 3.71146:""7 079 6 .4 5 353 23 A? Central Region . 9 . 581 .641 43.300 9,246 n2.356 2,732 32 3 5 .96790 C,CuT-undnonnati ISludi------So b:! . b ow) 85 657 1 63554498 t71 64 1171 65 3:236 C:n1.mn,1d1, ~SeS. ------tf~ blllw~ , 1,496.038 7 .191 :"5 .335 42361 406 52 . 978:083 151 .7039'7 107,083 17,377 1 206 67 1211 c : below)Id------8962,063.40 B456591(1 1 1 566 56 ,014"743 Detroit --- ::: :: ---: :: 1'.1 Nd)-. g I------1 .756558 447A59 1273,061 21 .546 1 665 79 12 Detroit ------(Mlchigah~ ------29171146 7 4 :24D 992A2D4 :212 8o:M2 81 75 Indunj,oolis ------(India.) 721,03 ,~443 626 911 14867 1 .59 so 3,97~Ua0 Indianap-lis llnd,,n,) ------1 .666 990 5,734 1 .603831 55426 55' as 1,359 Louisv~116 ------(Kentucky) 360.123 30,415 318:28 :701 655 29 2,042 Llui~111, - Kentucky) ------3 ON 3Sjo 895959 32 .997 266 ON Parker u,?------(West Virginia) ----- 186999 is IS I 1 2939:63 1 .124 lo.4 6 63 188 1111-tou,g.Hm ntl) ------5M.496 2 .143 486 :728 14,11 9 125 22'7 354 Sir1 dwest Reg on . ------4.409'749111110 021' 7~1 M "2: 62 M 421 25,766 Puld-st Ro ------9 .334,971 n. 53 8.8114 .962 383 Sol 4 .206 7,81 0 Al,,._;*n 1 .11um Dllru~ 57 5,035 4 711 1792 64 60, 87 ~bem-n D.I .I .) ------172,993 1 .026 157,724 ~:844 62 0915 322 C. . ad 1,579261 368,758 1,16 87:917 33,174 3.71 D 62 5.640 Clucag . She to) below) 2,853650 14.712 2,746 1,134 ia 1 .647 0""'.. ------)1 he -in ------(North 1h.l .)!, ------326.1lIl 52.269 Of 261367 13 0 851 26 892 ",in" 711:1271 4,385 737278NO a 4o1j 55"I 611 2 Da!,Wti~ ------64:866 112538 447,,PII 4:6 as 7 135 Farg mnhIIN ~7 as a .74 14 784 13,296 04 17 ,lo970255 Mil.. .k ------(W.-mun) ------624731 3:762 1 95,554 12.N573 1,35il 83 ",6 Mu- k. ------(Wdconwn) 1113A24 3.52,a 1,351,503 51,05 676 05 "a Omaha ------(Wb... ka) 17 5481 37:483 M, 1 ~806 11 40 4 Omahu .~38. OB 405,365 29,057 263 L 649978 ,740 505 370 Is 642 467 82 15,47 St. Louis------1 35.265 1 o: 6731 :36 .01 9 57.563 a" 78 1,323 SK 1, T------1 "3,350 556,878 99,91 11,850, 659 25 1 , 08, s Pau Il,finm--)sea d) ------.6,17 145 .046 44,792 395 46 1 " 1 5 field ------(Sa . (b)TV b - SO 54500 314,086 9,0011 1323 63 974 SoI nOL1d Nlow ------876.415 3556 833,643 38.060 .9 79 6(08 .Uffy-lSp"n' Realan ...... ) .. 25706 410.771 2.724247 110.512 5.907 361 7.70 9 South-St Refit on ------8.1 12,478 42AM 7.69B on M2,3111 2 .357 3113 .396 AustinAll ...... IS_N..(M.~i~ I);j ------901123,0117 0.523 11 0 025 4393 71 1 61 Alb,q,erqu,_ ihow(M ..ic .) 339.968 1. 91 325,123 13084 67 13 :al 129~251 743,029 26,159 I'sQ9 a, 1,668 -- Sea f)bel-) 2,197406 9,228 2 .1oo.531 85:243 485 95 1 .8241 10 =nn, ,, . . .:-,..:.:.:.:. 66,41 32 4E If 2~902 0 41,511351 1,792 , .41115 4 '36 AustinCheyenne IWy*(,,n,,. I) bar.,,, ...... Is,1 19:51 1,079 11 1,625 6.672 as 10 1 6a74 21:116 7 157 3 .760 Da Is, -- So ., 561 1,481 :772 78.172 517 93 1 '309 Do- ., ------IC.Ioud .) 375I ON 40,677NO 32o,ao1 338 773 30 288 D. .773 s:5'582 Bda4ai 35.024 2161 37 543 Little 0,r o .k ------(Arkansas) 93,iI4 21 .764 982 279 11 210 LOUN n"ron. Flock.------. . . . LA -----.I,, (1111lddo~ 153 849 2a" 524 .545 25.Mg 31 430 New I -...... (L-suima) 4053 .48 38,921 3653 :3808 11 :137's 608 33 436 .na u 037,369 4 .696 om :621 37,988 22722 24 1Wk"111011h I.C. . . (ankill-, N,375 29.435 2582 7 15,563 527 1 a 597 Oklahoma City ------(Oklahoma 777,803 4,1 5 733581 39.084 312 3 all646 be ...... ,) ------256.304 28,689 ..932,4211 :112. 586 23 473 W.Chic. --- .666,17, 4.274 619 .680 41,375 if 36 45 430 Western Rest . 6235.852 757 .489 0 134 268 16 11 .1112 ;; ------29227311 Moill Men .975 401,12 0 04 633 ra,~ ------80 :1., DO 2236 75 .0617 life2 1" W"t'"`AnchorageA'gi - . ------(Aualk.) ------113,654 1 652 111 .8 14:980 2 "09142 Ildah ) ------I ------90 12 Fil 1 T7 60.809 1'89141528 o 804" Ild .h .) ------233 5 498 2175)95' 1 31M 151 104 290 11 He,. . M,n-tana) 78028 4 .731 69 :140 3 .787 2493 1*111 110 s He ime Montana) 216,929 1,942 2DO.158 424 9 99 26 4,~48 (Hawaii) 146 :162 1 8 .738 124,220 2,932 167 11 93 Honolul, . ------(HowS .,,) 292.716 21260 281 .1 "33 91,.133 so is Honolulu ------2.492 .920 353 SU 2,079,71 2 46,896 7 .634 1B4 4.651 LOS 'nixAngeles. . . ------: 4 09.322:236 2Z318 4,16D .746 .889 1 .90 205 2,0113 '-P o.m A"go". aISAnvonso'cn) '" ------Us342 50813 28 .6sB IA28 37 233 p 0 .- IAri-n=-Lb-1m).) 291 3SO5 660 :711 24,360 236 32 357 P nland ------(Oregon) 362390 66,716 286 . 06 065 480 a 21 Portland ------(Oregon) ------1123 341 4,867 7 a 32453 207 30 5931 Reno ----e ------IN..d.) 113 .7" 12.4,12 97,948 2,760 553 39 Ran,I L,;; IL' 225 1 .2135 216 .179 7,6DI 53 6 62 Salt Lak, ny ------(Uuh) 1 157 .829 15,09~1 1391,2 .001 3 .458 U V 1 29 So Ition, ------372,058 7 357 .138 12.655 67 13 41 5 ~462 .420 151 :154 1832717:295 4,862 25D 4,5 7 San Francisco"------(See (a) below) 121 1.86;,75 12.906 7 2 2 :743,OB4 IOIA27 1,415 1 3 6 2, 3 9 '"Sao itF-'- I=J,"n)gZn) 52629 74020 46382 :832899 67 49 920 8 Ill. (Washung-) 4 5:o9s wa s 45,819 340 56 orfit, 11 International op-do13 he ...... ~5 21.951 IORA54 6,793 I , Car 33 '1 6 off ... of as ------IS? 1 1 571 In :"7 25,919 121I ...... 24... 1 , .2"' P"", ------11424,145 1 29 21,877 2.348 56 ------43 P .. .. Rt ------:217 2 30,087 14.099 Dina, ------I ------.590 211122 87,177 4.44 5 I= 'is a , oth------1 53564 U7 140~960 11,82 o 12 7 .zi as1 G .-I"'. lubricating oil . he ...... FICA credits ------1000 ------0 Tariffs for Surds. .. Shown Add. .1 Ciuad ------1-1210: 9 5 Iab~ California ------7 .183,993 35,224 S" 211:7' .6 3 .410 341 4 :41 TOWS for States not shown abiWa 111-i------3,730065 18.259 ZI 579. 732 281 1 3 1.583 197 2 '55 It) N- York ------5 :57 'NO 33.936 5 .3m .806 156,598 3,97 428 6 .339 3 .955,NO 5N .950 3,ma,591 79,613 12,486 4311 926 d On. 3559.445 17,475 3,4 1:.231 98,952 972 IN 1 707 Ib~- 1211mols-Ii time. ------1 423250 1 .482 JIM 42262 1=3 .61 1 ej 3,822.144 14jB46 3 .694 79 111 .106 1 .34. 1 62 3217 13 .9.'1 .578 92295 A 6092.217,337 61 a.769 1 1131 712'2 12.337 11) T-- as ------3,767,96 7 47.866 3,5112 .303 183,415 002 fill 3.103 IcIIII "e`wOhio York------I .M.246 236A27 261581 30 41 1 32 4,469 0) 03 9a; :7 :~285.992:3 0 15 2 30:~33 2. IT 67 14,497 I Nei of 89.481 undellmebe f,nd checks . 63 30 239JO60 ~ 259 .903 51,775 2 .5962 16 238 5 .428

g1l. .d. thedne for Ine Federal Old Age and Sum-S. Federal Disability . and Federal Hospital Insurance Trust Funds mounting to $360,000,000; for the Highway True aff,Z?urtingu to $145.764 .000 . includesNet of thronsd.li-tol g . luck. touringIt S25,6139,000. pb:yments u , 1 . lirtural Insurance Contributions Act (FICAl of 136D .000,000. Incluies credits :0-~ cecm-ln Srisol :i'. 'I' cahng Oil bur Payments. L- than $500. 13 5 13 4

