1980 Annual Commissioner of Report Internal Revenue 1980 Annual Commissioner of Report Internal Revenue

Addenda: Statistical data used in the texi and tables of this vol- Contents Introduction/3 Managing the System unne are on a twat year basis, unless otherwise nol~ Collecting the Revenue Research and Operations Analysis/35 ad. For example, date headed "1980" Pertains to the Returns Received/9 Major Research Projects/35 liscal year ended Sept. 30, 1980. Mathematical Correction/9 Taxpayer Compliance Measurement/35 Graphs. charts and ISM figures have been rounded Tax Receipts/10 Statistics/36 and my not compute precisely Compared to the ste, Refunds/10 Tax Models/36 IiSlical tables, which are based on unrounded figures. Penalties/13 Legislative Anaysis/36 Tax Credits/13 Technical Activities/37 Presidential Election Campaign Fund/13 Updated Procedures/37 Combined Annual Wage Reporting/13 Internal Revenue Bulletin/37 Windfall Profit Tax/15 Art Print Panel/38 Internal Audit/38 Assisting the Taxpayer Internal Securty/38 Write, Call or Walk In/17 Integrity Program/39 Toll-Free Telephone Assistance/17 Fiscal Management/39 Walk-in Service/18 Personnel/39 Disaster Assistance/ 18 Recruitment/39 Educating Taxpayers/18 Labor Relations/39 Forms and Publications/19 Informing Awards and Recognition/39 Taxpayers/ 19 Other Personnel Programs/40 Clarifying Notices/20 Centralized Services/40 I Making Information Available/20 Facilities Management/40 Helping Other Countries/21 Paperwork Management/40 Problem Resolution/21 Other Facilities Programs/40 Department Enforcing the Law Security/41 of the Examinations/25 Training/41 Treasury Examination and Correction Results/25 Equal Employment Opportunily/42 Internal Large Corporations/25 Data Services/42 Revenue Tax Shelters/27 National Computer Center/42 Service W-4 Program/27 Detroit Data Center/43 Publication 55 Unreported Income/27 Chief Counsel /43 Quality Review/27 Criminal Tax/43 Appeals/27 EP/EO/44 Criminal Investigation /28 General Legal Services/44 Cooperation With Others/28 General Litgation/44 Illegal Tax Protesters/28 Interpretative /45 Collection/28 ' Legislation and Regulations/45 Service Center Coilection/29 Tax Litigation /47 Nonfier Identification /29 Appendix/49 Workload Control/29 Returns Compliance/29 Bankruptcy/29 Offers in Compromise/29 Child Support Obligations/29 Information Returns Program/30 International Operations/30 Compliance Overseas/30 Assisting Taxpayers Abroad/31 Tax Treaties/31 Employee Plans/32 Exempt Organizations 133

The Commissioner's Annual Report is produced by the Office of Public Affairs, Room 11 12. Inter- nal Revenue Service, 1111 Constitution Ave., N.W., Washington, D.C. 20224. It is available from the Superintendent Of Documents, U.S. Government Printing Office, Washington, D.C. 20402. For =to by th, Supefint,,dont of Dmarrents, U.S. Go-frit Printing Offim, Wwhington. D.C. ~202 Introduction 3

This is my fourth annual report as Commissioner ability to pay taxes, ways must be found to pre- of Internal Revenue, and my last. I would there- vent abuses of these tax expenditure provisions. fore like to discuss some of the goals, accom, The willingness of taxpayers to "invest" in tax plishments, unfinished business and frustrations shelter schemes providing claimed tax benefits of tax administration from a somewhat broader unlikely to be sustained is, in my view, largely perspective than is customary in an annual re- the result of an inadequate penalty structure in port. our tax laws. The taxpayer is induced to play the In my letter of resignation to the President I said, "audit lottery" because there is little or no risk "The fair and sensitive administration of tax laws or cost in playing and losing. If the taxpayer is crucial to the existence of a just society. I feel claims questionable deductions and he is not privileged for the opportunity you have given me audited, he has won, (We have reduced but not to participate in this important work." eliminated the odds against winning by in- If we expect taxpayers to comply voluntarily with creased audit coverage of these returns.) 11 he is our tax laws we have an obligation to assure selected for audit and the claimed deductions are disallowed he may still have won because them that the law is administered evenhandedly, tax payment at a favorable that compliance activities are fairly directed, that he has deterred his help is available to cope with the complexities of rate of interest. This deferral period is often quite our system, that there is a fair and speedy meth- long, particularly it the taxpayer contests the od to resolve conflicts and that complaints are proposed disallowance in court, even it he con- resolved expeditiously. I believe we have made cedes before trial. substantial progress in meeting these obligations While the Internal Revenue Code provides a in the past 3 1/2 years. penalty for negligence, it is often not sustainable Improving fairness in directing compliance activ- against a taxpayer who claims to have relied on ities has resulted in substantially increased at- the advice of promoters, their lawyers and ac- tention to abusive tax shelters~ Through abusive countants, particularly it the transaction involves tax shelters many high-income taxpayers claim very complex provisions of the law, and tre- substantial unwarranted reductions in thei,m- quently even it the professional opinion con- come tax liabilities. This situtation, it uncorrect- cludes that the claimed tax benefit is probably ed, is unfair to average taxpayers and demoral- not available. izing to the tax system, Dealing effectively with I believe a reexamination of the penalty provi- abusive shelters has proved to be a difficult un- sions is in order, If there were a risk commensu- dertaking requiring substantial examination, rate with the claimed rewards then taxpayers technical and legal resources. But it is an essen- and their advisers would make a more realistic tial undertaking. We have identified approxi- assessment of the allowability of the claimed tax mately 27.000 abusive shelters involving about benefit before making the "investment." Such 190,000 lax returns claiming deductions of over penalties could be limited to substantial deficien. $5 billion. cies. It is worth noting that tax shelter activities are The role of the professional adviser in the mar- not a problem inherent in an income tax. These keting of tax shelters has been a concern to the activities come about largely as a by-product of Service for some time. Since the applicability of provisions put in the tax law to achieve nontax existing penalties may depend on the participa- goals; to encourage or reward conduct consid- tion of tax professionals in the scheme, they ered to be socially or economically desirable. have a particular responsibility to the Treasury in Virtually all of the tax shelters we have seen are undertaking such participation, In many tax based on the use or abuse of provisions in the shelter schemes it appears that the product ac- Code that, because they are essentially expendi- tually being marketed is the lawyers'or account- ture programs engralled onto the tax law, devi- ants' opinion. 11 is that opinion that is viewed as ale from the proper measurement of income: for giving the "free ticket to the audit lottery." example, accelerated depreciation, immediate Therefore the Treasury Department recently pro- deduction of intangible drilling costs, immediate posed revisions to Circular 230 governing stan- deduction of development expenses of mineral dards of practice before the Treasury Depart- deposits, investment credit, deductibility of char- ment that deal with this problem. itable contributions of property at market value An area of tax shelter activity that deserves spe- rather than cost and immediate deduction of re- cial comment because of its growth in recent search and development costs. Unless years is the use of commodity or financial fu- Congress is prepared to reverse the trend of using the tax code tures contracts to create artificial losses and de- for purposes other than the ductions. These transaclions come in a dazzling computation of income as a measurement of 4 PJ