Table 7.-Number of returns filed, by internal revenue regions, districts, States, and other areas. Table B-Internal revenue collections, costs, employees, and U.S. population, 1946 through 1975 Greek Coal of T. . Number .1 ..old.. .. F .. . I Operating Declare. . .. I oll.chome (The. : NTonal nice..On .1 Field 1.. .1 Year are S. :.;:qw n,& d,1*,1,11C S . States and I.di- C.,,,. Employ (6 ) she, ad ~_ I'so, by single 1 tire701 .1 w .1 ah', Penn- eltil'IdWel Estate oil. E..W. (1) (2) (3) 01 (5) (7) (0) a"icts indicated In par,mh : . .I . I ., M. ; I ...- "Coll ship n , . .: . Is State. hall .1 bet- of Isibl. .) Is. I '."" .*the . 5 59:,Ig5 :640 10 672 .096.9911 OA3 ~41,936 286.5 .693 5.144 54 549 Income I1 94 171. .. '03 16822 'g .108385.742 0.52 A4,695 270,28 52 .830 "77, 4 :049 948 ------183 .731 .060 41 .11U .542,295 044 1 47208 2843 52 1 43 4:662 477.4 1 (1) (2) (3) M (5) (6) (,1 (a) 19) 1949 ...... 209.205,715 40 .461125 .019 0.52 149367 27017 5212IS 4 5 Is 4 .712 1950 ------230.408 .200 38 .957 .131,768 0.59 152.271 255.84 55 .551 4,303 51 148 NonM United States . total ------...... _ 125 .117 .10 183 .9119 .547 3 .031,219 1 .137 .941 10.295.10 24,756,630 215.216 20 .0114 1,430.386 .Atand . R.9i.n ...... la,W4 .020 12 .143,043 695,257 139,959 1,05.759 3.754.177 39.1145 41,321 164,657 195, ------245.869.536 50,445,656.315 049 154.1178 325.71 57,795 4 .030 63.765 1111n1I~ug .. ._- : : : :__. : : ISM*.", (Cj ~1~**1952 I ..a 771 .93AGI ----28,481 8 .581------81,473 216.187 21864 2 .143 15M 7 _ 271S72 .192 659)09,685 .560 0,42 1,57 Sw 412.62 55370 3 JB4 51 .525 no 619.251 401,901 18 .541 3~403 47,012 134,198 I1:,11 1 1 111 1~12 :957 1953 268 .590,806 69 .686 .535 .389 038 60:184 43500 53 63 32. 4 49 .629 SW .n _ ...... IM ..Ch. .H,) ...... 3 .519,528 12 :3747:,Ol 11 :111 1~1:1162 32 ...0 B .,117 11 .292 916 1954 2611.969 107 69 .919,990,791 0 38 1.6~3:02 428:89 51 :.Il 707 48 .704 S 12 :119 .2 03 62 so Sir N 294,453 710.9CO 9.412 5 .968 26 .314 1955 ...... ------278 .8214,278 66 .288,692.000 0:42 931 399.50 50,890 2,675 48,216 .7 1 6963 1 :753 199,423 445,686 6~553 5,699 30,636 288 5315 69.773 55 7 111hnHe .,it an:!CI'C*O',m:?% 17.0 6 S 8:7816 . S2' 565 Mi 25 ------.,IN 1719 51 92 9B94 .710 75JI2 .649 .000, 040I'm 90 4443 .71 50,682 2 583 4 AIDS M"0" "! - --- 2 .209,959 1 495 :495 63 .235 19,030 202:185 401,094 4:588 at I S: '1'51 1959 --- 31 .117 .S14.0 171 .g714000 0 38 4 51,364 2:602 48 .762 Panth,han ------IS.. (C) bar..) ------3,264~950 1 : 23 52 21P .102 33,898 359535 9a3.66S 6783 92 21 :22 337,428.789 79 .171.7 :4.;6 :.41 42 71984174,882 111INIS 3 50.016 2638 .8 .178 I'awRh . 503,180 21334 .129 13,370 2S79 38450 105.010 .977 1 .1 .~ 7...... 958...... 3 5.469,228 79 . 2 W0044 177 W 446.73 WIN 2:633 47 .567 582 .579 12 388,814 19 .872 2,794 W280 115.041 842 4.166 . . . . 363 .735.359 9~ .774 .802.823 040 180671 507.96 60,199 Z702 47,497 lid-, Region, '8295 5, .215.005 -440 .373 139 .18, .1"92101 3.262,700 28.SU 29.550 -170.105 1960 S ."!_""I,...... MIN 2 .154 .148 '49 .103 23Sn 236 .607 544 4 .347 5~12 2SAW 1981 4. ~110:295.236 94,401,086 .398 1 as 1~1:611 51 .91 53 .680 3031 50,649 Nelalk ...... __ 1~_ j.rey) ... 4,649,116 3,105.9!3 1!984i MASS 376.074 88SAOS 9.795 7.736 40.754 1962 080420 99 .440.839,245 5 536 53 09 56.510 3:35 53 .153 "I,=onIn,, 4 :251 .548 2 .945. 9 M13 33,985 389.489 763.937 447 6.394 40.792 1963 Soo,:314.395 .281 1890 .47191 24 2 559 .74 59.486 3.562 55,924 2:1 27;:1131:121.142416 196,413 320 202196s 4272433031 31,973 U79 804 1 105,925. 92.13 IZIBO .257.115 1 58503 59357 55.604 PRichmond IS9 25.767235 1, 380 49,341 20 183,552 562,702 1334 5,654 27778 1965 .6387,471 114,4M,03,721 ~4129 194,889 303 588:95 60 :360 3,'1900 56,570 Won, mor- 362JO55 236 .970 7531 2175695 33294 75266 7w 931 5 :125 59 sooh*- R 11,724.436 354 065 1 1 .23SA76 3.005.052 26,2" 3801 194.279 Atlanta.9" ------J------17 623,651612 1966 624,861,929 128,879 .%1 .342 048 ;96 :816 1.,11717 :7 52:7983 22 :'06'7 156,19111967 625,554 21873 6,432 30.209 667:080.295 148 .374,814 .552 0 .45 11' 14.. . . ".5:'1132 4 062 BilminrIgharn":: 12I .773,818 11,208..'.872 28.853~4 .261 98,357 396,898 1,596 .253721.1 :,1,.1 9396 9 190.3(ki 61~153 .636 .837 .66 5 2".1. 7.1230 3.060 COW, g: ------(SouthCarolina) 1.014.349 26,625 2616 03 .832 3W,M :753 2061 7S8,785,475 187 1 .559,668 0.0 1 202 0'.1771 927.19 64 .507 4,037 60 .470 Glams 11 ------Jkkonh. Cl,ol,n,)'1------2,40923'.,.65 W" 7Z0216.11" 54255 59922 4w 177993 653,643 31 5.435 319.4 1970 886,159.162 195 :9122',096 .497 045 204,878 955 .31 68 .098 4,356 63 .742 n M ...... 1 464 19,D14 9*. 59J85 2611 2.134 1 .692 .1sli, on ------5,2147116.996 3 ~3 .286 137,135 -40.641 615626,519 1 .131 .795 IZm 14,SW 545.1 a6 117 98 065. .297 191 .647,198 .138 05, 207,053- 925.63 68,987 4 64 .466 Naammil JT .mhe. do ) ------:::::: 1:1:17 1 1 .6 054,.965 35.385 24 .069 132.692 49872.05 2.768509 3,933 26.2237 to1 127 390~411 2092 855,7W .878 0.54 464.83 7 :086 .5:82 3 1 69,2636 R. *,1a--n------. . . 7. . .'8668. . . . 56 924 11.030.778 30.624 29 2log4 .308 2.985.555 25,594 23,695 1292 .102 205,846, 1,004 Qnc,nna qt 1973 :1311 11 37 .787 .204,058 .4.9 2~0,410'1 ~,130.11 714 Me 4 6 7 20D So 2 179.35 1,0 ;5 .6 50.884 A76~Sski 281 .593 460 144 4 .638 4 .505 5 1974 694; :Z112"2 661 268,952,253,6631 0, 2 1.269 3.151 78,233 3 .5411 3:584.6432 2 5 3361 851134 22 alto 628 :157 6,179 6,211 40'54 .07WO 1.75 203,622.725 .7n a . 7 W,266 .96850 77 .306 Detroit __~ ------lMich,gal) 4 .850,282 3 .,t48.610 110,057 1 .1~7 ~44 212 1338373 5,526 7,SU .9" 1 .586 .570 .OOD a . 13,6312 .375 Imilmapol ...... (India-) ------2 .945,443 2,072)929 59,409 210.6 8 221 :129 521,M 5,716 5.689 37 - R-W Lo, ille ...... _ (Kem,Ckyi ------: :: 1,7 ,17~1691 ij 06 28.628 17,956 117 .796 35 980 2.436 2.900 2 233'em .:::._IWmt Wginia) . . . . . a .005 6 61'2:310 15,812 7 .921 60,110.574 3~397 17'9.671.an 1 .099 1 .382 12 a This figure represents actual IRS ober,ating costs for FY 1975, e,chisive of renwrilemems re-i ad ho, other, agencies for semwes WIhs,l.d WNIa The operatog cost bg,163 Ior Ifilden. %e __ --- 17 .777.829 11.9793232 426.249 161 .126 1 .410 . me 46,926 2" 10 fecal years onor to 1975 may , some cases indwe rem,wrlements Mole amokens are sulbe-Ity small W as not to alter Me cost fig,res I, colm, 3 Abordeen ...... 401,232 252,015 10 .822 4 .926 29,221 92. 1 64 Chic:p, (SeeMbliow) 4,944 .1,3 3,411I .18 1411:0~21 41,1661 4..784 821368 .n2.6W.:7'2'2 104 931 . .999'Z Des dines Ioll) ~ ----- 1 .74 .405 1. 1425 9,094 161 .241 229 5.985 5 . 71 25,967 111"IDk .l.) 39111 241899 13.349 4 :1~ 21 :1 91 '1 1 ~305 I , M,I . .u W.-n-) ...... 2. 673 572 1,795,M 68.449 209, ~26 676 . 805 5,.7 S .7 a '71462498,102 Omaha ------(Nb-k .) ------got OSS 608.98~ 211.5922 11 .120 78,174 20 aS7 3,186 5..528 g"S S , LoT ------(M .1-0 ------~Mm= 2 .704093 1,794.13. 58.4 21 .770 227,614 551~355 4~31(18 40 .6111 S: P-1 ------(M-dool .) ------2249,666 1,540 678 6018, 20,901 163,190 42, SAM 43'47 32,329 SPY119field .. ... _ ISeelb)"Jol) ---- :.-. 1 .703.075 1.143661 29:557 3S 16,397 1 533",624 M 4 .959 5,106 2 .238 on . . . __ ------15.259.346 10.09. 1 13 ;1. 11 Ill ... Lis" .210 3~312 912111 23 .6055 40 on 2712 .242 ------6N .422 4 974 812 37 .448 52 1 181 .713 AlbuA,stlr'due. lt. M"C-) 3,92 030 2,661 10, 88:361 452,862 259 .805 825-74 4 .842 1 :0 815 5:1 03D Chat-..n. 2464 :400 150:889 6429 305 18,760 .:2'1'1 M 'N 91 1.4,:547 :-:" Is .. 1 079 78 1.961,886 63:665 46 .234 235 .179 715,603 4,500 7 .84 Dan.., Colorado), 1 :517:T 1 030.877 39.192 19,069 118 .386 313 .922 2,536 4 .145 18,11291, Little R 1,077.-2 70,482 2D.636 11.00 71 A65 247,721 1 .298 2 .597 17 '59' N_ 0 ;-kn&-_Is. ::: : 1 887 1,245254 42,497 1 3,348 .11 ~ 1111 .790 2,717 27 . Oklahoma Oty ---- 10ki,hom,) . ------1,493..739 157 97 1.515 1 3.". 78.406.7 294U'595 .2533 3091 1 254,352 ,887SW YkWichn , ------(Kinses) ---- 1 .399,388 1 34.604 7967 .5121 .9113 306,674 3 W-11 9 lm ------20.347093 13.875487 435.309 250,.4 76,.30 3 .910 .367 30.27:925 534 :31122211233970:605 Anchorage _ ...... IN. .ka) 1 93772 133,885 4,161 25,1 7.865 39 .764 182 21 . 5.155 So- lid-ho) ------464393 301 .381 11,178 5 .771 3I .V4 102,400 719 1 286 10" Montana) _ . . --- _ 468:537 29007 1 2001 6S:, 11712 3 :11 108 . 8 1,065 2,364 12.1102 Honolol,, ...... (H:w.ii) ...... 343:740 16:182a 461 70S 91,3' 710 573 1 .510 3A LMhc Ange es ------IS 1.) Ind. .) 7.553504 .1097M 5217,1130I ISO IS 97,433 585,419 1,422,131 . 706 OB44 50.328 I In 209 059 828 .267 24 .720 160,859 198.977 228933 1.878 2.649 12756 P nd S09 ~191 1,025,202 34 .023 '999 13AI 3 290:178 2,428 35 4 23.034 R-Lek~__6 ------(N.Y.d .) ...... 377.687 261,M5 OSW 3 .910 23 .U5 71,765 346 026 634,469 435,229.97,7 IDO14,566 7,422 39,392 125 .570 617 1 . 54 1 .21 9 SV,I "VC.;'C'. 4's.").) ------5,305,805 3 '618 .049 71,460 4321 .880 1 .005,903 8,706 8.081 60.049 Sao"]. (Washtngion)bel-).------2.11 7 96 1 .419, 0 49.473 22.861 65224 424188 3.053 3,565 30 185 offic. of Informed .. . I Ob-tion...... 641 :7126 392.047 4.479 3" 62:727 1 70:"G 663 570 1 :240 Pueno Ric o 251,320 71,464 748 47 11.223 167 .3B6 40 36 '76 Oth...... 390.3% 320.593 3,Ml 297 51,504 12,260 623 534 a64 Totals lot Islas . W showns allo w I a)Cahtor , 121158 :91142 4SJMA07 260,467 168 93 1,0102 2,4271,1 .734 19.412 16.925 1103n III 111imn. . 6.647 a .628,547 141,576 5813 568,49' 14,691 16,D43 60235 IC) kla~ York ------10,11801841 0.972 .5111 463.416 91 :426I W.A'"' 2 .27767ISS 25.612 22915 93.583 1d).) TPOhio.. .", ------6,164~1)25 4:328.967 136,718 41,556 481 .061 :088:301 10,81,7 1 0,756 65849 ;,nia _ . . . GA20,893 4805 .494 92.277 54 .301 585.902 1 1911 000 9.64 9.425 72,765 I) -- as ------7,005205 4A22 .907 132JO26 89.096 494,984 1 .541 .108 9.422 18,356 97 229 In.l.d estimated I . dect-flon. not ..!I .bi. by M.M.W . Fomn. .IOAOX - not imi.ded. .3 For . 4818I menot 700'. . il.bl. 7;g. district taltatWo 1120 L all M. and Fomms 990. 990C. 990P and 99at not milable by districts .M1-i'das.,.des Forms 4W not -ilable by districts