array of forms and combinations. What they all income tax returns, has been significantly ex- have high compliance with little intrusiveness. Our tax laws are complex - more complex than have in common is the claim of deductions and panded in recent years. The Service has in- Broadened withholding of tax at the source they need to be although real simplicity is im- losses far in excess of the taxpayer's actual creased the number of documents matched and would make a substantial losses or his risk contribution toward possible. Simple rules cannot be devised to of loss. Essentially the taxpayer provided new improved systems for the use of reaching that goal. compute fairly the tax liabilities of multinational has various market positions designed to bal- the information resulting from the match, corporations, syndicated partnerships or gener- ance gains against losses so that a loss in one It is therefore disappointing that Congress e- During fiscal year 1977, IRS processed 50.5 jected the Administration's proposal to withhold ation-skipping trusts. Complex transactions fre- position will be roughly offset by a gain in anoth- percent of the 481 quently require complex rules. er. The taxpayer then claims a loss on one side million documents received. taxes from certain dividend and interes pay- The Service plans to process 154.5 percent of the merits, and has not yet acted on a pro;losal to But many of the complex provisions of our tax of the transaction, simultaneously establishes a 547 million position to secure his offsetting gain and defers documents received during this fis- withhold taxes on payments made by busi- laws are unnecessary to the administration of an cal year. This very substantial increase is largely nesses to certain independent contractors income tax, that is, not necessary to the appro- realizing the gain to a subsequent tax period. In the result of the some combinations it is claimed that the loss is Combined Annual Wage Re- those most like employees. priate measurement of a taxpayer's ability to pay short term or ordinary and the offsetting gain is porting program, Under this program employers tax. Rather they are essentially expenditure pro- send their W-2s to the Social Security Adminis- Evenhanded administration of the tax laws obvi- a long-term capital gain. The Service has estab- ously requires not only the fair allocation of grams administered through the tax laws. There lished special programs designed to identify re- tration, which converts the information to com- are close to 100 of I hese provisions listed in the puter tapes that IRS can then process directly, compliance resources but the uniform applica- turns with such transactions and to combat tion of the tax laws. Our regulations, revenue current budget and together, I think it is fair to these abuses. But legislative action is needed to New procedures for handling information docu- rulings, letter rulings and technical advice are say, they are responsible for most of the com, prevent taxpayers from claiming these deduc- ments, in place for the first time this year, will the means by which we inform the taxpaying plexity facing the average taxpayer. tions and losses in the first place, The issue is provide tax examiners with the information from public and our own personnel of the Service's Apart from the merits of the goals sought to t>e very serious, involving claimed losses of hun- IRP documents-at the time individual tax returns position on the many interpretive problems that achieved by these provisions and apart from the dreds of millions of dollars. It is an affront to our are examined. This information should substan- arise in applying the tax laws in our complex so- structure of the particular program, i.e., how its tax system to permit taxpayers who frequently tially increase the efficiency and effectiveness of ciety. They are the means by which we seek to benefits are distributed and the criteria for quail- have among the highest incomes in the country the examination program. We have also, for the insure the uniform application of the laws so that tying, there is a substantial price that is paid in to file returns showing little or no tax due as a first time, revised our processing system to pro- taxpayers with similar transactions are treated using the tax system for purposes other than result of transactions with little economic signifi- vide early notices of nonfiling of tax returns in similarly. measuring income. That price is complexity. cance. association with the IRP program. In recent years Congress has prohibited the Ser- While no single tax expenditure can be said to Largely because of the use of tax shelters the While the information returns program is effec- .vice from issuing such interpretations concern- overburden the tax system, in total they do, Too Service has changed the way it classifies returns tive for identifying substantial numbers of appar- ing the taxation of fringe benefits, determina- little attention is paid to the damage to the tax for audit coverage and other purposes. For ent underreporters and nonfilers, it is impossible tions concerning racial discrimination in tax-ex- system - to the average taxpayer's feeling many years returns were grouped by classes because of resource constraints to pursue every empt schools, the taxation of commuting ex- about the fairness of the tax system - in enact- based on adjusted gross income (AGI) and gen- lead. Therefore, selections must be made of penses and section 280A relating to relatives' ing these provisions. Taxpayers cannot be ex- erally the higher-income classes received great- those leads most likely to be productive, just as use of rental property, office in the home and re- pected to believe that a tax system is fair if they er audit coverage. However, artificial deductions we select for audit those returns that appear to pairs of rental property as personal use. In each cannot understand it and our tax laws are unun- - largely tax shelters - have caused many re- be most in need of audit. We have undertaken of these instances, while the Service is prohibit- erstandable to too many people required to turns of taxpayers with high real incomes and several research efforts designed to improve our ed from issuing regulations and rulings the un- comply. complicated financial and tax affairs to be classi- selection systems, which we hope will further derlying law was not changed and, therefore, fied in low AGI classes with a correspondingly improve the productivity of Moreover, there is a tendency to overrefinement this very important the interpretive problems have not disappeared. of many provisions of the law in the name of smaller audit coverage. To correct this problem program. Our personnel use their best judgment in inter- and more effectively allocate audit resources we fairness. I would like to repeat what I said in re- In last year's annual report I commented on the preting the law but inevitably in some cases marks earlier this year to the Inter-American have changed our system of classifying returns study the Service had published on "Estimates these judgments will vary. The result is that dif- Center for Tax Administrators. for all purposes to one based on total positive in- of Income Unreported on Individual Income Tax ferent taxpayers are treated differently and the come (TPI). TPI is a more accurate measure of Returns." That report estimated that between Service is prohibited from resolving these incon- In a desire to differentiate carefully among the taxpayer's tax affairs. The result of this re- $75 and $100 billion of income from legal sistencies, taxpayers- with slightly different abilities to pay, classification will be that more examination re- we may inadvertently, and with the best of in- sources was not reported for tax year 1976. A particularly dramatic illustration of this prob- sources will be devoted to higher-income tax- During that year $1.1 trillion of tentions, reduce the perceived fairness of the payers. This reclassification will reduce the total income was re- lem is the situation involving private schools. As system, and even its actual fairness, it the ported, This unreported income is a concern to a result of a class action involving Mississippi number of tax returns examined as resources the Service and should nuances of the system become too complex are diverted from simpler to more complex re- be a concern to all tax- schools the Service was ordered by a federal and subtle to be managed by the average taxpayers. The failure of some taxpayers to pay district court to apply rules to determine whether turns, but will improve the fairness of the exami- their required share payer. This situation seems particularly appar- nation program. of taxes increases the bur- certain private schools discriminate racially and ent in the case of certain deductions. It seems den on honest taxpayers. High compliance is are therefore ineligible for tax exemption. The Traditional audit activity involving an examina- essential to a fair tax entirely reasonable to put great weight on sim- system - to avoid overtax- court-ordered rules are very similar to rules the plicily rather than perfect fairness where the tion of taxpayers' records is not the only pro- ing the honest. Service is specifically prohibited by Congress gram the Service has for verifying compliance differences to be achieved are usually small, While examination and document matching are from applying in the rest of the country. Such are not limited to a particular economic class with the tax laws. The information returns pro- effective programs congressional actions do nothing to enhance re- gram (IRP), which matches information docu- they cannot equal the level of of taxpayers, and are not subject to significant compliance achieved when income is subject to spect for the tax system or for government. Al- abuse." ments furnished by payers of wages, interest, most any clear substantive rule that can be ap- dividends and certain other income items with withholding unless extended beyond levels that While we wish for simplicity we must administer are economically feasible and socially accept- plied uniformly is better than the present situa- able. The goal of tax administration should be to tion. complexity. 7

C-i. J_ K~ (.Ni -aI) This year, to give added emphasis to this pro- Ma--W. aaalf S'a-0 (10'. expand W. H HNI.I. Nallh AII.N gram, to increase its importance and its Pagal Cia-mlom, RIM L FIIN~ responsibility, I created a Taxpayer Ombudsman A== Cl-- (Imman). D-ld in the National Office who supervises all prob- J PON, kWal Cowin- (Dala sel-): M. EOW lia"Wima ~Wrl lem resolution functions and who represents C-isaloral Raa~. Semm 2W Ralam taxpayers' interests generally. The Ombudsman 1 0 All-, Aaalaall W IN ca."Nall-I (Ellial or.~M; reports directly to the Deputy Commissioner and PhIllp E CWM ASSaIiiI COMMON, the Commissioner. (C."Ifill ftad M flal W_ )MI-1; R-11 E 001. Fairness to taxpayers also requires that they C-1-1 (KalalIa Ri or WIN A kkGi Sl Req,amf have a ready means to resolve technical legal CorNa.1-1. Rar I. Nil, I-q disputes with the Service. During 1978 we reor- M~ kna~al C-N, Lo, C ganized our administrative appeals system. Prior CMNSIS— CMI al Regional Camimmm F Ifildr~. ith,nil M~ Hwarlal to the change taxpayers could take their dis- C-i-NI: al S A10 %U- putes to a district conterence and then to the Ala;i- CamNalow 1EMPID" NNIVE-0 OVa-la) Appellate Division. District conferees had only 19,1) .~ 0-aa, J limited settlement authonty and were under the A-al III IN O'NaI jurisdiction of the district office that had made U_i'Saalaf. JaSeah T )-i .AWMI the determination being contested. The Appel- ca- ArN, I O.N. SI)III-Il Pleganal late Division was independent of the district office 0" C-1-1.a G~aad and had full settlement authority but appellate (Ta'., P. N~ A.:lIaN C-.aN, conferences were not held in as many locations pell'oralaul). TI-as A UnIa. AiNatm as district conferences and were therefore less C NN- A Ams i AaNlIlarM IN C-1.1-1 (Piallic convenient for many taxpayers. . Man). am ai D WaIall, Wil-All- Raganal C.- Resources for taxpayer service activities must tions have been thoroughly revised and simpli- Under the reorganization district conferences A.SWMW,ai IN CaaNN- Ma- MLL compete with those for compliance functions fied. were eliminated and the Appellate Division was F P 'a0 C- a. S.- ftp.l.n and for the processing of returns. Compliance The number of telephone calls answered, the expanded. Now taxpayers have a single hearing - .1 1:1-la V 1. rNla functions produce a direct yield to the Treasury accuracy of the answers and the number of tax- with an appeals officer who has full settlement many times their cost. There is, therefore, some payers serviced at our offices have all in- authority, is independent of the district office pressure, particularly in the face of the tight creased. This past fiscal year we answered 35 and is available at every location where district budgets we have experienced over the past four million telephone calls and served 8 million tax- conferences were formerly held. This reorgani- years, to direct resources to those functions. I payers at our offices. zation has resulted in more prompt and conven- firmly believe, although cannot prove, that vol- ient resolution of disputes. untary compliance is better when taxpayers are We have a substantial effort underway to im- treated fairly. We cannot measure the contribu- prove the understandability of the various no- Finally, I believe that a basic principle underlying tion towards voluntary compliance of enforce- tices we send to taxpayers, many of which are a fair tax administration system is that individuals ment or service functions. In enforcement we indeed bewildering. I hope we can make them are entitled to a high degree of privacy protec- can measure direct yields but not improved vol- less so. tion in their tax returns and in the records they untary compliance, which I believe is much must maintain to meet their tax obligations. We There is probably nothing more frustrating to should not put these taxpayers in the dilemma Of more important than direct yield. And service to taxpayers than the difficulty sometimes encoun- taxpayers has no direct measurable yield. complying with the tax laws at the risk of prose- tered in trying to get the Service to correct a culion for nontax criminal violations. The Inter- But fairness requires that the government help mistake that it has made. Mistakes are not limit- nal Revenue Service's primary task is to collect taxpayers comply with the burdens it has im- ed to the IRS. They are inevitable and the diffi- taxes under a voluntary compliance system. not posed and we have emphasized and improved culty of correcting them seems to be a function to enforce the Nation's nontax criminal laws, our service operations over these past years. of the size of the organization making them. collect nontax debts or gather statistics for non- We were able to make major revisions of the To help taxpayers who have been unable to get tax purposes. Tax returns and tax administration forms in 1977 largely as a result of the Tax Re- errors corrected in the normal course of dealing should be used for tax purposes. We will pay a duction and Simplification Act of 1977. As a re- with the Service, an experimental problem reso- heavy cost it we use the resources of the tax sult of those changes and efforts to expand use lution program was undertaken in 1976. We system in an attempt to achieve nontax ob)00- of the simple Form 1040A by those taxpayers have now expanded this operation to every dis- lives. who can use it, the number of 1040A filers in- trict office and service center. Each such office I leave the next Commissioner a professional creased by 8.7 million taxpayers from 1977 to now has a special staff charged with the respon- and nonpolitical organization of public servants 1980 while the number of long form filers de- sibility of straightening out persistent problems. dedicated to doing a difficult job fairly, I am hon- creased from 56.5 to 55.3 million. The problem resolution officers have the knowl- edge to cut through red tape and solve such ored to have served. The 37.6 million taxpayers who now use the problems on a personal basis. There is follow- Form 1040A face little of the complexities of the problem handled to make sure Internal Reomue Code. Real simplification of through on each the system is achieved each time a taxpayer it is properly resolved. Last year over 200,000 problems were handled in this program with a uses the 1040A rather than the 1040. To pro- very high degree of satisfaction among taxpayers Kurtz vide further assistance to taxpayers, our instruc- sioner of Internal Revenue 8 Collecting the Revenue 0

Returns Received Mathematical Correction The Internal Revenue Service received 143.4 As a result of checking the mathematics on 88.9 million tax returns and supplemental documents million individual returns, 2.9 million taxpayers during 1980, for a 2.3 percent increase over the were found to have made mistakes that over- 140.2 million received in 1979, Over 93.1 mil- stated their tax liabilities by $591 million, an av- lion, or 64.9 percent of all returns received, were erage of $203 per return. On 3.6 million returns individual tax return Forms 1040 and 1040A, taxpayers had understated their tax liability by while 90.8 million had been received in the pre- $1.1 billion with an average of $315. vious 12-month period. More than 37.6 million individual taxpayers - 40.4 percent of all ndi- Error rates for Forms 1040 and 1040A rose vidual filers - used the Form 1040A, i slightly in 1980, with 6.3 percent of the 11040As to over 361 million in 1979, a rise of 4.3comparedPer_ processed having mathematical errors com- cent. The number of individual taxpayers filing pared to 5.5 percent for 1979. The error rate for Form 1040 increased 1.4 percent from 54.5 mil- Forms 1040 was 7.5 percent in 1980, 7.3 per- lion to 55.3 million this year. cent in 1979. The error rate increase is mostly due to math error notices being sent to taxpayers who qualified for the earned income credit Number of Returns Filed, but did not claim it on their returns. by Principal Type of Return (Figures in thousands. For details The IRS also chocked the amounts claimed for see Statistical Table 7.) estimated tax payments and found that taxpayers underclaimed $618 ritillion and overclaimed Type of Return 1979 1980 $752 million. Grand Total "140,201 143,446 Individual Income Tax Returns Income Tax, total -104,910 107,827 Mathematically Verified Individual R90.803 93,143 (In thousands) Declaration of 1979 1980 estimated tax 8,425 8,699 Number verified Fiduciary 1,804 1,877 by computer 87,382 88,945 Partnership 1,353 1390 Number of retums on which mathematical Corporation -2,525 2,718 errors were detected 6,003 6,468 E111111111111,11 Tax 159 148 Percent of returns Gift Tax 202 216 with mathematical errors 6.9 7.3 Employment Tax 26,219 26,499 Returns with Increase: Exempt onwizallon 450 444 Number 3,755 3,556 Employee Plans 1,214 792 Amount 905.624 1,119,633 Alcohol, Tobacco and Firearms -1543 S47 Average amount $241.16 $314.88 Excise Tax -1,014 909 Returns with decrease: Supplemental Number 2,249 2,912 Documents* -5,490 6,064 Amount 357,351 590,832 RData revised from pre,ious an-1 report. Average amount $158.92 $202.91 ;11.1.d. For- 104OX, 1120X. 2688. 4868, 7DD4. Timt. 20L M. 7005, 990AR, 4578. 6069, 990BIL, 1041A and 2438." 10 11

Net Internal Revenue Collections Gross Internal Revenue Collections (In thousands of dollars) (in thousands of dollars. For details see Statistical Table 1) Not Collections Percent Increase or Decrease Gross Percent of 1990 Source Collections Refunds I Amount at Total Source Collections 1979 1990 Amount Percent Grand total S19,375,273 53,1504,011 4615,8711,222 100.0 Grand total 1 100.0 460,412,185 519,375,273 58,963,088 12.8 Corporation income taxes 72,379,610 7.779,937 64,599,673 13.9 Income taxes, total 69.3 322,993,733 359,927,392 36,933,659 11.4 Individual income taxes 287,547,782 -44,753,862 242,793,920 52.1 Corporation 13.9 71,447.876 72,379,610 931,734 1.3 Employment taxes, total 128,330,480 571,486 127,758,994 27.4 Individual, total 55.4 3251,545.857 1287,547.782 36,001,925 14.3, Old-age, survivors, disability Withheld by and hospital insurance 122.486,499 507,290 121,979,209 26.2 employers2 43.1 3195,331,016 4223,801,608 28.470.592 14.6 Railroad retirement 2,534,981 1,218 2,533,763 0.5 Other' 12.3 56,214.840 63,746,174 7,531,334 13.4 Unemployment insurance 3,309,000 62,978 3,246,022 0.7 Employment taxes, total 24.7 112,849,874 128,330,480 15,480,606 13.7 Estate and gift taxes 6,498.381 108,901 6,389,480 1.4 Old-age, survivors, disability and Excise taxes hospital 24.619,021 289,865 24,329,156 5.2 insurance, total 23.6 107.525,982 122,486,499 14,960,517 13.9 ;iDoes not include interest paid on refunds. In the narra- - Refunds of Forms 1 D40 and 1 D40A minus FICA, but in- Federal ins rance nve, in total refund figure of $54.0 billion includes $504 cluding employment tax. ,,Ilion !snarest. contributions 22.5 102,492,463 116,763,618 14,271,155 13.9 Self-employment Tax Receipts Excise tax revenue rose to $24.6 billion, up $5.6 insurance contributions 1.1 5,033,519 5,722,881 689,362 13.7 billion, or 29.2 percent, over last year. The sharp Gross tax receipts in 1980 rose to $519.4 billion increase. was due primarily to receipts from the Unemployment insurance 0.6 2,958,000 3,309,000 351,000 11.9 passing the one-halt trillion dollar mark for the new windfall profit tax. first time. Total receipts showed an increase of Railroad retirement 0.5 2,365,893 2,534,981 169,088 7.1 $59 billion -- 12.8 percent - over 1979. Estate and gift taxes increased by $1 billion Estate and gift taxes 1.3 5,519,074 6A98,381 979,307 17.7 percent - to $6.5 billion. 17.7 Income taxes accounted for over two-thirds of Excise taxes, total 4.7 19,049,1504 24,619,021 5,1569,517 29.2 all tax receipts. Individual income taxes of $287.5 billion reflected an increase of $36 bil- Refunds Alcohol 1.1 5,647,924 5,704,768 56,844 1.0 lion, or 14.3 percent over the prior year. Corpo- The IRS paid $54 billion in total refunds to 75 Tobacco 0.5 2,495,517 2."6,416 -49,101 -2.0 ration incorne tax receipts were $72.4 billion, for million taxpayers including 4.5 million checks to- Other 3.2 an increase of $932 million or 1.3 percent. taling $1.3 billion for taxpayers who claimed the 10,906,063 16,467,837 5,561,774 51.0 I Collections am adjusted Social security, self-employment, federal unem- earned income credit. In 1979, 69 million re- to ...lud. .-rits tram, sec. 201 (a) Of the social Security Act as amended, and fernad to the Government of Guam includes all OASDHI taxft. The estimates shown for the ployment and railroad retirement taxes totaled funds totaling $41.7 billion were paid, This year 2 Estimated collections of Individual income tax vvithheld refunds to 72.3 million filers of Forms 1040 and two categories of individual Incorne taxes were derived $128.3 billion, up $15.5 billion, or 13.7 percent, are not reported separately from .1dag.. survivors, dis- by subtracting the OASDHI tax estimates borri the corn- from 1979. 'rhis rise reflects an increase in the 1040A were S44.4 billion, including interest, av- ability and hospital insurance (OASDHI) taxes on bined totals reported. social security tax rate from 12.1 to 12.26 per- eraging $614 compared to an average $518 and salaries. similarly, collections of individual wages tax not withheld am combined with OASDHI tax.incomeon I Includes presidential Election Campaign Fund amount- cent on Jan. 1, 1979, and an increase in the paid to 67.3 million individual taxpayers in 1979. sell-erriployment income. The amount of 0ASDHIsa. Ing to $35,933,816. earnings base from $17,700 in 1978 to $22,900 Refunds of $8.1 billion were made to 560,000 collections ilth- is based on estimates made by the - Includes presidential Election Campaign Fund amount. in 1979 and to $25,900 in 1980. corporate taxpayers, while refunds of employ- secretary of the Treasury pursuant to the provisions of Ing to $38.831.653. menl, excise, estate and gift, railroad retirement and FUTA taxes totaled $1.5 billion. 13 12

Issued $26.1 million of advance EIC has been paid out Flow of Returns Filed and Refunds and Individual Income Tax * by employers reported on 39,300 employ- (Cumulative number in thousands) merit tax returns. Jan Fab Mar Apr May June Employers claimed $582 million on 286,000 re- 1979 turns for the targeted-jobs credit in 1980. This Returns Filed credit replaced the new-jobs credit and is de- 9,758 35,842 53,259 86,431 87,951 89,232 signed to encourage employment of specific Number groups. 10.9 40.2 59~7 96.9 98.6 100 Percent This year taxpayers claimed $478 million in Refunds Issued credits on 4.8 million returns for energy conser- 13,139 34,074 53,914 62,761 64,307 vation and renewable energy source expendi- Number 1,399 tures made on their residences. This credit was Percent 2.2 20.4 53.0 83.8 97.6 100 provided by the Energy Tax Act of 1978. Another tax credit of the Energy Tax Act of 1978 is the business energy investment tax credit Returns Filed (BEITC). The BEITC is refundable and can result Number 9,731 38,250 55.827 88,769 89,981 91,432 in a refund in excess of tax liability based upon 98.4 , 100 investments in solar and wind energy property Percent 10.6 41.8 61.1 97.1 placed in service between Sept. 30, 1978, and Refunds Issued Dec. 31, 1979. This year taxpayers were al- 67,353 69,028 low~di $3.5 million to satisfy their current-year Number 986 13,190 35,439 56,408 tax ability and $2.3 million in excess of their Percent 1.4 19.1 51.3 81.7 97.6 100 current-year tax liability.