I 13 6 137

-Table 10-Additional tax and penalties recommended after audit examination Table 9-Number of returns examined by class of tax and by by class of tax, and by internal revenue regions, districts and other areas . internal revenue regions, districts, and other area s (in thousands of dollars ) E,ompt Panel Employ. E..Mq l Region . I'llics 111ol, I'd dr-ic l Total ImINW-1 Fiduciary' C,w,,ti,, Estate Gif t E.O .. E .Pl- Region . -W.. an.., . and di .111 .1 Total IWI.id,,l Fid-iOU CoMetal- Eanal. Gift E . ... . - " 02' ". .. 1 .395 2 .932 .941 S56.620 67 .041 105070 197.558 32 .093 .on Total ------2,495 .705 1 .943,256 K757 IMASO 48 .94B 13 .073 95,119 110.933 22.166 63.562 Total ------5.310,628 .222 21 .275 M,~All.efi ...... 43$ .M 349.827 3,470 27,765 9 .216 2 .054 10,989 14.597 4.209 14.715 No"h-Ationlic ------1 .168.400 279.122 3.1154 701,125 103.1116. 7 .940 7. . .ft ...... 325,201 252 .647 1,145 24 .MI 5 .602 1 .566 11 .612 12.n . 3 .303 11 .978 ...... ------8~11 .31 1 3 .265 SQ.75~ 59.046 ~530 31':344". 111" 2 .1'4' .Ah ". .t ...... S.-.- ...... ------.922 272ABA 104.954 10 .097 11 .576 45 .298 274 ...... 345 .7M 276,460 1.213 18,455 ti .515 2 .581 14.543 15.87, 2.7610 5.975 1"2=3174' 1 l ..069 6 .00 ON Can,,., - ...... 242 .119 176.60 1 .025 19.963 5,374 1 .2 . 12.466 11 .361 2.1130 . .193 Contra ------: T1'N 131:IS4 2,31? 397 .630 $1 .494. 276 ,6 .591 ood . .., -...... "7 .Ul 216,273 1 .22S 24.153 8 .675 1 .987 13.445 .305 Ig714 hi ...... - .- - - 63CIrthy'229 1 '32 no 2 .769 301,532 6' .830 11,337 26.450 .72 South .. t ------...... 288 .560 221 ..B1 1 .462 17.139 5 .a2fi 2 .09? 14 .321 "IN5*55 3 3 .053 5.614 S. .h ...1 . . . . ------511 .286 14 .416 2 .833 240 .311 ?S,760 23,4135 10.337 11.479 4 .611 We ., or ...... SD2 .597 423 .308 2.201 21.9911 8 .370 I .W. 17 .274 17.BB3 2A24 7 .373 West., ------...... n .668 4~305 346 .2114 82,169 7 .59 W .-O.e ., ...... 26 .743 22 .21 1 10 an 370 39 503 2.655 B4 ------International Ope,stio------1112' 16 154 9 27 .170 11,934 11 :3, : 0'2 IN= .Is T21 N .-AtI.M11 A.g.- Non~Aftmlc Region : mbamy .. ------20 .691 17,339 '09 793 4~ 7: IN 899 ------Albany - .1------52,710 6,479 to 42 .967 2.029 108 121 A gu .,...... W 1,117 ------A~g .- - ~ ------57 4,793 722 16 79221 : : : : : : : : : : : : : : 10 .293 7B74 61 S" 1,6 B %638 3,674 408 Boston ...... 60,221 43,94a 67 4.119 1 .104 242 2 .212 1 .957 1,046 4,015 ..- ...... 27 44~ 1,12'I . ~a:l 7 140175 1:137.~4 '93 2 :111 ...... Brooklyn ...... ------107,625 92 .792 162 3.621 2,186 364 1,926 3 .115~ ------3 .659 Brooklyn --- . "'W2 .247a" 59 :310 2 894 21 04 317. 2 1 85 .476 37.059 3 10 3 n4 . 1 .715 1 .926 08 16,947 120 52,324 6 .69 511 658 Buffalo ------45 936 30 Buffal------28 106 ...... lu,lin%,*. n M"'28 '305 2874 .330 2 262 65 30 203 3'D : : :- Bu,fington ------862~,732 ,41 1 13 N.M ' .419., to 1457 12:.141 27 I , 568 H-ford :7'13. 368 55,113I'l U4 '514 .3 5 628 48 862~ ...... Manhattan ...... 110 .385 80 :44211 . '68 78 '71, 725 2 .663 Manhattan 113 635 431,594 43,061 2.552 4,842 52 .160 349 Pon . urn ...... 9521 7,696 80 654 212 672 ------P ...... 31, all 2:124872 1'097 39 595 100 PrmAdenc...... aigo 6 .568 . .. . . 4a...... 013...... ".13' . . 7. . . . .1'6 . . .1. . 3 5 273 ~ ------Pro,i once ------to 507 3 .V5'a 773 ...... 64 And-B, S-ic, Center ...... 12914 12 .455 ...... 459 ------A .-Se-Cr- 4 . 1 ------...... : : ...... MXA.UO.k1-n S .MF . Cm 0 .619 10 .600 ...... ------. - BrOokh. ..hSo-Cen- ; ": 1 4,3 ~4 .111 . . . I ...... 2 ...... Mi. Region . Mid-Adantic Region: ,.. .,k ...... 58,233 41 .901 4 3.930 873 342 3 .016 1,723 1,499 4,537 B It-re - ...... 10 581 28 .676 353 46,44126 ~7 .69 B2,455 1 .94D ,2 :04 1 .971 ...... N-k ...... 125 .4 6,0W 52' N 977 7 97507 77299 203 7 .6 1 1 .784 378 2684 3 .819 ------3 .6 9 202 .786 53 .122 636 . 74 Ph,ladelph,a ...... 80 .175 62 .946 171 1,330 285 ZON 2 .129 1 .`a4i 3,762 Ph,ladelphw ...... - . . 2877 1 U .832 539 2281 .9191 13,672 729 6 167 P tstn,,gh ...... 3 018 24,855 164 35744.075 722 315 21 %Isl . . . ------. - : - : 1 62 :7609 15,096 1,220 222 2 4 :761 1~230 17,14672' 2 Richmond ...... 39 .329 31 .472 12' 21 :41 3 730 230 I 1,- ;43 2 1 3 R Chlond ...... 883 211 :12 5 '05 570 w! 'i'glo...... l5a .. 1 339 01 . 330 1,208 20 1o4 1 6 .679 4,136 70 901 163 to 113 . . . . 2 0 ------witIng- ~ ------1028 ...... 29...... Ph%delphia Ser,fic. Cnl.r ...... 10.260 9 .935~ ------325 . ------Ph deiph11Sa-ceCdm,r 1 .507 11,479, ...... so,dlheasp Regiom : Stind""Ist Region: A lent...... 60,663 36 .W 237 2,8M 664 351 2 .524 .885 2,760 3,396 Atlanta ------65486 2 04 160 25.380 6 4799 1 .023 3,16G 3.663 246 !rlmg~ama ...... I . . .. - 32 .026 26,437 123 422 336 im 1 .247 2,325 ------B-i n 31202 155.420 1 .271 ~4, :I3~2 4 : 1 .13'565 aCZM ...... I 22,667 18,690 54 ~ :458, 3 1 76 950 mb ---- ...... I ------10 663 0 33440 "IN1 Greembo 0 ...... 50.853 1 .51 9. 2 734 681 N3 2,881 ;AO1 ------::: : ------Green. o ------W,7M 24:79B ~11 57089 5 644 606 2.273 2. 1 ------J C .On : ...... 21,749 4'7246 95 1 ~366 26 , 135 892 746 ------J ck,on ~ ------32 1 8 1 1 D68 N 5 :047 4 308 9B48 ...... JacAlionville ...... 106,866 65 .914 476 6.407 2,552 1,343 3,273 4:348 ------2,579 Jacio,-, lie ------305 .255 99.573 188 21 .352 3049'956:473 a11'.2 2,799 25.761 .i1i N 424 9 34271 134 2,271 ...... 682. . . . . 19 5 2.010 2 92 ------hluh~,11 ------...... 882 4 a 71 37 .765. . . .090. . 224 1,410 ...... 1,987 Atlanta.,hv rv , 9:426 8,781 ...... 64 5_ _ ------I------Atlanta So,iCs Center . ~ ------1 2 :878 1 12M 29 C=mphisM Sam- Cents...... 8,977 OR96 . . . . ------81 ------Memphis Seic, Canto------11 .176 14,167.. . R.9 n~ Central Rsgpon~ C-irmat , - -- - 36815 24 . 47 159 1:17 719 "1 :~794 1 .056 3. 60 C...mwi ...... 97 .590 15 .420 173 71 .514, 7 5 7392 6 332 1 .266 1 .279 Cl-el,nd 56: 152 39,425. 378 1 3 'M ' 993 2~ Ci..l.nd ...... ------121 :171 20250 2132~2 17 :.11 '793 .343 1 .56o 68 Detroit ------75,745 58 .386 4 4ge1 .652 1,249 Z 4,373 3.578" 781 3290 Detroit ------904 29972 '6~ 6 113.716 446B2 876 8 :' 5 62 36,641 27,974 169 1 066 1,348 185 2.213726 2 1,%,,ha-fi------53 425M 27:1 1 .249 38,573 " 4 .526 2:053 ~ 20D . . LOW .,611. __ ...... 20.20 15.145 DD 1 :934 569 163 1 .2 5 152 17328 430 26 .949 3.:'"7 2 ' 319 1 .265 619 2 P.,J,.r-L _ ...... 10,816 7 .790 BE I~ 383 260 so '82 93 ------14I ~.2" 5938 21 5 .802 1 .809 154 169 364 . . 0-n-li 1~i .. Came ...... 5.682 5,473 ...... ------209 ------Cn-nafi .5 1 ,5,512 ...... - .- - ...... - - 140 ...... idenist Region : 111dowat Region : A .,d se...... B,355 4,4024 25 333 255 23 6 667 ------Aberdeen ...... 5,06, 2 " 23 1,426 ch- WU6 68. to 338 7 , 9" 1 . 9' 356 761 4.274 703 4 .547 M7 .99 0 46,2 s 1 .537 151,07 22.216 2 .316'0 1 .453 6,43 ------DII M1Pmai*g :. :. :. :. :. :. :. :. :. : :. :. :. :. : : ::ww :, 20721 12.439 115 2,400 1,141 300 2,18446 2,17 1 D. 476384 a.745 73.126 20 .727 173 9 a B5~ 7 .8" . . . Fargo ._ ...... 6:854 4,159 9 323 U, 74 Fargo ---- ~738 , 2. :.123 2 1 051 N29 6 42 274 Mil-kad ...... 36114 28,754 102 3~393 912 228 1 ~634 ...... ------48,475 U 58 21:874 6, 6`1 851 461 3 68A ...... 0-4 ...... 15126 10,142 134 .BIB Boo 275 ; :3,921 1 :55 ------: ------01 he ------32,920 8 .504 67 is .1 66 4.517 342 4. 879 L W...... - 48.222 30,763 1172 1 5 745 ~ .314 370 2.~ 2 "1 l'(04 3,579 KLO 1. ------79.951 1 7111" 433. 11:~11 12 No 711 7.257 2 .3DO 221 'S ~: PW ...... U,420 23046 30 B04 .0 9 2M 912 2.340 1 .516 2 .588 S Pow ------120.511 4 : . 93 17 5 62 6 7621 2 :179 2.812 4C 116 7335 ...... 41 29,795 5:37'08'. . . .3M. . 1 34...... 2. 333 : : : : : : :: :::: :: 22,355 16 .842 wo 1 ~368 039 149 ; .223 1 .734 ------Springfield ------.. . city 1 8,368 16.516 ------.852 ------K,nswC,tyS-wC,nI,r 15,37 5 1 5 :235 .. . . - .. .. -...... 40 S.,allowest Flogjan: so 738, 13 7.236 30 429 93 22 218 585------Alb,q,,rq,, . ------6.146 2 .680 N J15 ------9 66 29- 55,992 414 4 .848 1,442 514 2 .374 3,283 . . . . ------1,494 __2 .933 A.aun ...... --- : : : : : : : . 148.808 29 .714 33.1 :7 2388 1294,239 824 79 Choy- ...... 3 ~271 2.412 27 231 91 22 286 202 Cheyenne --- . ------::~ ...... 2.358 571 .5 4 8 0.11...... 1 ...... 65 367 46.632 483 31 .469 1,196 756 3711 4 :3 1 1,559 2,681 Do I as ...... ------121,113 31' .M.848 12.089 55 .144 21 .387 1 .784 2 .26656 63 3 ------. '() Dan...... 24.931 19.356 4. . WS 537 1 36 :384 1113 : ------: : : ------: : ----- D- r ------29.755 8.996 389 10 .610 724 328 1,022 1,15741 3 Little. Rock ...... 17 14 '25 '29 ~ :3' 553 dj~ --- Little Rock ...... ------25758 8.207 95 11 290 2 :174 2.640 926 No 0,1-...... - :538 1 14 92~ 256517 2"65 I 267 2,809 ------Nmo 0,1dam, ------55*64 13123 314 29:384 6401 1,689 3,959 786. 5 1 ?1 Oklahoma City ...... '74023,72 W12018,289 29 1 .903 703 1 73 ., as 1 ~2------Oklah-Oty 48190 9.129 32 27 A 90 a , 77, 783 1 242 1') ...... - 24 . 617 17,701 168. . .1,592...... 646. . . . .14. 5 2241 0 ------W, hito ------584675 221 .408 372 17 .OD6 ...... 4,248 11 .766 41641 . . .. 2,231 : : :. :: ::: :: : :: Austmh its S-i.. Center ...... 9,749 8.722 ...... 027 A-1 n Se-, Cents ------. . . 15 :02 4.983 ------...... We-. Region : yeselson Region : 22 65 ...... i5os 5:935 11 245 15 ...... - 155 147 ------A-0,age ------413 1 .894 11 2,079 53 ...... A'cho"goGO ------29 3 2 25 "4 '62 287 2 I708 6 U 24 360 167 113 a ------...... ------113 147" ------11,222 9Z 4 666 1 64 4 '20419 46129 ------He,.. 4,804 1 a 3~O 6 910 51 Hon.ww 986 1325.352 28 5,815 1,124 55 5~43 7,971 43 9 .6 2 111 51 270 419 ------~onomu 12' :I' I...... fi- Lo Ang .,;;"* : : : :_-: : : : : : : : : : : : : : : : :, 21 W7 186.704 902 878 3,601 612101 3,774 5 .665 1257 3.434 Los An ------36"48a .829 1 .247 163,033 39. 00 1,499 5 .1 52 s . . ;io Phoan...... 25.2U 22.177 145 06 425 432 " I ------Phoen,r, ------20 .330 9 SO 6 112 2 794 237 362 W 75. 11 . 3 :673 122 564 Portland. . -...... 22,7N 17,589 1 08 i :289 529 W 1 158 1 93 ------PoMand ---- ...... 25,498 R-0 . . . . 12,790 IOBW 12 584 1 56 79 541 560 ----- Ran ...... 50 .911 11 48 34 196 2 27 766 846 049 11 1k'r. .*.CC% ,~21 ~ 4 685 575 :- : : 25,452 13~41'4U 53 10 :01 704 1 506 13 458 SanI .2"40W 249" 04 1 26'Z3 .6 1 4 .406 3,949 025 2.289 as"So . 1~.`nc-'...... 144 .566 61 :36 .1 1,782 55 .509 17,403 41 "355 5, 010------1.7 ~8; S..M . 40:11 30473 188 2.105.335 750 "1 1087 2,997 542 1 .650 S-1 ------63, 963 1307 883...... 84A ...... 12.1560 4,277 1 .172 962 is S"WG;wt; ; Ili10 729 14.393...... ~,3W ...... ------Ogden Samoa Conte, 482 ~3.432 ----- ...... 29...... Md .% S-i .. Cant ...... 742 8B5 ------.:~ :---:: A91 ------Flean. S-i .. Center ------...... 17 JD62 6,681 ------38, ...... - Laos then SWO . 13 8 139