- Returns processed by National C-put., center and refunds scheduled for issuance by Rg,.nal Disbursing Presidential Election Campaign Fund Forno I D40 and 1040A. Centers Include only This year 25.3 million individual income tax returns had designations for the Presidential Elec- lion Campaign Fund - 27.4 percent of the re- The Tax Dollar -- turns processed, Designations amounted to Where it Came From Penalties $38.8 million compared to $35.9 million designated in 1979 on Gross Collections (Net Collections) Under law the IRS levies penalties such as those 23.2 million individual tax re- for failure to pay, paying with bad checks, filing turns, or 25.8 percent of those processed. The inEwsEEFEEEin Id late or committing negligence and fraud. In cumulative amount credited to the fund since 1980 the IRS assessed 20 million penalties for a 1972 is $246.2 million. total of $2.1 billion. For details see Statistical Ta- ble 14. Combined Annual Wage Reporting Combined annual wage reporting (CAWR) is a Tax Credits system developed to reduce the reponing bur- This year $775 million in child-care credits den for employers while still satisfying the re- available to working parents meeting certain re- porling requirements of both the IRS and the So- quirements, were claimed on 3.7 million returns. cial Security Administration (SSA). This reporting system became effective with all wages paid Earned income credit (EIC) of $2 billion was after Dec. 31, 11977, for domestic employers and claimed by 7.1 million low-income taxpayers after Dec. 31 , 978, lor employers in U.S. Pos- who maintain a home for themselves and at sessions and Puerto Rico. Under CAWR, Sched- least one dependent. The Revenue Act of 1978 ule A, which required a detailed listing of em- provided for advance payment of EIC in employ- ployee information, is no longer filed with em- ee paychecks to give employees the option of ployment tax Forms 941, 942 or 943, and the ___F_ ____1 receiving the credit amount each payday rather Employment 24.7 (27.4) than waiting until the end of the tax year to get refunds from filing of individual income tax re- Corporation 13.9 (13.9) turns. Since the program began on July 1, 1979, Excise 4.7 (5.2) Individual 55.4 (52.1) Estate & Gift 1.3 (1.4) 14 is

Form W-2 was redesigned to include the Federal Processing Insurance Contributions Act (FICA) information Pipeline formerly filed on Schedule A. The Forms W-2 are filed with the SSA, which processes the information and supplies it to the IRS. During 1980 the IRS began a reconciliation between the employment tax returns such as Forms 941 and 942 and the wage returns such as Forms W-2 filed by employers for calendar year 1978 to insure that the correct tax has been paid over to the government and that am- Ployees receive the correct FICA coverage with SSA.

R turns are delivered to the Envelopes are opened and Returns are sorted by type of Windfall Profit Tax RZional Service Centers. counted. return. The Crude Oil Windfall Profit Tax Act of 1980 imposed an excise tax on crude oil and certain natural gas liquids produced from domestic oil and gas wells after March 1, 1980. Afthough the windfall profit tax is imposed upon the producer the law provides that the first pur- chaser of domestic crude oil generally is liable for deducting and withholding tax from the purchase price, depositing the tax and filing quarterly tax returns. This tax affects almost every taxpayer who owns any kind of an interest in an oil or gas well, including royalty owners, working Tax returns and accompanying Returns are edited and coded for Tax return information is placed on interest owners and operators, as well as multi- checks ans compared. computer processing. magnetic tape for computer national oil companies. processing. Temporary regulations, dealing primarily with the administrative provisions of the law, were available the day of its enactment. Revenue rulings will be published, as necessary, to provide clarification and one revenue ruling already has been issued involving the severance tax adjust- ment. The amount reported for the windfall profit tax in 1980 was $3.1 billion and the first windfall tax examinations were begun in the fall of 1980. IRS computers check returns for Tapes are sent to the National Tapes of Refunds are sent to the A multifunctional IRS task force has been mathematical accuracy. Computer Center for Account Treasury Department Disbursing formed to identify problems and recommend so- Posting and Settlement. Center for issuance of checks lutions for the implementation of what is project- directly to taxpayers. ed to be a 1 0-year program to collect $227 billion enforcing this tax. Once a tax return reaches one at ten IRS While many parts of the pipeline shown here Service Centers, it travels through a series of are automated for faster processing and faster processing steps known as 'the pipeline.* refunds, people are involved every step of the way. is Assisting the Taxpayer 17

Write, Call or Walk In telephone system that allows taxpayers from throughout the United States to call IRS for in- This year the IRS received about 102,000 writ- formation without paying long-distance charges. ten, 35 million telephone and 8 million walk-in In 1979 18.7 million of the telephone calls were inquiries from taxpayers requesting information made t~rough the toll-free system. about the tax system, their rights and obligations under it and the tax benefits available. In 1979 Over 80 percent of these telephone calls are an- the IRS responded to 96,000 written, 33 million swered by froni-line assisters. Referrals requir- telephone and 8 million walk-in inquiries. ing computer research or more advanced tech- More than 59 percent of this year's 43.1 million nical assistance are resolved by IRS employees who have received specialized training in these inquiries, 25.6 million requests for assistance, areas. This year the IRS answered over 3.7 mil- occurred between January 1 and April 25 over 20 million phone calls, more than 5 million- lion account referrals, including inquiries on re- walk-in inquiries funds, notices received and tax payments. In ad- and over 36,000 items of corre- dition, employees answered about 2.8 million spondence. A quality check of 243,000 tele- technical referrals, responding to questions on phone responses and returns prepared by corporation tax assisters during this same period found an IRSover- law, estate taxes, employment all accuracy rate taxes and a wide variety of other complex inqui- of over 97 percent. ries. Toll-Free Telephone Assistance Teletypewriter equipment with a nationwide toll- free number giving hearing-impaired taxpayers Over 97 percent - 19.8 million - of the tele- access to telephone assistance was extended to phone calls received during the 1980 tax return Adaska, Hawaii, Puerto Rico and the Virgin filing period were made through the toll-free Islands in 1980. 19 iu

Forms and Publications The IRS contracted with an outside firm Iasi year to revise and test the individual lax forms. Proto- type forms have been developed and limited tests were conducled at various siles around the country. After the results of these tests are analyzed, large-scale testing with revised forms will begin early in 1981. Public hearings held in Atlanta, Omaha, Seattle and Burlington resulted in many suggestions on how to simplify the federal tax return forms and instructions and after studying the suggestions the IRS has adopted a number of them. In addition, volunteers in San Francisco, Des Moines and Jacksonville tested the Form 1040 individual income tax returns and related schedules. The tests will assist IRS in locating and modify- Ing areas of particular difficulty on the forms. Computerized readability analyses also are being used to identity parts of the tax forms instructions that can be made easier to read. The IRS distributed many taxpayer information J 1~~ Vill'. publications free of charge including 2.8 million copies of Your Federal Income Tax, 1A million Informing Taxpayers Walk-in Service Educating Taxpayers copies of the Tax Guide for Small Business, 805.000-copies of the Farmer's Tax Guide and Major television and radio networks and local Walk-in taxpayer assistance was offered at The Understanding Taxes and Fundamentals of 71,500 copies of the Tax Guide for Commercial broadcasters provided free airtime having an es- inner-city, business district, suburban and rural Tax Preparation programs reached more than 5 Fishermen. Additional tax materials were fur- timated worth of $5.5 million for this year's pub- locations with 702 permanent offices and 142 million high school and college students last nished to 7.1 million taxpayers, 580,000 tax lic service spot announcements giving taxpayers temporary offices set up especially for the filing year. IRS-sponsored workshops for nearly practitioners and 436,500 employers. The IRS information on provisions of the tax law and period. In addition, over 37,000 banks and Post- 43,000 small business owners helped make tax- publishes more than 90 booklets - three in guidance on filing tax returns properly. a] Service locations helped distribute more than payers aware of their tax rights and responsibili- Spanish - on specific tax topics. 290 million tax forms and instructions. ties. In addition, 538 institutes were held for tax A new film, "A Right Good Thing" was pro- practitioners. duced to familiarize older Americans with tax The IRS provided foreign language assistance at counseling for the elderly and other available as- 204 of its 844 taxpayer service offices. Spanish Through the volunteer income tax assistance sistance in preparing income tax returns. language assistance was offered at 154 of these program (VITA) the IRS recruits, trains and sup- offices by 600 employees, while 108 offices and ports volunteers who prepare tax returns for Specialized media receiving IRS information this 431 employees assisted in other languages. low-income, nonEnglish-speaking and military year included newspapers and magazines read taxpayers. This year more than 355,000 federal by farmers and fishermen, working parents, old- income tax returns were prepared by almost er Americans, barbers, beauticians and service Disaster Assistance 55,000 volunteers, In 1980, as a result of a new employees of hotels and restaurants, The infor- In 1980 the IRS provided help in preparing program of tax counseling for the elderly, the mation covered special tax responsibilities and amended returns and casualty loss claims and IRS entered into agreements with nonprofit or- benefits of particular interest to these taxpayer in getting refunds taster to taxpayers in 23 states ganizations to provide free tax help to individuals groups. and 138 counties affected by floods, hurricanes, age 60 and over, with volunteers reimbursed for The IRS issued more than 7,000 news releases tornadoes and the eruption of Mount St. Helens. out-of-pocket expenses. and responded to nearly 20,000 media inquiries through the National Office and 75 field ioca- tions. PE 21