Table I 1-Appellate Division receipts and dispositions of cases not before the Tax Court (nonclocketed cases ) Table 13-Appellate Division processing of all cases for 1974-1975 A . Progress of work F.Y . 197 5 (income . estate . gift. excise . employment, and offers-in-compromise ) Anei stated,, 11101., ling-Vis report al .irmins, .1 C .. . 4111, lot (tho-rd cost. .. St.t .. Deficiency 1014 1975 anid penalty man, Pan :,g J .1y.1 ...... 34 .768 36,139 (1) (2) Recd W ~ 30.066 29635 Pending J.1, I ...... ------22.551 1.068.121 199,396 Recen,ed ...... ------18,629 IAW.300 6s .326 Disposed 1. total ------29.72 2 U.02 7 By agreement ------...... ------...... 22,300 22.506 Ont"..ol of . .,.I ...... I .A92 1 .5 51~290 12718 Uragrsad~ O~ ...sarsern-M claims. 0-11 . employment . - or-m-comp-nn, rejections) ...... 979 8 taxpayor detault on stal,tory notice or dismissal by Tax. Co M ------...... ! :'.'0'3 1 By agleam ni ...... 16 .080 1,155,305 70.501 By mtyl,,n to the To . court - - - - ...... -- 2S 9 2:81".682 Unagead : 10mmsmosments . claims, -cisa . employment . and offe- citmic-isene,ii,clion.) . . l'W 42, 71 1 .527 T,i .d,n In . T . . Colurt ...... - - * ...... 99 7 96 7 By taoicayer default on Statutory notice ...... : ------7519 47,160 0 By Nt'no, to the Tax C'-tMm,femaJ to clioaacw ziit~s+ ...... 2 ~682 314 .95s 0 Pending J .n. 30 ...... 35.11 2 U .94 7 Pending Jlm . 30 ...... 191 .604 B . Results obtained in dispositions Aposi call mnintiflis. Table 14-District conference activit y F. Y . 197 5 Nerri.. . or (tho. . .not aelan.) Field Off"' Metho d 0 ...... A.dit Alidi n To, ., W penalty n (2) ) l C.. .. pending J.'y I 2.607 (4) (3 Co... nr_-d ~ 16821 1 ':"7 Disposed of. total ...... __...... 21.492 851 .52a 91 Cnl..n- c ..,I.l w 17269 26. T7.121 43~13'90 Ninnoe, agreed 11 .11 ; 21,028 VANa By agreement ...... I ...... ------...... 16,080 472 .966 V .477 CasesAgreet as a W,Cent of total 66, 'so 74 Una,Qreed : tO-assessments . claims excise, errictoymont . - Old- compromise rejection,) 1,979 41,087 3 .412 pending J.. . 30 11.2 4 .97 5 IS.22 1 By13Y r da'ault on statutory notice ...... 751 43 .OM 0 Pat'no to . . To. C-1-ranst. ..W to docketed Stall, is _ - - ...... 2682 294 .462 0

Table 12-Appellate Division receipt and disposition of income. estate and Table 15-Overassessments of tax exclusive of claims for refund A=r gift tax cases petitioned to the Tax Court (docketed cases ) R ended N..b., (Ireu197...4 d.d.11 .,.) A . Progress of work F .Y. 1975 1974 197 5 1975 .. ..m litillindn, 7 .1.1 103,473 122 .399 SM .454 $302.7% 14,11as *1 (Ins,. . ..d nd,~,dinll and . 73 .5 7 97 .5116 $2.015 71,91, status ,,,,,n F,d .cltiry . . 16 .677 11,46~ 266.706 165 .823 Diri.xii Olit-seens- 5,892 5 .9W 30.5811 34.406 and penalty Gill 665 2,723 1 .694 (1) (2 ) 1* 1 E.c...... 4612 09 4,145 9.857 6 .708 E 1., ..nl ...... 2 .637 P nd J 1,1 ------...... 12,588 2.00T.295 1 1,60 9 2,24-18 R: l,.d,ucnl, ...... 11,206 667,760 mse applicable Exempt Ong-at,ons ...... 08 - 962 Patti . . filed in -pon. . - District Directors* Statutory notices ...... 6.729 369 .153 Exempt organizations -ti-y tmnst,,rW 1, new office or employ,, plans and .. .mpl ongim-lons in December 1974 App,11,1, D.-lon4 tst,-V mll-s I ...... 2.477 297 .997 disposed .1 . total ...... 8.535 56S .766 By .11P .latedl ingninsi 6. 26 3n,753 not slogincoble By d 16 MOS U I by Ihe Tt~ ci; U, W eye r 'd' .' 1* a It ...... ~16429 7 "312855 T"W before In' Tax unt on the m-ta ...... 158 Pending Jum, 30 ...... ------15.250 2.ioa,27 9 IDIfertincetronntatNe ll,tmfter,edlodocketWWatus,$W~bye,clW,ngdm,,ctd,,wtors'sWi~oymt,c~wnvdeWbyApMliale .nga~daymmus

B . Results obtained in dispositions

Number of (th.-W dollar.) Mathold Cos " oish'itinicy 0--ase . and to... Ity imm, (It (2) Dilis-cl Of . total ...... ------8.5:15 n5 .272 By S!Mullnedl agreement ...... ------...... ------6,426 112,282 not applicabl, ,,81.ad d by In* Is, court 11 111-yll dIIIII 1 .142 11 .45 5 Wrote the T.. OuM on me I...... ------957 174.535 Represents imb-til beliti .redl 14 1 140

ax

Table 16~Workflovv In the Internal Revenue Service and the courts, fiscal years 1974 and 1975 Table 17.-Amounts of revenue involved at each level of the tax system . fiscal years 1974 and 197 5 delta,.) 1974 1915 191 . 197 5 121 914073RETURNS 125~1 To . roh.m . tried . tota l 17.100 .I . . their I...... 83 .028 .941 85,518719 1 .981 .380 ------...... - - 26C142 S2 293.023 Corporation income ...... 2 .132,647 ...... ------.90st 156,399 E"WormdgM ...... 464 .193 476012 Withholding --- ...... ------...... 2~11. I Z2 103 Employment _ ...... -1- - . . . 241 . K221 24 .756,630 Olh------...... 13 ' 1127. 34:296 E can ...... W,220 1,430386 C.,parst- hp.m. I. the . . .. 41 4 4 5~ 747 Other hhicin;, - - ...... 1030,118 10 .802.506 Estate and gift taxes ------. Employment taxes ------...... ------...... ------625 :to.94 1 AV"'4 1 fineeme. Estates aW GIft Tawas Excel. ..as ------...... ------...... : : : .1 . . ., ...... 17,110 16846 Number ofh drnshelp-mmeal ------by Aorst ------D,,,sio, ------?,960,375 2,171 .923 Return, - is jualmems -eased by Aud,t D,,,,------1,422.190 1,667,~92 Income. Estate. I'd Gill Tax,, DhMOwd ol by Audi[ 0-o, CMI C .. .. Agreed 0 -or dettrufte------d - . ------1378.092 1 .625.147 and penaultres dapesed of in audit dwinons by agreement . payment or detour ------2,253 2.57 0m., - ad to Appellate ------32.6W 2812413 Addhonal tax 3~ 11 .498 Add(onal tax and Penalties dsposed of exempt organ,atten d-on ------:,.-. . . .---: ------Numbe, ol r;ton-- .------xiinx ned b-y'Ex 0--"1 -0. .g,n,o,,t,o,. . . . . D,x,s------.o, ------. . - .487 Adonionatta, and penalties disposed Of OMPlay- Plans d-hl------.------20 22,16872' Additional to, and pernaftnis in cases diseased of inx aPpellaus chvioms by agreement . Payment or ddaul ------500 .y, Ompt ~- .Vpn()-O ------4,731 6247 in . ------123a "I11 4 N .rhmaexamMWbyEmb1oydaP1,hS'"ar's Popowd -on --- ...... ------Is, and Peroxes determined by settleCZ m TO Coup ...... ------...... 37,671 65 .562 To, aC~smpenahes determined by To. w decisions Returns win adiushnents proposed by Employee Plans D.,.------4 .599 6225 ------...... ------...... 2210 I2 ~ Ch," CASES To. Decand lawspetolues on me"Mdelarmnd in cases decided by the Soph,me Cwh and Coons at Appeds ------6 Total a. - in -1- n is5. 69 15 .6al Amount in eiricate eut net ratunded to taxpayers as a -11 of final achon en rehma suits ------77 75 CoushDoppead d.V by aPpreltin. dinaxam, Agreed. daral a enthused ...... 800 15 .924 ongeol , jumulonen : Us c.u": Fraud Co .. Total P.11hamnd 1 . To. Court ...... 6.799 11 .206 Deficiencies and penalties in case, doposod of I, inalligame, di Dismissed ...... Prosecution recommended ------...... 3749 2 1 .143 PrMsecotion not -ninted and cause declined by Department of Just ...... Saffifintl by ithpulint- ...... 6.1939" 6 .436 357 Settledby To, C-helecupon 1 .100 96 d" . . Decided by To, Court, but topolould ...... 257 265 Additional tax proposed by employee piano ch-ion are mcludenJ , Me acdoonal I& P,Oposali by audit and ioernol organization . DoW I cMum, and Count It Claim .: Zkocts amount detenhMed in all Tax Count decisions, xhicludng these subsequenty appeale d TO I filed in district coun, and Court If Claims ...... ------1 .133 1 .018 gain d in district courts and Court of CoMrs 606 CO .D-dee by dilitnill colns and Coun of Cu-s 552471 414 in P-.,. : Sellus of appalls decolo...... ------...... ------FairoF=Yc'-"riyorao, 1,' Go-mmint ...... 363260 35e250 .01 . 1 . 1 pator ...... : - . : : . :-, - . :*, . - : ------96 52 Table 18-Datermination letters Issued on employee benefit plans, fiscal year 1975 . - :-,*,* - . . . .- - - - .------17 !ix` Ph.fil' .1ohng and P SupremeD.,UdbYcw"$WaPPIallblt"Moidif Co 11 ------.~Wb,Supre~9C,u,t - -- - 4 Ito. Total : Settled by Sonn- Court Inch;- ...... ,. - - -*" : :- :*" - - : : :- * : :~* .- -,~ - - - - . : :- 4 ithock be . .. .an. linmitty. .in. planor . Fraud C ... Deterhunst, n letters issued .,in respect to- RICII-d 11, im, litigation in intelligence ch-l-ii ...... ------. . . 8 .078 11 .26 I Initial It ahl-hon : DisposedP'.wCp Of by intelligence ol,xilt a Plane app-ind . . . -- ...... 2Z038 25.560 47.606 P'. .,u: :Oln recommendno . 2 . '14 2,760 I. Plans emapp-d 139 205 34 4 . I-rhm no ------4 .761 5.971 , N-ba, of p-hlipaung employees in plan, so ...... 254 .7hl 1 001 " 1,256,6175 2 .Am errmnah------...... ------...... - 2 :3 Z1121) .955 Disposed! of by 0(h of Chef Caunwl : 1 8 1,2 PrOsocul- not oriented . millu-9 cases d,cl- by In' Done, min't Of Just"' ...... 272 mi 34 . Inxernan hit ...... 12.3 17.~ 1 7 PrOse-hOng ------_ ------1 .423 1397 1. M7 7 94 Ce,,: olow ath-I Issuance of d9bonameto m aloo, di .,,awI. . ------~ - - . - . ------2 .42li 3.753 6.208 14 2 14 3