Claritying Notices Approximately 8,000 disclosures of tax information were made to the Department of Justice; In response to concern about the clarity of IRS 188,000 to federal, state and local child support computer-generated correspondence, a special enforcement agencies and 71 million to slate tax efforl began in July 1980 to review, revise and agencies under specific disclosure provisions in reformat all such notices. The goal of this the Internal Revenue Code. project is to make it easier for taxpayers to understand why they have received notices and Effective June 1, 1980, authority for disclosure what action, it any, they need to take in re- of tax returns and return information to federal sponse. The IRS plans to begin using revised agencies for use in nontax criminal investiga- notices in January 1981. Taxpayer reaction to tions was delegated to field offices to improve the notices will be tested and feedback received the timeliness of disclosure services. will be used in considering future notice revisions. The IRS has agreements with 94 state tax agencies for reciprocal exchange of confidential in- Making Information Available formation. This federal-state exchange program increases tax revenues, reduces duplicate ex- During calendar year 1979 the IRS processed aminations and increases taxpayer compliance 9,249 requests for IRS documents made under for both state tax agencies and the IRS. This the Freedcm of Information Act - an increase year the IRS approved implementation agree- of 22 percent over 19.78. Of this total, 5,716 ments with 63 state tax agencies lo,identify were granted in full, 1,097 were granted in part more precisely the information to be exchanged and 2,436 were either incomplete requests or and limit disclosures to information that is need- requests denied in full. The National Office read- ed and used. ing room serviced aproximately 31,000 addition- The IRS and the California Franchise Tax Board al requests for documents available to the publ- this year developed procedures that will elimi- Helping Other Countries through normal procedures. In October 1979 ic, including returns of exempt organizations, nate duplicate paper processing of information the program was expanded to include all ten IRS pension plans and private letter rulings - a 17 In 1963 the IRS, in cooperati6n with the Agency service centers. percent increase over the prior year. returns filed. Each agency will transcribe a sepa- for International Development (AID), initiated a rate group of documents and exchange magnet- program to assist foreign governments in mod- Late in 1979 the IRS established a Tixpayer Under the Privacy Act of 1974, individuals made ic tape extracts. This cooperative effort will re- ernizing their tax administration systems. During Ombudsman in the Office of the Commissioner 371 requests for access to records about them- sult in almost 100 percent transcription of intor- the past 17 years IRS advisers have been as- to administer the nationwide problem resolution selves and 20 requests to amend or correct mation returns filed by California residents ior signed to thirty-eight countries, the Caribbean program, represent taxpayer interests and con- these records. The IRS permitted full access in use in document matching, The IRS is continual- Community and the Central American Secretari- cerns within the IRS decision-making process, 185 of these requests and granted partial acc- ly exploring methods of exchanging information at for Economic Integration for periods from two review IRS policies and procedures for possible ess in 82. The remaining 124 were either incom- by magnetic tape to improve utilization of state weeks to several years. adverse effects on taxpayers, propose ideas on plete or denied in full. and federal tax administration resources. tax administration that will benefit taxpayers and In 1980 the IRS provided long-term assistance represent taxpayer views in the design of lax to Egypt, Liberia and Sierra Leone, while forms and instructions. projects were completed in El Salvador, the Northern Mariana Islands and the Trust Territo- The Taxpayer Ombudsman is not intended as a ries of the Pacific Islands. Short-term projects substitute for existing appeals procedures, nor is were conducted in Jordan and Trinidad and To- it meant to be another level of appeals for decid- bago, ing substantive tax disputes, although advice on appeal rights is provided to taxpayers and com- This year 405 officials from 74 countries visited plaints about appeals procedures are heard and the IRS for orientation and observation acted upon by PRP offices. grams. Since 1963 over 5,750 visitors pro- 134 countries have participated in these programs,from This year 208,000 individual taxpayer problems The IRS also presented a seven-week INTAX were resolved through PRP. If a case cannot be seminar in tax administration for tax officials resolved within five workdays the taxpayer is from six countries and provided a guest speaker contacted, advised of the status of the case and at a seminar on computer-assisted audits spon- provided the name and telephone number of the sored by the Brazilian Ministry of Finance employee responsible for resolution. PRP also school. analyzes the underlying causes of taxpayer problems so that organizational, procedural or systemic problems can be identified and cor- Problem Resolution rected. The problem resolution program (PRP) was established nationwide in 1977 to bring special attention to persistent taxpayer problems and complaints not promptly or properly resolved 22 14th CIAT 23 General Assembly

Commissioner of Internal Revenue Jerome "Fundamental Tax Audit Considerations," and Kurtz was elected President of the during the week technical papers were ~nter-American Center of Tax Administrators presented on various aspects of an audit CIAT) during its 14th General Assembly held program. Deputy Commissioner William E. in Washington, D. C., June 22-27, 1980. This Williams discussed unreported income and was the first time a CIAT General Assembly U.S. tax administration and Assistant had been held in the United States. CIAT was Commissioner Joseph T Davis spoke on founded in 1967 to provide a forum for the resources support. exchange of information experience and Deputy Secretary and Mrs. Carswell hosted a technical assistance in tax administration in reception for delegates, observers and invited the Western Hemisphere. guests at the Hall of the Americas in the Organization of American States building Deputy Secretary of the Treasury Robert during the week-long event. Carswell welcomed the more than 200 delegates, observers and special guests at On the final day Commissioner and Mrs. Kurtz the opening ceremony ~Conrmissioner Kurtz hosted a dinner for the delegates at the followed with the theme address, historic Gunston Hall Plantation at Lorton, Va.

_!Z:--- ___ii,

Tax administrators elected to the 1980 CIAT Executive Council were (left to fight): Manuel Lopez Acosta, Venezuela, Second Councilor; Edgardo Gutierrez Lopez, Coale Rica. First Councilor; Max Rodriguez Facul, Col.moia. First Alternate C.unc" G"ill,ma. Prieto Forum, Mexico, Third Councilor: Commission., Kuri parst, Fernando Revere Alvarez. P,eaidX:~He Dominican Republic, Fourth Councilor; Alfix iti, Second Alternate Councilor, and Ricardo Cossio, Argentina, Fifth Councilor. 25 24 Enforcing the Law

Examinations sues that can be handled through correspondence with the taxpayer. During the year During 1980 the IRS initiated a new method to 533,046 returns were verified or corrected group individual returns for examination selec- through correspondence by the service centers, tion purposes. Classes, which are groupings of including 351,029 resulting from the matching returns by income levels, are used for scoring of information return documents. This total fig- returns in the discriminant function system (DIF) ure is up 36,612 returns, or 7 percent, over - a computer method used to select individual 1979, Recommended additional tax and penal- returns for examination using mathematical for- ties totaled $123 million, compared to $119.2 mulas to measure the probability of error - million in 1979. planning workload and staffing and monitoring results of examinations. Total positive income Statistical Tables 8 and 9 show exarnination ac- (TPI) - the sum of all positive income values tivity for 1980 and 1979. appearing on a return, with losses treated as zero - now is being used to class nonbusiness Large Corporations returns and total gross receipts (TGR) to group business returns. TPI replaces the previously The coordinated examination program (CEP), used adjusted gross income (AGI) method of which covered financial institutions and utilities classifying returns. whose gross assets exceed $1 billion and other corporations whose gross assets exceed $250 million, was restructured in 1980 to a two-tiered Examination and Correction Results program and new case identification criteria The IRS examined 2,179,297 returns in 1980 of were implemented. The two-tiered program in- which 1,984,224 returns were examined in dis-' volves a national CEP and a newly established trict offices or at the taxpayer's residence regional CEP, with the most complicated cases place of business by tax auditors and revenueor assigned to the national program. The new, agents - a decrease of 89,472 returns fromex_ more sophisticated identification criteria consid- 1979, The remaining 195,073 returns were er factors such as asset size, multiple entities, amined in service centers, a decrease of 4,834 multiple industries, complexities requiring spe- from 1979. cialists, gross receipts and application of resources. Revenue agents examined 615,671 returns at of taxpayer residences or places of business - At the end 1980 there were 937 cases in the down 63,631 returns or 9 percent from last year. national CEP and 567 cases in the regional CEP Tax auditors examined 1,368,553 returns using with a combined average number of open years office audit procedures, down 25,841 returns or per case of 2.8 compared to a three-year objec- 2 percent from the previous year. tive, Recommended tax deficiencies and penalties totaled $4.35 billion during 1980 compared Examination coverage of income, estate and gift to $2.7 billion for 1979. tax returns was 2.12 percent compared to 2.24 percent in 1979. In 1980 the industry specialization program included 13 designated industries, encompassing The IRS examination program resulted in recom- 483 of the national CEP cases. mendations for additional tax and penalties of $9.4 billion - the largest amount ever - com- In the computer-assisted -audit program the IRS pared to $7.1 billion in 1979. Of this total, indi- uses the skills of 174 specialists trained in com- vidual returns accounted for $2 billion, corpo- puter systems hardware, computer program lan- rate returns for $6 billion, fiduciary returns for guages and examination techniques to reduce $33.9 million, estate and gift tax returns for $1.1 the cost of investigations, examinations and billion and employment and excise returns for compliance projects. Engineer agents handled $172 million. 1 2,459 requests for technical assistance - up The examination program also disclosedi overas- 10 percent over last year. IRS has 319 field en- sessments on 130,132 returns resulting n re- gineers located in 26 groups in 17 key districts. funds of $376 million, compared to 133,059 returns with refunds of $328 million in 1979. In addition to the district office examination Pro- gram, service centers also resolve or verity is- 27