Table 19-1974 Individual tax rebate s as provided for in the 1975 Tax Reduction Act Table 20 .-Tax withheld from payments to foreign persons of treaty and nontreaty countries-calendar year 1973 (Amounts in thousands of dollars ) (Thousand dollars) Ties from N.".1 of APPLICATION OF REBATE CREDITS T Internal mimall Applied Total ime ...... 11910.1 . district,.by... .State,. ,.a' Ind TOTAL REBATE to 1974 Applied to othe r .0h.ed o r document . -In-' -1.. . (St.. .. .or... . led .. . . it. .. CREDITS REFUNDED I Been.. Due a.,...... Other r by ..all. US filed by III is indicated in P .mMh .. .. : . In., withholding withheld St. .. hb.n .1 batto. a, . .be withholding withholding .) Number Ancum, . ..a ., A . .. I Number A-um .9trefir .O.M. age .. Numberif Amount) m. .Mo ., 1 A-.)" is, (6) (7) (A) M j,o ~ Treaty Countries : Aisle Its ------_------3 .596 am 922 3~7115 .989 8 .209,504 0,775.926 7 .955.530 2 .933,97S 197.435 357 .203 24 .966 177 .47S 31 .570 A ust ------_----- 2 .473 311 - 31 1 4530 N-In-Ate"mUd.h.5"'Region " 'at. .If. .------...... ------...... 65,4689,605.659 1 .226.627 9,438,71 2 1 .189.603 402,252 27,126 59 .1117 4 .272 35 .669 S .Su 32 .885 SAX 541 1,565 9.135 Allen...... ------~SM, c) polow) ...... 547,330 69,290 536.005 67.639 20.985 1,320 2,649 192 264 139 ------. Maine) ...... 306.061 36224 298 .732 35,175 12.613 851 1,476 N 503 104 0/s Territorms ------26 4 4 30,30294 Boston imu Cn .ft.) 1 .11.11 11~121 1,852.63 2 234,1" 73,304 5.1115 9,107 663 4.536 830 Camed ------_------...... ---_------320,351 27.393 2.9;, 203,1152 Brooklyn S=jc~ below' 151,567 273.1114 2,089,882 263,934 97,735 6.426 16,310 1.200 11,3113 1 .625 Denmark ------__ ----- ...... 2 .802 195 1 IN 1,25 B.fl ------...... 1 .467 .592 ISSZ17 1 .440.602 184,250 47,373 3.071 B.273 411 2.456 556 Finland! ------__ ------W3 33 - 33 373 BHartford.,I,ngl.10 .------. 'S---'cJn~V s `1)"1_)...... '------_ 1~ .146 16096 131 .268 15,667 sAa7 330 717 44 290 55 France -.-.------...... 107 .513 91890 55 9 .748 13 .422 Connecticut) ...... 1,210,251 155.726 1 .179.477 151,069 50,696 3,495 6.576 471 4,621 671 Federal Republic of Germany _ ._ _ 56.577 5.213 - 5 .213 55S49 1,109.901 176498 1,359.1as 169.127 73,370 5D20 13,410 1 .000 10,617 1,350 G mace ------1,623 322 - 322 2689 Portsmouth ~N-H,hamm) . . . . . 259~346 32251 253.603 31 As 91344 676 1 , 155 SO 492 109 Ireland ------_------4JD38 494 2 49$ 3,710 PI-d-c . Rhod. UU.) ------...... fe,_ 6733 02119 a 296,5673 W.973 10.925 752 1 .312 89 507 1 06 Waste 2 114 - 2,114 10.234 adid-All-tic Region ...... :6, o 1~2~14:' 604 4M.855 1.197 .127 407.1178 211 .3aS SMSS 3,762 25.911 4.710 = . ------I ------I ------61,754 fe's5a, 112~ Bulumon, __ ----- JM-Iand and D .C.) ---- 1,63a,070 213260 1 .625893 2W004 81 .379 5,981 11,051 775 9,987 1,500 Lu-nifflackung _------16076 3,796 3i$ 45.11 . 58 3 Newark _ ...... (Nd,j,mdy) __ ---- _ 2.522,617 325:396 2.455.448 315,446 103,841 7.336 15,00 1.201 8.743 1,116 See heriands . ------234 :922 27 212 12 .994 121 .320W Ph phis ...... (See(rebelow" 2352,144 300,935 2.2911 .180 292,729 93603 6.2. 11 .242 776 1,996 586 Shithernmos ni ------167 .765 3:661 2 3 .663 Z P,t=gh ~IVm"Ill n".1*1!~, 1 .411.1 1,9 ~1 S1 12 1 .172 176.168 49,570 3,327 5.155 339 1 .968 5Z18 New Zealand ------Sol 123 1 23 Ftich,ond I IMP, 487..0811 g" 111:7137 7 .01 4172 11~33 s . 1 . 584 2A26 3321 332 3.3059 W,I.,ngt.h ...... (Delaware) ------186,879 24.005 '81 .382 23 a 865 626 1:3 89 559 108 =n--- 3 1 1 164 7- Southeast "of . . . . ------9.010 .075 1,076.003 IL734.044 1 .03GAIM 476.554 32.273 67 567 4.615 28 a 66 4,297 Semath, 12 .257 7464 '4746 Atlanta ------' -- .G. ....gm) ...... :_ 1~391 .3()al 168,164 1,350,598 162 .075 68,666 4 .818 9,758 664 4 :326 BD6 ------494 .7 7 43,679 43 .567 07 .246 27.3.4 5 Brrm,,ghalb in ...... fAmbanuf ------924.829 110.564 900.992 10 .025 42,949 2.7% 5,727 367 2.608 397 TnnkUd1 & Tab. ------22 36 262 Columbia ...... jS-m C.,ohn.) ------781 .UB 92,770 760,046 89,567 35,999 2,4M 6,176 414 1 .939 295 of Sougo ----- 1-9 21844 - 204 34 5 Greensboro ...... I North Carolina) --- __ 1,581,645 188,014 1,536,945 161,356 79.439 5 .190 13,263 829 3,9" 638 RepublicUnd :d in All A ------417a1 136.547 s334 38 .8815 1 1o:094 I .'S "on M 518,674 59,655 501,674 57 .146 31,092 1,966 4 .941 320 1 .509 223 Formar L17day . i~siriu;Ism---- : : .002 Jacksomirli,C - : -:, : jF1'o,,ZpP -~...... 2,534,570 305,841 2.443.128 294221 153 .559 10.569 111,8:16 1 .4~35 112:117 1,61 Nontraid'y countries ------443,813 69 .48553 619202.029:730 N.-Il ------(T-mosse.) ...... 7 11~05., .6 1140S .6 1 .~7407 .508 64,850 4 .440 8,866 585 983 .622 TOTAL ------2.408,01 227.789 48,036 275 .025 356 Caner I Rtgio ------__. . : :_ .' :32 '. :4H1 fea7'1 all ~129 . 08 .562 329 .818 22 .185 36 .914 2,598 17 .227 3 540 Cincinnati _ ...... (Sim(d) below) 1 . 68 .822 184 .523 1,434 .170 179,616 55..' 3AIo 5,977 418 4 .089 680 I At printing, only total ambunt of Us interested is avallski breakdown between tak withheld by domestic withholding agents and tali from foreign goinommentie at Cl,,,Iand ...... (Sea (d) belowl 2D60 .121 217 117.2 2018,732 2 261 .037 69,212 4 ..615 7,495 536 4 .52 879 withholding &games is estimated from F&II espenince . Detroit P . . . . . : : : : : : ~M,,Mgim) ------2.783 .273 365 :4 :729.363 357386 92~303 6 344 10 .602 768 3,5 5 964 1111ma. ... ,...... Indt,11,1',_ 1~191 . 311 211,437 1 .10 .1al 208,504 58201 3 6' 6,798 491 26551 31577 L-i . as '058 108,262 111 .777 105,204 . W .073 2 .4. 4 .357 275 IS all ParkersburgI F , ------jWamI Vi,g,niI) ------479 .786 60,064 47, .71 '. 121 d=imagmA . ~ ...... --- 9,457921 1 .209 .730 9 .250 .044 ' ."5'. :a743' 123113. 2. 762 11=69 2 .1'10.1 Moll 3 .763 WhOakome 182 .408 4 20,719 11,2,16 M 44 283 69 Table 21 .-Internal revenue refunds, including interest, fiscal years 1974 and 1975 (excluding rebates) Chic:?o (b) .11~ :11 3271,37111 ' ""2 .IZI.M as 1036S4113 123,457 8 635 1 :8 1,43 0.1 om . below) 2 .7 11 8,117 1 7113 .4 0 6,711 44 .146 2,616. 363 13 3 ..MB 916 1132201 8 89911 3137 (For refunds by region and district, see tables 5 and 6) Fang . . . North Dkikoftj ------1 .3,1~O 224 20 .92.1 13 .237 762 1 .009 53 477 8, Milwaukee jW-.hNn) I .:C1 . 07 180291al.114 1~379a .146 IMIS7 53,618 3 .3W 5,D94 348 1,460 402 Anni ml.mUrl amount of OmanL . .. .. (Nebraska) 1 11174 :~14111" 36 :16611 1 5633 24785 1,476 2,U7 116 966 186 Nihism, (PIb.h,.f aid intan.. .. ~wf .a$ Included ------1,3S2:2'0 69:4316 59,116 3 .787 6,822 455 3 .019 525 thousand dollars) Ihb ... M drulf,m ) S,: ------71 .17g%-44 147 .5496 1,155,65 1 143773 51,193 3,06 4,238 2T6 1 . 26 422 S Springfield ...... (See to) below) ---: 42. .12 2551 196S 245 .748 328 1974 1976 1974 1975 1974 1975 . .'emerm, Region -_------_ .----- :_I ' ';.' `~"'5 .281 1311, g121 9 :2"'12 .1124 IN911al 30 .379 M.287 43,432 2 .946 19A02 3 ."o A bi,q .,ndlm __ (NSw km .ic.) .S`U293 .W 34 :% 281~311 33ASS 12 .70 8 94 747 130 Total hitunds of internal nawinue 1 2 ------_------65.788 .713 67,834 .472 28,192,634 32208 .671 220,921 2 034 Austin't ...... jSeejQbeldw), 1,991 .695 2.3 N 23e,445 1! .45 of 1127 S corporation mic'me, hosell ------_------310,836 359.238 3~282 .094 5.290,433 157 .304 164 Safe 965911 6,8186 . .W3 1 . 00 imbiddual income and employment tun, total I ------. .. . 65.376,148 67.356.316 569 .1 91 26,532,559 55,267 59 .021 Cheyenne . ------jVy,,h,t . . __ ------114,745 14,592 111. ~90"2 14 608 30 662 44 ~ 32 61 2 D 11. - - 1 .49S,146 184 .207 1 .451,24 176.:101 6 642 .87 7 1 3 E.-Sains propsymuniFily.7a,. 1. i - _------63253 .803 64 .953,020 2324 :423,091 25.444,032 27 .047 28 .963 Dan— !=do)"* ------7% .920 99 294 775,4751 .I14 '3a :3, s7of 95592466 'Z3,867 268 2.592 364 OM .r incohn, Us and Imuth Li fe :41 60 :3,56 1. :3028 11157.804 30,533 1 .932 3,501 224 1,220 196 Coreldbutione Ad takned 3 ------1 .970.456 2,212,418 1 .119,7 0 1 .053,25' 27,634 30220 N -OiR..n.--:- .::ck: 94 111 .61 1 is 10 924 89 .40 46,140 3.061 5.578 376 ~ .813 374 Amillostal Isfilemen, ------434 726 5~2 332 15 is Oklah ., City jOkIah,-) ------728,21 8 87 .02 708,880 Metal W390 2,511 4,020 255 491 285 EachI.M. U~phsy. mant in- his ------151 .453 220:152 25A79 U .939 571 73 ------Kansas) ...... 1, :97 . .6743 .779 W,224 36,392 2.268 3,254 220 22747 26366 084 .769 79~3545 6, 353 7 .154' Western Region ...... :~"1 IDIS1:' 757 1 .32 3658 49.160 1 .283.332 492.452 33,869 MASS 3.051 ~D 5411 :' 2 Gin ties 3196 7.DM 'age 437 751 AnchorageSam...... (Alaska) --- ...... 103.742 13600 99.966 13,037 5 .4. 416 519 S3 638 IDS Eit .m. Issual total ------67768 55,519 .. :'525, 300,820 1 .560 3,322 :::: _: 11*11 ------227.599 27:267 220,314 26,146 14,375 916 I'W5 81 W5 124 Alicante ISee, Is ------12.41 14,090 11 112.534 11 1 ""In'Honolulu . . . . 213.462 21.879 207.144 24S91 13,131 793 1,366 83 707 112 Taturcc- - M, ------.0 323 3:2,77 3,485 ? . 'if 70 9031 1264.82 3 31,111 1112: 8 hAinufacturent and retailers ucum Uses . ideal 3,601 3.951 1295315 157.4 9 447 1 .716 Los M g.1. j1,w,a1b,f .w) 3 2. 78.47509 34490463: 306bo '74,7,7 S5 .go 11,511642 22,024" 63 1,7D4 'M 12M 132,490 Gasoline eased an farIII...... 1 05 1. 09: 96 28,0 7 Phoarb . Intone) ...... 628.287 76,955 611 .069 74 .437 28.747 1,970 2S50 20 2 D66 346 Guril ;W, nolhighermy ------:: :_- : ------_- ...... 1 . 1 87, -a SW Portland ------(Ordemn) ------7W.649 97338 760.933 93.9511 39,406 2,663 3.928 272 2.60 445 Other------2 . 2 .1 079 26 :303 ',1227 5 447 Ron ...... _ lNeweda) 2W,785 25:798 200.822 24.927 6.322 603 ~ .IIW 117 82,5 151 All colue, act. US. I ------al .212" 37.135 25.630 27.313 099 ~ :ey?e Salt F,Lake city ...... jUlah) 327.557 395743 320.038 38.451 13,787 871 .489 96 9. 54 'n 11,m) 2 .1 .131 1 .1 . 2,11 .,883 ~0771 139,051 9,851 14 .046 9W 6 .537 1 .56a 2F .uCX innc9lud75! CM TFaderFalc enOld-Age Sit Suhmi Federal Disable. and Federal Hospital Insurance Trust Funds amounting to $535.208.000 in 1974 1115,550 1435.279 1,086.567 138'1767 54 .5115 3 .630 4,4059 293 2,47172 S89 SN n', 16 undeek,shisomto UHl*,h waythe blet . ..p.magh, $123,178,ODO In 1974 $14 .764,000 in 1975, 011'S.. .1 InUmmlientel Do. ..lerm"T") "13:171 1 .916 83 .Ml 826 1 .am Sa 25 W IS had, of checks totaling S20,8$6, in 1974 and 89 401 undidintrabl. Imack. totaling $25 .509,000m 1975 . P... . c ------900 .118 11 .819 11 07 61 40 46 3 11 2 :uud otherwis. e Olh------_------71 .977 7,798 71,532 7.11IS to, "S 508 879 ED 61 16 :nm, d CA Credit . Ilickedd". rawbaCkle and SUMP redirmpti .th. "I"Mrs, 1 :151.1 ,17S 843.611 6~177,4843 . 815,528 304 .941 2 :3 :11 2771:2 ,1 10~1 :I . 4 :01 7:.10ramemn. ne e Ilelfway purposes . to, Illinois - 7711 496,453 684 402.3W 166,239 0146 36 17884 ,637 3 1 7. I-cose and stamps), -11.1 litack . and off ., u- I . refunds. to)Iaw 1*11 1 .1 41 707.289 a6.426,433163 684,950 7W 239 .463115,83 38 .842 2,833 24 1 .670~559 I.S . than Si I Ohl . - 3528.943 .640 3. - 52,902 . "S 7W 124JB53 .425 13 .473 954 11 .616 .)) 3,752.5M 1824" .107 3,671 D64 469,697 143,173 1 .57 1 16 1 1~1 1 3 - To. . - ...... 3 .490.841 427,296 3.384,277 411 .276 182,899 12 .837 211,50 1,4659 . :270 1, 171244 Number of application, u-skest number of credits because on, credit My ha2ft9 a dust application, i.e ., partially Mfunded and partially appined to 1974 Balance Cut . ",Th. Robust . Credits mt.mdacl include 216,795 refunds amounting to S21 .417,2 9~0 scheduled in the last weak of Jun, 1975 and issued in Me time weak of July 1975. Dah. .MM_- lefund Cu ,==National Computer., is, Center and schiscaluesell fair isdamance, by Regional D"~n, Consent . u, innoo A I .-P So remplubonottupe r'sac .. he pillI The Farmmobsom. 'a,and amoums the in cV,mn"S ~ and'P` to,"InVOlY,- in al International aeratilems and the Philadelphia District are based a, an allocation of the total to, those two ces. me Office of International Operations0 am pnoodepead by the Philadelphia Sii Center.