Revenue Agents and Tax Auditors (District Examination Divisions) Tax Shelters Beginning July 1980, a summary of information returns and currency transaction records filed The tax shelter program was expanded and im- Returns Examined for 1979 is being associated with 1979 individu- proved in 1980. At the end of the year 193,933 al income tax returns for use in the selection by Type of Tax returns with tax shelter issues were in the exami- and examination of these returns. nation process - an increase of 11,202 returns over 1979. Additional areas of potential noncompliance Estate & Gift 1.9% continue to be identified and tested to determine A separate staff was established in January the extent of noncompliance. Corporations 6.7% 1980 in our Technical organization to accelerate the publication of rulings and furnishing of tech- All other 8.3% nical advice and assistance to IRS offices on tax Ouallty Review shelter issues. During 1980 thirteen tax shelter To assure impartial and uniform tax administra- revenue rulings were issued and over 100 re- tion in resolving issues and making quality ex- quests for technical advice and assistance from ami nations, new standards and guidelines have the Examination Division were processed. been developed for selecting, examining and re- Individual & viewing returns. A system is also being designed Fiduciary 83.1% New procedures were developed to identify abusive shelter cases - through information-gath- to measure and report the quality of completed ering projects, utilization of information from audits. other agencies and greater use of "John Doe" summonses - and to expedite the appeals pro- Appeals cess. Under the single level of appeal begun in calen- With the addition of the commodities and real clar year 1978, and Revenue Procedure 78-9, estate shelter segments this year, the tax shelter the Appeals Division handled more cases than in handbook developed for examiners now in- prior years. Conferences were offered at all cludes detailed examination techniques for sev- locations where previously held under the two- en of the most common shelters. Tax shelter level system, In cases docketed with the U.S. trai ning materials for examiners has been re- Tax Court, 60 percent of Appeals settlements vised and updated and a separate course has occurred within four months and 88 percent been developed on commodities. within six months. The number of cases received in Appeals con- W-4 Program tinued to increase, from 48,a45 cases last year Dollar Recommendations (Millions) During 1980 IRS developed a program to review to 53,467 during the current year. Docketed by Type of Tax and follow up on questionable Forms W-4, Em- cases - those involving taxpayers who have ployee's Withholding Allowance Certificate, to filed petitions with the U.S. Tax Court - in- check abuses by taxpayers who file incorrect creased 7 percent and there was a 10 percent Forms W-4 with employers to avoid withholding incre se in nondocketed work. Small cases con- Estate & Gift 12.2% of income tax from wages, tinue to be a large part of Appeals work with over 56 percent of receipts in 1980 involving Amendments to the Employment Tax Regula- cases with deficiencies of less than $2,500, Corporation 64.1% tions, issued March 11, 1980, require employers compared to 54 percent in 1979. Disposals also to submit certain Forms W-4 to service centers, increased from 46,535 cases in 1979 to 49,971 starting with their employment tax returns due in in 1980. July 1980. If the IRS determines a Form W-4 to be incorrect the employee and employer will be The majority of cases handled in Appeals were notified that the Form W-4 is not acceptable. settled with the taxpayer without litigation. In The employer then must withhold as it the em- nondocketed cases, 85 percent were closed by All Other 2.7% ployee were single, claiming no withholding al- agreement, an increase from 82 percent, the re- lowances, until the employer receives a new vised agreement rate for 1979. In docketed Form W-4 from the employee. Compliance with cases, 61 percent were agreed in Appeals com- the new regulations will be monitored by district pared to 57 percent, as revised for 1979. The examination divisions during income and em- combined agreement rate for Appeals and dis- ployment tax examinations. trict counsel including those cases dismissed by the Tax Court, was 90 percent. Individual & Unreported Income Fiduciary 21.0% The IRS is attempting to identity, examine and investigate areas of high underreporling and nonreporting of income. 29

Ending inventory in Appeals increased from Prosecutions were recommended in 2,267 in- 34,996 cases in 1979 to 36,047 at the end of vestigalions out Results of Direct Enforcement on Returns Compliance of the 8,077 completed. Grand Delinquent Accounts and Returns this year. The potential tax liability represented juries indicted or U.S. Attorneys filed informa- New programs dealing with child care and agri- by the cases in inventory increased from $7.2 tions on 1,832 taxpayers. Prosection was suc- 1979 1980 cultural labor were begun during 1980 after billion to $8.7 billion. cessfully completed in 1,601 cases. Delinquent Taxes studies showed significant employment tax non- A taxpayer whose informal request for abate- Taxpayers entered guilty pleas in 1,244 cases, Collected - compliance in these areas. ment of certain penalty assessments is denied 93 pleaded nolo contendere and 264 were con- From Delinquent The child care program resulted in several thou- by service center or district office personnel may ,ActLd after trial. Acquittals and disrnssals to- Accounts $3.316.1 $3,995.9 sand investigations for nontiling of Form 942, also request an Appeals conference. During taled 80 and 193, respectively. Of the 1,590 tax- From Notices $1,584.1 $2,003.7 Employer's Quarterly Return for Household Em- 1980 Appeals disposed of 8,338 penalty ap- payers sentenced during the year, 740, or 46.5 ployees, by taxpayers who listed large amounts peals compared to 7,200 in 1979. Of the $17.3 percent, received jail sentences. Delinquent Returns Secured2 for in-home child care on their income tax re- million in penalties protested, $9,3 million was Out of these totals, the special enforcement pro- turns. abated as a result of appeals. By Collection Division 1.324.2 1,362.4 gram accounted for 1,302 completed investiga- By Examination Division 5B.2 48.1 The agricultural labor program also resulted in tions, 455 prosection recommendations and 257 several thousand investigations for nonfiling of Criminal Investigation convictions or pleas of guilty to tax charges. Additional Tax, Penalty and Interest Asse Forms 943, Employer's Annual Tax Return for A total of 7,114 investigations were initiated in on Delinquent Returns Agricultural Employees, by taxpayers who the general and special enforcement programs Cooperation With Others (Nelt of prepaid credits) claimed large amounts for hired labor on Sched- of the Criminal Investigation Division in 1980. ule F, Farm Income and Expenses. The Criminal Investigation Division participates By Collection Division $1,379.1 $1,753.4 The general enforcement program provides for BY Examination Division $69.0 $55.6 balanced criminal tax enforcement and geo- in the federal strike force program against organized crime. Strike forces are located in 13 millions -thi-nds Bankruptcy graphical and occupational coverage of the major cities and are coordinated by Department of population involving various types of alleged vio- Returns compliance programs identified poten- The Bankruptcy Reform Act of 1978, which be- Justice attorneys. Investigations of high-level lations of the tax laws. Other enforcement efforts tial nonfilers and resulted in securing 55,469 re- came effective on Oct. 1, 1979, had a substan- in this program include the prosecution narcotics financiers and traffickers are coordi- tial impact on IRS collection operations. The of indi- nated with the Drug turns with $17.9 million in additional taxes as- viduals who file multiple claims for tax refunds, Enforcement Administra- new law requires special handling of tax returns. tion. sessed. Statistical Table 13 shows results lor illegally refuse to pay their taxes through various 1980. No tax may be assessed for periods ending be- tax protests and promote the use of fraudulent The Division also provides training in the use of fore the bankruptcy proceeding began, until an automatic stay of assessment period has ex- tax shelters. financial investigative techniques against "white Service Center collar" crime ,to investigators for state Collection pired. To prevent assessment, a new computer In the special enforcement program, individuals crime commissions U.S. probation officers, slate se A service center collection activity, which was program was designed to block the normal pro. who derive income from certain illegal activities cessing of tax returns from taxpayers who have and violate the tax laws are identified and inves- curities commissions, U.S. Air Force Office of developed and tested over several years, was Special Investigations, state alcohol and bever- operalional in all centers during 1980. This ac- declared bankruptcy. This allows the IRS to tigated. This program also includes projects monitor the court proceeding and then assess such as the federal strike force program against age control divisions, state police and other fed- tivity makes correspondence and telephone eral, state and local law enforcement the tax when legally permissible. organized crime, the high-level narcotics finan- agencies. contacts wilh taxpayers to resolve tax deli n- ciers and traffickers project, wagering tax en- quencies and, under certain circumstances, forcement and other efforts against racketeers, Illegal Tax Protesters makes arrangements with taxpayers to pay lia- Offers In Compromise bilities in installments, These service center col- The offer-in-compromise procedure, authorized Results of Criminal Action The IRS established a comprehensive program lection actions are being evaluated for efficiency in January 1979 to identify illegal tax protester and timeliness. since 1831 to compromise liabilities owed to the In Tax Fraud Cases schemes and to take appropriate action through United States, is used to bring about maximum examination, criminal investigation and collec- collection in situations where collection or the Number of Nonfiler Identification Defendants tion programs to assure compliance with the tax correctness of a liability is in doubt. The Collec- tion Division processed 1,763 offers in compro- Action 1979 1980 laws. New procedures for early identification and contact of income tax nonfilers were established in m se in 1980. Plea of Guilty or As of June 30, 1980, over 9,000 illegal tax pro- ,esterff~ returns were under examination. During 1980 and case selection criteria were refined to nolo contenders 1,270 1,337 a first nine months of 1980, 135 indictments or improve the quality of investigations and mini- Child Support Obligations mize contacts with persons not required to file. Convicted after trial 342 264 informations were returned on illegal tax protest- The law requires the IRS to collect delinquent ers and 98 were convicted. Identification of nonfilers of business returns Acquitted 86 80 was improved through child support payments on behalf of certain matching information state agencies. In documents. the past IRS collection was Nol-prossed or dismissed 183 193 Collection used for cases in which a court-ordered child Total Disposals 1,881 1,874 support obligation was delinquent and assign- During 1980 the IRS disposed of 2.3 million de- Workload Control ment of support rights had been extended as a Indictments & Informations 1,820 1,832 linquent accounts. Some $6 billion in overdue condition of eligibility of aid to families with de- taxes were collected. 01 that sum, $2 billion Tax delinquencies were analyzed during 1980 to Percentage of Jail Sentences find ways to cope with the increasing collection pendent children (AFDC). This year a change in were collected in response to computer notices the law extended the responsibility of the IRS to to Total Sentenced 44.5 46.5 workload. For example, certain delinquencies sent to taxpayers and $4 billion were collected collect child support for nonAFDC families. on delinquent accounts. Approximately 1.4 mil- were earmarked to receive additional notices lion delinquent tax returns were secured, involv- and the timing between notices was chanZ to ing $1.8 billion in additional assessments. . increase the possibility of collection before a field contact becomes necessary. KE 31

Information Returns Program returns. Also, of the information returns submitted this year on paper, approximately 25 percent In 1980, 547 million information documents will be matched compared to 20 percent last were received. More than 358 million informa- year. tion returns were received by the IRS from businesses and organizations reporting interest, divi- A new form, 1099 NEC, was provided this year dends and other payments. Over 303 million of for persons in a trade or business to report fees, these were submitted on magnetic media. The commissions or other compensation totaling Social Security Administration, which under more than $600 for the year paid to anyone who combined annual wage reporting receives and is not an employee. processes Forms W-2, received information In 1980 the IRS notified over 2.1 million taxpay- from over 189 million Forms W-2. ers of potential discrepancies between income The IRS received over 100 million pre-1 974 Se- reported on their tax returns and income reported on information ries E savings bonds redeemed in 1980 from the returns. Also, 1.4 million tax- Bureau of Public Debt for inclusion in the infor- payers were sent notices of apparent failure to file tax returns mation returns program. These bonds date back based on information returns. to 1941. Since 1973, U.S. government bond re- This year the IRS began using information re- demptions have been reported to the IRS on turns in selecting income tax returns for exami- magnetic media, nation and for use in connection with actual ex- The IRS will continue to match most information aminations, Next year informalion'documents returns submitted on magnetic media to verify also will be used to locate and contact taxpayers who filed income that correct amounts are reported on taxpayers' tax returns in previous years but failed to do so for the current year, Information Returns Reported on Magnetic Media International Operations Tax Documents Reporting To conduct the business of the IRS outside the Year (thousands) Entities territorial boundaries of the United States, the Sao PaL110 Johannesburg 1967 36,492 1,048 Office of International Operations (010) has foreign posts in key cities around the world. Be- 1968 47,686 2,426 cause of the steady growth of the U.S. citizen U.S. Taxpayers Residing Overseas overseas. During this past year 010 examined 1969 population and business investments in foreign (in thousands) the first returns filed since the change and the 58.951 2,963 countries, this year the IRS increased the num- effect of this legislation is being evaluated for 1970 68,300 4,637 ber of posts from 14 to 16, adding offices in Treasury and Congress. HIM 1971 91,449 8,504 Nassau and Vancouver. The Tehran post, which was closed in January 1979, this year was relo- Assisting Taxpayers Abroad 1972 115,008 12,758 rated to Jidda, Saudi Arabia. 1973 144,533 13,128 Foreign posts are headed by revenue service LKM Approximately 150,000 taxpayers visited offices representatives (RSRs) who manage in over 120 cities in 68 countries seeking tax as- 1974- 185,554 21,862 the exami- sistance and 1,800 taxpayers attended 84 tax nation, collection, and taxpayer service programs 1975- 216,839 32,486 at the posts in addition to conducting special- seminars sponsored by IRS. Seven military tax ized investigations in support of U.S. domestic ULM workshops were conducted attracting over 550 1976* 248.106 35,013 participants who in turn helped thousands of examination and criminal cases. Beyond this, armed service personnel overseas prepare their 1977* 275,423 39,980 RSRs serve as liaisons with foreign tax authori- ties in both treaty and nontreaty countries. own tax returns. 1978- "269,936 38,417 1979* 303,339 43,840 . Compliance Overseas Tax Treaties :Dot revised from previous annual report. In 1980 over 16,000 returns were examined and The U.S. has income tax treaties with forty Cal:hdar year data. Dam for 1973 and before covers countries and estate tax treaties with thirteen, the 6 month period January through June, nearly $250 million in additional tax and penalties were recommended. designed to eliminate double taxation, remove Note: For 1978 and subsequent years the volumes While about 20 percent tax barriers to shown do cot include Form W-2 and W-2P Processed of these returns were examined overseas, most trade and investment and curb tax by the Social Secumy Administration under the con, returns, including those of foreign entities doing avoidance. pired annual wage reporting system, business in the U,S. or U.S. business controlled by foreign interests, are examined in the U.S. In October 1978 Congress enacted sweeping changes for the taxation of U.S. citizens working 1960 1965 1970 1975 1980 33 32

representatives met with treaty part- Employee Plans During the year 7 regulations and 32 revenue On May 5th and June 6th. 1980, the District In 1980 IRS rulings and procedures were issued, as well as Court for the District of Columbia in the case of ners throughout the world to develop the frame- measurement program 4,621 National exchanges of information and A taxpayer compliance Office opinion letters, on master Green v. Miller supplemented and modified a work for improved (TCMP) for employee benefit plan returns was and prototype plans dealing with Keogh plans, 1971 injunction prohibiting the IRS from recog- for the resolution of double taxation cases. By 1980 to examine random samples corporate plans and information under the provisions of started during individual retirement ac- nizing racially discriminatory schools as tax-ex- exchanging of returns to ensure continued compliance with counts and annuities, In 1979 the IRS completed empt under IRC 501(c)(3). Under the court or- tax treaties, the IRS enhances worldwide compli- instances of the Employee Retirement Income Security Act.of a review of pre-ERISA revenue rulings for modi- der the IRS is prohibited from recognizing the ance with U.S. tax laws, mitigates (ERISA). Data gathered during the exami- fication, restatement, obsolescence taxation and assists U.S. businesses in 1974 or revoca- tax exempt status of private schools in the State double nation of these returns will be used for planning tion and during the current year began making of Mississippi that have been adjudicated dis- securing uniform treatment of their international programs, improving the se- continued to work closely future examination public the results of this review. criminatory or have been formed or expanded at transactions. We also lection of returns for examination and identifying with the Puerto Rican Department of Treasury Advance determination letters are issued by IRS the time of public school desegregation and needed changes to the Forms 5500 series re- cannot demonstrate that they are not racially and the Virgin Island's Department of Finance to instructions. Under the program, on the qualification of pension, profit-sharing taxation cases and to exchange turns and and other employee benefit plans, During the discriminatory. resolve double which began in January 1980, approximately taxpayer return information. year 168,974 determination letters were issued The order further requires that IRS survey all pri. 18,000 Forms 5500 and 5500C returns with on corporate and self-employed beginning in 1978 will be examined. plans - an in- vate schools in Mississippi to identify those that plan years crease of 20 percent over 1979. Also, 19,378 were created or expanded at the time of racial An ERISA noncompliance enforcement program plans were examined to determine the qualifica- desegregation of the public schools. The IRS was established this year to bring into compli- tion of plans in operation, to verity the employ- must then review facts andcircumstances to de- ance those employee benefit plans that received ers' allowable deduction for contributions to termine if these schools discriminate in admis- favorable pre- or post-ERISA det~rmination let- plans and to assure that the rights and benefits sions, employment, scholarships, loan pro- ters but failed to comply timely with the law, final of plan participants are protected. grams, athletic and extracurricular programs. By regulations or other ERISA requirements. The terms of the order the IRS must report to the program is designed to protect the rights and Exempt Organizations Court in six months and then on each July 1 for benefits of plan participants by providing limited the next three years. relief from sanctions for those plans that volun- During 1980 the Exempt Organizations activity with ERISA and restore issued or revised 8 With respect to schools outside of Mississippi, tarily agree to comply regulations, 35 revenue rul- the IRS was prohibited benefits to participants that were not provided ings and procedures, 374 technical advice * by sections 103 and 615 because of failure to comply timely with ERISA. memorandums, 19 announcements and 4 pubfi- of the Appropriations Act of 1980 from spending any funds during the fiscal year to carry out pro. this year concern- cations, and examined 23,807 exempt organiza- A revenue procedure issued tion returns. In addition, 52,699 applications, posed revenue procedures setting forth stan- ing simplified employee pension (SEP) plans dards similar to those required by the court or- rulings and reapplications and requests for rulings from or- gives guidance to sponsors seeking ganizations were acted on. der or to adopt new procedures that would opinion letters for prototype SEP plans. SEPs. cause the loss of tax exempt status. In these made possible by the Revenue Act of 1978, al- A total of 22,582 organizations exempt under schools the IRS is applying the procedures and low an employer to contribute annually up to the provisions of Internal Revenue Code sections examination guidelines in effect before Aug. 22, lesser of 15 percent of compensation or $7.500 501 (c)(3) through 501 (c)(8) have been identi- 1978, to each participating employee's individual re- fied to be examined under the taxpayer compli- tirement account or annuity (IRA). A model SEP ance measurement program (TCMP). Approxi- agreement - Form 5305-SEP - available now. mately 5,500 TCMP returns will be examined in is a qualified SEP with no further IRS approval each of the four fiscal years beginning Oct. 1. when an adopting employer executes it proper- 1980. ly. Examination guidelines were published to alert A post-review program was initiated to ensure examiners to various private benefit or inure- that all 17 key districts are uniformly applying ment problems that may exist in the operation of the law and IRS procedures when issuing deter- home health care organizations. The examina- mination letters on the qualification of plans. Un- tion coverage in this area increased from five to der this program determination letters issued on ran percent in 1980. the qualification of plans and the tax-exempt sta- The use of new guidelines that provide uniform tus of related trusts by key districts are subject procedures for identifying, investigating and ex- to selection for post review by the National Of- amining organizations employing questionable lice. claims of tax-exempt church status have assisted in identifying such organizations and resulted in successful litigation against many, 1 35 34 Managing the System

Research and Operations Analysis to determine compliance levels, tax consequences and the need for continued efforts in During 1980 the IRS revised its long-range plan- each area, These studies involve state income ning process to place greater emphasis on the tax refunds, gains on sales of personal resi- analysis and executive assessment of critical is- dences and sales of stocks with cost basis re- sues and problems. The new process, including duced by splits or nontaxable distributions. periodic executive issues conferences, a Ser- vicewde research plan and a strategic plan doc- Other studies dealt with deferred gains on in- ument, will be phased in during 1981. Also,~ this0 stallment sales, amortization of changes in ac- year the IRS established a permanent unrep rl- counting methods, recapture of certain deduc- ed income research group. tions on multifamily housing projects insured by the Departrpent of Housing and Urban Develop- ment and tracking amortization or depreciation on certified historic structures. Efforts also were begun to track certain other tax benefits, such as the once-in-a-lifetime exclusion on gains from the sale of a principal residence and special farm valuations for estate tax purposes, The IRS continued a study of the highway excise tax structure and different tax funding methods for the highway trust fund by sending questionnaires to IRS personnel engaged in the managemeni, examination and collection of taxes dedicated to this fund. Treasury delivered its first progress report on this study to Congress this year and the final report is due in April 1982.