j 144 145

Table 22-Obligations incurred by the Internal Revenue Service by appropriation and activity (in thousands of dollars) Table 24-Costs incurred by the Internal Revenue Service (in thousands of dollars) . Par. n,WI Tota l C-p. ... no . Othe r APcesoli.fica, by AMI.Ity and 0. .. In . Penitential Internal -inu, office cli,tact . 0, regio n Total Cornball. Invest Equip-. am ., 1974 1275 1974 197s 1974 1915 -Wn (21 (3) (4) (6 ) Total.ad 'tav was . appru .pribion s .14-bi ...... 1 .312.895 1 .589,125 1 .069,276 1 .215 .~O 243,619 373,585 A . National Office and regional WWN (including restrict direct,,', offices ants as,nic, Obligations against appropriation Wads . . . _ ...... 1 .303,528 1,584,711 1,061,397 1,211.923 242,131 372,788 'enterTotal" internal R ... .us S-I. . I ------1 .5n .126 1 .215 .541 44.708 27.041 301 .837 S-1.r`a M ..p.r- National Office ------297 .131 95 .620 2.213 6,789 2D2 .609 Total ...... 36,452 41,fiW 31 .036 35,533 5,416 6 .074 N .nn-AtWrac ---- ...... ------235A92 21D.438 5.209 2 .749 17 .095 Mid-A antic ------162 .654 145 .338 4.095 2 .172 11 .049 Executive direction ...... 15,688 132 1 15,478 2 .477 2,683 S.u:W at ------,6s .296 140,438 6,110 3 .205 15,542 Intonnuil audit and securIty ...... 20 .764 2S2 -4: 6 R 20,055 2.939 3391 Can .1 ------136,M 119,085 4,693 2,613 10,133 Accounts collection and Wsloy., ..na- M.d-.t ------157,034 138233 5.262 2,081 10 .638 T .al ...... ------603,9114 732 ..2 455,052 519,328 148 .932 213 .11 4 South,eest ------141,105 122 .618 6.085 2,H2 9.841 Wevenn ------...... 215,954 187,254 7,941 2 .535 17 .934 Data processing operations ...... ------...... _ 315 .088 38SIN 251,967 284,462 63 .121 100 .642 Regional Counsel ------18 .966 18 .264 213- ...... St-II.Sucal reporting ...... 1 0,807 12.102 9,216 9,801 1 .585 2,301 .1 traWbct ...... ------18 .553 16 .614 1,403 56 :8710 C.1 I------...... ------193,4~ 226 .178 161385 185,128 32 .092 41,050 R079. of International Operations --- 11338 8 .61 2 1,243 465 BOB Taste" sann...... ------...... U .618 109.058 32,04 39.937 52.134 0,121 National =ter C-te ------6,59, 51160 ,9 41 3341 CT=14 . ce : IRS Data ------20.479 17,966 174 54, 1,799 ...... 663,092 810,662 575,309 657.062 87,783 153.600 Sir, R.,i. .. I co-W .I.,ni fit . .. a .clud .ng district di-aae. offices ..d .-ic . Audit of I. rawr...... 495 .152 578,191 431,012 467.956 64,140 1104. 35 nl-f E an,Paci-;~ -; ~ ------23 .OD4 - 18.974 - .030 NOnh,Attant,c _.. ------12.556 11 .213 19, 3S2 1 .110, 7 as'p;=d"."ad 19 .367 78,066 16.526 22.995 Mid-Ati.ntic ------9,417 7,793 226 167 1 .231 ET:. ;ap,.o1,qdn. once,i,,IWrW. ------85,9D3 10toill.303 69 - 16,059 - 3.2. Southeast ------9 .236 7 :433 31 361 1 . 1 32 am ...... ------3 812 36 .892 30,315 31,850 2,497 5.0.2 Central ------a,075 7044 165 213 652 T nical r Ings and set,cas ...... 18870 17 .181 16)978 14292 1,992 2,589 Mid"st ------. . ------... ---- 9,829 0,029 423 450 927 L.g.,,WnacaU' ...... 30,355 35 .030 27,737 29,865 2,618 5,16 5 So,th,eesl ------7,771 a 317 248 071 W.------15 .113 121,8,6 474 442 1,51 2 Reimbursable obligations Total ...... 9 .367 4,414 7 .879 3.617 1 .488 797 C . Regional costs ralistntauted Not. : Transfer to GSA for amf of sibew totaling $8,369,000 in fiscal par 1974 is not included North-Allantic ------_ ------2,759 1 .036 518 27 MW-AlWrtic ------2,337 891 :265 .. . a, ------3,133 1,201 :805 ...... -ifi 1 .27 Central ------2 .437 111 . 1 .52 7 MW1e3t ------2309 960 269 .- ...... go Table 23-Staff-years authorized and realized ' South" I ------2 .529 696 : 717 24 92 Western ------2,281 3 '2 07a . . . - ...... 200 P.-neg. : ------A .Ilu,rlit.cl Realize d Realize d D . District director' . offices ad son,ice cents,, : Appropriation NOM AIWIUC : 1974 1975 1274 1275 1974 197 5 Allaray ------6 .667 6,189 203 7 417 A2 ------4 .012 3,386 168 11 37 Sonora. . . - _ - ~ ------1,ew S23 1,741 1,867 105 .3 1021 Man ------24786 22724 500 A I . 20 7 Accounts . Collection and teopsys, sernis, . . . . _ _ ...... 3439.527 42.61 39,597 42.517 IDg2 99 8 Orooklyn ------27 :067 25:270 350 1 '0571 r-pliano, ...... 71 7 36.05~0 34.424 37,955 99.2 99S Gullet------17.085 15,11 5 Z 27a .2 7 During------2 : 96 32 198 I T.Wl ...... 75IS97 82406 75,762 82,3W 991 998 Ifamom - .------12IS '76' AU 1 ;-, 327 136 549 I-WAse 1975 -1 197. - , 6 .5119 - 6.577 - M.rh .. .a ------. .. . 64,166 51,246 707 442 1.172 p rt-ti, ------...... I ------3 .144 2,539 111 52 143 I Does not include staff Years don,oted to allailounitable Projects . P,"d nce ------4.724 4.25 7 92 21 1 N-a-Atiantic, Regional Training CtI------154 106 2 2"1 45 NOMIAll.run, Rae,.-Clrun,li~ad Tr------153-_------1 50 --- ...... 3 Ando- Ser ce afar ------::- .- . - 28 ~428 24,403 102 223 3 .700 Brutish- Sna. r-Wr ------...... 34.244 29,97 9 183 221 4,88D el land. : Sell, ------20,914 ig.090 336 507 682 31,653 29,638 us 254 12U ZeearkPhilude'll ------; ;;; ------27.7a7 25773 '21 314 1.1 P111,r,no1 ;3.905 32D 1 93 610 Richra . ------11:801 2,502 47 '40 M W in n 3,399 3,15 5 87 20 135 Mid'TA, WinC icike -~-rwrw~i;iii;~il Ci ------* ------327 253 1 27 46 M,d-AIWntic=I-C. Ini ------* ------92 .. ~ ...... 92- ...... PhB.d.lphb Co .., ---- ...... ------37,589 32.169 87 .1 4JR92 14 6 147

Table 24 .-Costs incurred by the Internal Revenue Service-Continued (in thousands of dollars ) Table 25.-Personnel summar y Nihinten, Elid"yeam At Pan- net L. ..U.. . . ly,. -11191 ftsitilim, Rrmfi,ed Clime of Yea r l'ohmal nim"" offic'. ditithri'l. or region Total Cintriptim . Thl EqWpma.1 Odm, -on 1974 1175 1974 197 5 (4) (1) (3) (5) Senn- 1.1.1 ------76.921 52 .616 70 .700 82,266 Pe,,am,t ------6797 70,923 69,635 71 .734 Soollm at: T ..,.,a, ------_------10:94 4 11,69 3 %M5 10,632 Atlanta __ ...... ------...... __ ------17,765 15,695 805 403 853 li 7,909 352 190 .91 OnIhm I ------_------3.958 4 .579 4~305 4 .505 8.z.i ------140,995 1, 254 Is 472 ImId San.m. Total I ------72.469 71t037 73,928 77 .681 Gna.b.1; ...... 005 4409 598 271 727 DidCoi= ------t' 0 - bill ------25.111 7 25,732 22,450 23 .694 Ackson . . . 6 .063 5 U3 267 102 34 . * ------* ------11 :74~1 2 11 J..kah,nl ...... : : ------3 588 2160.7 9 1 .036756 a2.020 R-n- Oth.-. ' ...... 1 ~ .' Nal. . . . . ' : ...... _ :- :__ : : : : . . . 110 :704 .309 454 262 679 Oth------WA. 4S.72 "7 Wk 4 .89 1 Southeast Regional Training On, ------07 So,thnnial Regio,-Cnthalized! Tr. ------_------Taxpayer Samice, total ------...... 2 .91 7 3,00 1 Atlanta Se-ce Center ...... ------_ ----_------28,416 6=0 a? "6 4 .589 Ta.pa,m, Ser . Specs . ------...... --- _ ------M. .phi. S.-ort can an...... ------28,296 23,971 71 246 4 .005 T . .y.r Se, Re , ------2.07 2 .032 Other.P ------_------N .A, Et" S 969 Cant, 1: Qn-hati ...... ------15,345 13 .081 390 276 71 1 Auft tol ------:17', 2514 .386 27.890 27,411 Chair Nindl ------22,529 20 .604 524 356 S Re-. .. Aglihnnt . ------'414 44 .265 15.400 14 .2M Delta...... ------...... 29,971 Ram 553 916 1 .368 01 . A.d,l A Tarr Tech ------4,174 4 .666 4,526 4 .772 Indianapolis - ...... _ ...... _ ----- _ ...... ------15 .039 13,380 496 31W 857 Other ------6.657 7 .45 5 7 .97 2 8 .416 Lo .ithAll . ._ . . . . . 8,778 7 .809 330 95 484 . : ...... ------Employ" Plan. Cell, toned ------...... 5316 4,61 5 217 53 331 N A . 761 970 C mI 11 ------685, ------539 6 74 65 Ag"n' ------_------Nk 525 692 Central Training _ . . . ------_-----_-- : 02 10, ------1 Tin, L- IN A N.A . C .-innali Center ...... ------213,249 23 .426 83 iii 4 .527 T- AuditSo. . ."I . "'. . . ------...... ------N k ------* ------d6 N.K 34 Olne ------_ ...... N A 20 6 N .A. M6 Midemal : Aberdeen ...... 2,581 2,25,1 . 147 4 130 Intaillgranoe low ------3 .472 3 .757 3.70, 3 .795 38,094 D4 513 257 1,941 Special Ag~nts ------_ ------2~493 2,638 2.577 2,626 ------357 322 242 500 Olhe------979 l"1 9 1 .124 1 .169 Fargo ------8'6S 2 .61 112 76 176 Mileaukee------12,631 2,563 2,19911 .481 34a 1 63 639 F"Inpit org ., tablet ------N .A . 658 Ond"a ------6,928 5,111 217 2 3M R.. .. Agl ------NA . 412 417 K IS 1 ...... ------_------19 .720 17,658 630 411 1 .021 T . U . Spincrahirbi ------...... _ ...... N .A ...... - 3 P, -., ...... ------13,540 12.077 406 402 Tarr AWflom ------...... N .A . NA al; 11 .97 . OA37 387 00. . . . .671...... 655 Othe------N A . 163 160 rprizIll",Nbd ------...... ------I ------. . Will— 84 ------Appellate, total . ------...... 112 a 1128a 1 .291 K.h.,%:- . CityCenter ...... 31,44tir 95" 57 Apidellith, C nfilmlit - - ~ ------_------_ ------_ ----- ...... 615 615 618 A,thtom ------_------123 125 119 122 S.-thiml; Other ------55 0 548 55 " w 3.9-53 1-0 172 267 A . .bn ...... 24 .5-,4 21= 900 44574 .46 5 Admanarthill total ------2,935lig 3 .2 a 3,154 3.21, Chelanne ...... ------...... ------1 .698 106 60 "1 920 Me Da lag -----_------_-----_------_' ._ ------_------232 :3'&6 2D,798 065 323 1 .319 id.M helpection a, : "IN e 901 E,*.,, .c Sool-Imn ------: ------D. - . . . . ------...... ------9,680 8,491 388 142 65 2 .289 Na.A 70. 467 Liniellock ...... ------...... ------...... 5 .910 5,317 mo M me pm" .. . Tom, . ~ ------...... Nee, Ollinine ..... ------_--- ...... 121 V 10,753 339 496 540 Oklahorna City __ ...... ------...... __ 10,779 9,553 4 1 00 535 Note : Fli,in,to,merhents am ,cl,dW h, abohm fig,me Worilte ----- ...... ------_- 71860 6,963 314 141 43 6 ~nl do, ahrl 4- nnin-yews to, ,b, nh,im , So'"'Titt R*gr thal-ol Training ...... 46 n'~~`*` O""'t, 11. Inle-nonal Openflona, Nibonll 1,-,fin. ; Cent ., and IRS Oahe Center Atnilln Sithri. . = ...... 30.258 26.6375' 332 3 ,201 Incl.,lim -ement 4,ployther, In ned localy 3 n 1974 4 n 975) A,art . Hag . T,. Center ...... ------133.. .. ------133 ------NReflect, a,-y...s ,,I,zat,,n and personnel - hoil to, Naho,mt.Oh- and hold : not hl.h on Table 8 A . Not appicabl, winihin. : Ancho ag e 3,100 2.450 256 126 268 3,135 2992 205 6, .17 Bo'Helen. a . ------...... 3 189 2,760 27 .nolu' 3:968 3.527 149' 30 Los Ang ism _ ...... ------_------50,797 45.79 1,498 480 3.02420 . Pincent . . . . ------__...... ___ ...... 8.009 7.051 2 1 89 6, R.M. a ...... 1 7 ' 613'g 3262 1422 .9011 no ...... ------...... : : : -- : : : : ,1 022 5 7 3611 San Lee : ...... 3,N7 3:612 '3314 3!13 236 San F.n,!. City.o. ------...... -----...... I ...... 32,900 29' 669 1 .020 280 2.030 Sl...... 13,207 11 .iS3 527 310 697 Tim ning at 513 9 201 96 "I..Z ". .R% .!=&nlild0 .tm dC" ------230 ------Md-n Sam. Can- . . ~ ...... : :: ...... ------iw'W4 232 aill no Sam . Canto...... - ...... 30.D46 25,769 151 265 3,861 148

Table 26 .-Ouantity and Cost Statistics for Printing I Co., Index Quantity MDOD dollar. ) Class .0 Vi FY43 FY- F145 PackagesTI, OtherFY-74 P`m"QFY-75

1 . Tax Packagais 11975) 1 Pasokaga I (Forch 1040, Instruct,ons, Sclueftles, ASB-40 pages) ------23 .445 ...... ------1 .281 Package 2 (For, 1040 . Sched,les MS. D, E . R . & Inst-tions-52 begins) - 10.490...... ------751 P,Package 3 (Form INO . SChW,ies A . 8, C. 0 . E&R, SE & Imuluctlom-60 Pen) B .M0 ------695 =Zorm 1040. Schedules MO. C . 0 . E&R, F, SE. F. me 3468 . 4136, 797 . & :g ns--80 . 25 ------1 35 9 PPacka ck g : 110450A I FormPages',,1, A -i ------natl-1115-ii --4P7.p ---.) ------* ------*. .----.. . . 382 .673 4431 06 (Form 1065 : Schocul, K-1, Form a u :a pa"es) 2,400 ...... Package,ha"ucl"20 (Fo rm 1120, S.ruiudul . D . For., 1120-W, 346a, 4797. 4874 . 7004 -&-el) paigi,a) ...... ------2.360 ...... ------

Pack, Instructions. S&edules AAS~12 capeal 37,639 ------325 2.205 Fiscus, I IFO I(NI . I heoulas ME, D~ E, R . . . instructio n-Wpsi~aal------* ------.. . . 10 :170 :: 752 P. Fo ;in No0. Sch-les" A. S . C. 0. E&R. SE am Instrucuork- 2 pag"t a 30D 225 22580" Package 4 (Form 1!!70, Sch-issa "S . C. D. E&R . F, SE, Forms 3460.~4136, .4791. no 115-Cu. 2,725 . . . . ------...... 3 6 "For, I PNs8A $a) nd 'I lisl ~ ...... 22.400 ------175 67 PackagePitck age 'OrmA 106~, Sch-le KuC1 I OF"mIF 167471 '*d_Pk,' ZO ------0 24 0 Package 1120 (Forso. 1120, Schiclue 0. Forms 112~M 3468, 4797. 1874~ IN,:)n d pages) ...... ------2,200 ...... ------. 24 2 3. Talk Package, (1973)~O. IF Instruction,, School A--32 pages) 34.925~...... 25 I.BN P:C'c , :g: 2I F.=M INO . SChantults ::ii------i...... 11,425---- 25 7" IF rm 1040, Schedule, A. C D, Ei AE . .tZ ; ..`iucboma-r52a p 7830 .. . 25 .2 P'c'Pack :g: 'I Form 1040 . Sch.bul ., 4. C, D, EIR . F . SE, Form 4136 A instructions- 2N . 1 10 644 11 P . .. . 2 --- . . 2. . . Package 1065 (Form 1065, Sch-le ~1, For, 479~ V'run ]~iorw"a a 4 .0- ...... - ...... 0 208 Pao 120 1 For, 1120 . Schedule D, Forms 112~iiy . M68, 4797~ 4874 . 7004 & instruct,kegs 1 ""-`0 Pages) ------2,000-- ...... - ---- 0 20, 4. E. ..y-t T" P-stagi.. . .s...... Pub 393 (1 us) . 5640- ...... : . . 2 ------i6 700 (1974) - . ~ ...... PullPut,: 3931- (1973) ...... "'02 6 :, : ...... 401 ......

Total Coal at Tak RM,m 6 limumballon. for Marra sibillings to In...... ------...... 212 5M3 11 .189 OttwTUR~m~ln-.UCU~Publ~~ amme,andPany"Its-- 133 - 15348 21,142 Maunhortallska Fornes anal Pamphlet, . . . ------611.921 631 .908 , 6:555 8,207 7 :Vpdr'=""so ------295 :981) 373 .450 ...... 2 .072...... 2. . .775 8 : ------4 660 ...... 204 . . . . . Grand Total ...... ------3,254.425 3 .639 .812 ------. . - X122 43,313

IaDue to InkI Olu,, of printing requirements. solicitations for the major tu packages are issued in each year in the Spring, E,lbencilue, may. therefore. oyerlap nyo, hiucat ly-MU1110hat costs ill be incurred to, the 1975 is . ba,kaors 7,3FY-76 Ill FY-73 Costs may be only that amount ekpeMW during Y- y tor tak year 73 packages . Economic Stab,l.zal,on Program as no longer , offset in F I

150 15 1

A Conference : Examinatlion program: Inter-American Center of Tax Appellate, 30 Classification and selection of returns, 22 Administrators, 46 Procedures, 3 1 Acts : Returns examined, number of, 2 3 Intennational tax training, 46 Corporation Income taxes : Tax recommended, additional, 25 Intergovernmental Personnel Act interpretative activities, 49 State & Local Fiscal Assistance Act- Additional assessments proposed, 25 Excise taxes : 1972, 6 3 Collections, 14-1 5 Additional assessments, 25 Refunds, 12-15 Returns filed, 1 3 Actuarial matters, 41 Returns : i Advisory committee, 76 Examined, 23 Filed . 1 3 Alcohol and tobacco tax : F Joint Commfte on internal Statistics on, 12-14 Team audits, 26 Revenue Taxation, 2 7 Courts, statistics on : Appeal s Federal-State cooperation, 62-64 Appellate division, 30 Circuit courts of appeals, 52 Court of Claims, 49, 51-52 Agreements, 62-64 Processing, 31 Audit coverage, 64 L Statistics on, 5 2 Supreme Court of the United States, 50 Tax. Court of the United States, 49-50 Computer-information exchange, 63 Assessments, additional, 22-26 U . S District Court, 4 9 Training, 6 3 Legal activities, 48-58 Assistance : Criminal prosecution : Foreign investors, 45 Foreign tax, 46 Analysis of cases, 32 Foreign tax assistance program, 44 Overseas, 44 Cases . disposal of, 33 Foreign tax officials assistance to, 46 IM Taxpayers, 6 Results of, 55-56 Forms and form letters, 8 Magnetic tape, 20 ID Fraud Investigations, 32 B Management activities, 72 Map of Internal revenue regions Delinquent accounts : and districts, 79 Bulletin, Internal Revenue, 36 Disposals, 28 G Statistics on, 29 Mathematical verification : Additional tax from . 20 Disability Insurance taxes : Gift taxes: Statistics on, 20 Collection, 14-15 Collections, 14 Refunds, 12-1 5 Refunds of, 15 DiscrImInant function, 22 Returns filed, 13 Charts Examined, 25 0 Organization, 48, 78-7 9 E i Chief Counsel, Office of, 48-58 Officers, principal, Internal Revenue Cases involving criminal prosecution, 55 Employee Plans and I Service, 82-86 Chart of new organization, 48 Exempt Organizations, 40-41 Disposals of cases by, 52, 55 Income tax(es) General litigation, 50, 5 3 Employment taxes : Technical and administrative, 57, 58 Collections, 14-15 Additional, from enforcement, 29 Refunds of, 12-15 All returns, 1 3 Collections : Returns: Corporation, 13-1 5 Personnel : Alcohol taxes, 13-14 Recommended additional tax penalties, Examined . 20-23 25 Equal employment program, 74 Corporation taxes, 13-1 5 Filed, 1 3 Individual Income taxes : Disability and old-age insurance, 13-15 Handicapped, use of, 74 13-1 5 Enforcement activities : Collections, 1 4 Investigations, 70-71 Employment taxes, Mathematical verification of, 20 Estate and gift taxes, 13-15 Delinquent accounts, 28 Labor-management activities, 7 4 Delinquent returns, 29 Refunds of, 1 2 Excise taxes, 13-15 Returns, 1 3 Individual-income taxes, 13-15 Examination programs, 22-24 Presidential Election Campaign Fund, 19 Mathematical verification, 20 Tobacco taxes, 13-15 Informing and assisting taxpayers, 6-9 Programs : Unemployment insurance, 13-15 Tax fraud investigations, 3 2 Inspection activities: Foreign tax assistance, 44 Withholding taxes, 14-1 5 Workflow in the Service and the Courts, 30 Internal audit, 68 Overseas taxpayer compliance, 45 Commissioner's Advisory Group, 76 Estate tax : Internal security, 68-69 Rebate, 1 8 Collections, 14-15 Investigation, 70-71 Strike forces, 33 Commissioners of Internal Revenue, Refunds of, 12-15 80-81 Statistics on, 7 1 Taxpayer assistance, 6-9 Returns : Intelligence Division : Component authority activity, 45 Examined, 23 Prosecution, 3 2 Statistics on, 29-32 Publication Information activities, 8 Computer audh programs, 27 Filed, 13 Tax-fraud investigations, 32 152

R U

Railroad retirement taxes, 13-15 Unemployment Insurance taxes : Rebate program, l e Collections, 1 4 Refunds: Refunds of, 15 Excessive prepayments, 12 Returns filed, 1 3 Statistics on, 12 Regulations: Selected regulations published, 37 V Requests : Technical Advice, 36 Verification, mathematical, results of, 2 0 Revenue Rulings, analysis of, 36-37 Returns filed: Classification and selection of, 22 w Examination of, 22 Number examined, 23 Workflow In the Service and the Courts, 30 Projection, 64 Statistics on, 12-13 Verification, 20

S;

Seminar, Inter-American, 46 Service to taxpayers, 6-9 Statistics, highlights, 64 Statistics of Income releases, 37 Supreme Court opinions : Civil cases, 5 0

T

Tax Administration System, 60 Tax Court activities, 49-50, 52 Tax forms, 7 Taxes, additional, 20-26 From mathematical verification, 20 From examinations, 2 4 Taxpayer assistance program, 6-9 Tax rulings, 36-38 Requests for, 36 Statistics on, 36-37 Tobacco tax(es) : Collections, 13-14 Training : Executive, 72-73 Other, 75