Major Research Projects Taxpayer Compliance Measurement Throughout 1980 IRS information reporting pro- The taxpayer compliance measurement program grams were reviewed, a project was begun to (TCMP) is the basic IRS research activity for es- measure compliance in reporting nonemploy- timating the nature and extent of tax law compli- ment compensation on the newly established ance. The results are used to plan enforcement Form 1099-NEC and a study on the feasibility of programs, improve computer selection of re- extending information reporting to bearer instru- turns for examination, allocate IRS resources, ments continued. formulate taxpayer information programs and improve tax return forms and instructions. Following a two-year pilot study the IRS decided to phase in a program in which payers of non- wage income may satisfy both federal and state information reporting requirements by submit- ting a single magnetic tape of payments to the IRS that will, in turn, generate secondary tapes for state revenue agencies. This year, as provided by the Revenue Act of 1978, the IRS began a study to simplify all individual income tax forms and instructions working with private design and language consul- tants. The study provides for a preliminary report to be sent to Congress in November 1980, while the IRS and the contractor will continue to test and refine the proposed new forms and instructions during 1981. The IRS continued studies to deterrnine compliance with some of the approximately 90 provisions in the Internal Revenue Code that allow taxpayers to deter certain tax consequences to later years. The tax return examination phases of several studies were completed during the year and the collected data are being analyzed 37

This year the IRS completed TCMP examina- Other SOI publications completed in 1980 in- Requests for Tax Rulings and Technical Advice (Closings) corporation income tax re- cluded a study of private foundations for 1974 tions of a sample of Taxpayers' Field turns filed in 1978 and started examination of and a report on individual retirement accounts Subject . randomly selected employee plan returns for returns filed in 1976. Total Requests Requests (Forms 5500 and 5500C), individual returns SOI publications may be obtained from the Su- Total 31,284 29,869 1,415 and exempt organiza- (Forms 1040 and 1040A) perintendent of Documents, U.S. Government Administrative Provisions 107 76 31 tion returns (Form 990 series). Printing Office, Washington, D.C. 20402. Changes in Accounting Methods 7,980 7,980 In 1980 the IRS furnished the Department of La- Statistics bor a magnetic tape file of a sample of returns Changes in Accounting Periods 13,313 13,313 Statistics of Income (SOI) publications issued in for employee benefit plans for 1977 and provid- Earnings and Profits Determinations 1,298 1,298 1980 included preliminary reports for individual ad the Treasury Office of Tax Analysis (OTA) a tax returns for 1978 and unincorporated busi- magnetic tape file containing income tax return Employment and Self-Employment Taxes 1,041 335 706 nesses for 1977, plus complete reports of indi- data from a sample of small corporate busi- Engineering Questions 214 155 59 nesses and their owners for use in a special vidual returns for 1977, unincorporated busi- Estate and Gift Taxes nesses for 1976 and corporations for 1975. study. Work also began on developing a system 497 369 128 to provide OTA with data for a report to Excise Taxes 160 75 85 Congress on the effect of the Crude Oil Windfall Profit Tax Act of 1980. Individual income Tax Matters 2,223 2,097 126 The IRS also furnished OTA statistics on DISCs, Corporation Tax Matters 4,451 4,171 280 taxpayers who participated in or cooperated with an international boycott and the revised Technical Activities Internal Revenue Bulletin system of taxing domestic corporations on their operations in Puerto Rico and U.S. Possessions. During the year IRS acted on 31,284 requests The weekly Internal Revenue Bulletin announces for technical advice, including 21,293 requests official rulings and procedures of the IRS and Tax Models for changes in accounting m6thods and periods, published Treasury Decisions, Executive Orders, and issued 456 revenue rulings and revenue tax conventions, legislation, count decisions and The five basic tax models - individuals, corpo- procedures. other items of general interest. Bulletin contents ralions, sole proprietorships, partnerships and Letter rulings are written statements issued to of a permanent nature are consolidated semian- estates - used to make timely estimates of the taxpayers interpreting and applying nually into Cumulative Bulletins. Weekly and potential impact and revenue effects of pro- tax law to specific sets of facts. Such rulings provide guid- semiannual issues are available to the public posed tax legislation were updated in 1980. The ance concerning the lax effect of proposed through the Superintendent of Documents, U.S. models consist of computer programs to tabu- transactions. Letter rulings are not precedents Government Printing Office, Washington, D.C. late and analyze the most current SOI data avail- and may not be relied upon by taxpayers other 20402. The 1978 preliminary report for individuals con- able in these areas. Under a federal-state ex- than the recipient of the ruling. During 1980 the Bulletin included 398 revenue change program state governments can obtain tained statistics on the residential and business Technical advice is issued by the National Office rulings, 58 revenue procedures, 15 public laws energy investment credits provided by the Ener- copies of the individual income lax model file for relating to internal revenue matters and 19 com- their tax administration purposes. The public at the request of district offices to provide guid- gy Tax Act of 1978. Data reflecting the effect of ance on the proper applicaton of the tax mittee reports, 80 Treasury Decisions containing other tax legislation as well as information on may purchase from the National Archives the laws to new or amended regulations, 19 delegation or- were same file without data identifying taxpayers. specific facts in connection with audits of tax- high-income taxpayers also shown. payers' returns or claims for refund or credit. This year the IRS published its first supplemental Revenue Rulings and Revenue report on domestic international sales corpora- Legislative Analysis Revenue rulings are interpretations of the tax Procedures Published laws published in the weekly Internal Revenue tions (DISCs), presenting information on prod- This year the IRS developed 16 implementation Bulletin to inform and guide taxpayers, practi- Type Number ucts and services exported, by country for plans to administer new tax legislation. tioners and IRS personnel. which the exports were destined. Two other Administrative 20 supplemental reports provided information on the foreign income and taxes of U,S, corpora- Updated Procedures Employment taxes 19 tions claiming a foreign tax credit and on the op- During 1980 the IRS Estate and Gift Taxes 46 erations of foreign subsidiaries of U.S. corpora- provided revised procedures for issuing rulings and determination let- Excise Taxes 37 tions. ters and for entering into closing agreements, During the year the IRS also provided a report provided revised procedures for furnishing tech- Exempt Organizations 35 dealing with the sale or exchange of capital as- nical advice to district directors and chiefs of ap- Income Taxes 260 sets for tax year 1973, classified by type of as- peals and published a complete list of no-ruling set, by the amount of adjusted gross income areas that provides for early announcement of Employee Plans 31 and by the length of time the assets were held. those issues added or deleted. Tax Conventions 8 Total 456 38 EE

ders, I Treasury Department Order, 22 notices vision conducted 527 investigations involving al- elements and performance standards were es- of suspension and disbarment from practice be- leged employee misconduct and 128 of these tablished for approximately 55,000 employees fore the IRS, 253 announcements of general in- investigations resulted in exoneration of the em- under 300 different standard position descrip- terest and 3 court decisions. ployees involved. tions not covered by merit pay. The Senior Ex- ecutive Service (SES) and the federal equal op- Art Print Panel Integrity Program portunity recruitment program were implemented, the Executive Resources Board was revised, A new advisory group was created this year to Continuing its efforts to assist IRS managers in a Performance Review Board was established advise the IRS on the valuation of art prints. The maintaining a high degree of employee honesty, and all personnel training programs have been an print panel consists of print publishers, dis- the Inspection Service's integrity program is or are being revised to reflect new statutory and tributors, retailers and curators and will review aimed at preventing fraud, waste and error. This regulatory requirements. taxpayer appraisals to determine whether program includes reviews and investigations to claimed values are appropriate. The panel will detect and deter material fraud and weaknesses Recruitment help the IRS cope with abusive tax shelters that in controls. use inflated appraisals of art print publishing The Internal Security Division continued to in- This year the IRS negotiated an agreement with ventures. crease the number of integrity awareness pre- the Office of Personnel Management (OPM) to sentations to IRS employees, which include vid- accept fully delegated authority to examine and Internal Audit eotapes that realistically portray bribery situa certify candidates for the internal revenue agent tions as well as other possible integrity breaches occupation_ nationwide. This delegation of au- Additional revenue of $150 million accrued to employees may encounter. thority with an improved equal employment IRS when management acted on Internal Audit opportunity affirmative action program, targeted reports that strengthened controls, improved op- advertising and a new rating schedule - will im- eralions and brought about better service to tax- Fiscal Management prove the timeliness and effectiveness of recruit- payers. Top managers were provided with a bet- During 1980 savings of about $1.4 rnillion were ment. The IRS is negotiating for similar authority ter perspective on how their functions operated to recruit and examine for additional occupa- sampled of- reported and verified through a management- through 42 coordinated audits that generated savings program that rewards man- tions unique to IRS, such as revenue officer and fices to evaluate IRS programs nationally and re- agers who cut costs. This procedure allows tax auditor. gionally. Abstracts of Internal Audit findings are managers to reapply half of the saAngs resulting distributed monthly to IRS officials to alert them from their cost-cutting initiatives to programs Labor Relations to areas that may need increased management One investigation uncovered corruption involv- un- are also made to top manage- der their control that they determine to be most attention. Reports ing members of an IRS unit that appraises val- in need of additional resources. The balance is This year the negotiation of a master labor ment on the implementation and effectiveness of ues on real property. Bribes estimated at used to deal with Servicewide problems or is agreement continued with the aid of the Federal actions taken on General Accounting Office re- $62,000 were paid to some IRS employees and given up in the next year's budget. Mediation and Conciliation Service. views of IRS activities. a supervisor for placing low appraisal values on Labor relations information is provided to field This year Internal Audit also established a group property for federal estate and gift tax purposes. The appraisals were estimated at $17 million be offices biweekly through the Labor Relations Re- of auditors to review the design and develop- port, a newsletter for executives and personnel merit of new and significantly modified aulomat- low fair market value and the potential tax loss staffs. data processing systems, These reviews de- to the government was approximately $4.5 mil- ic lion. Former IRS employees, executives in pri- termined whether internal controls, documenta- Awards and Recognition tion standards and audit trails existed and vate industry, attorneys and certified public ac- whether controls were cost effective, efficient, countants were among the 13 defendants in this Joseph T. Davis, Assistant Commissioner for Re- comi5liedwith legal requirements and carried case. All were convicted, sources Managemeni, received the National Civ- out management policies prescribed for the sys- Assaults and threats against IRS employees in- il Service League Career Service Award this tem. creased from 455 in 1979 to 508 in 1980. The year. In September, Deputy Commissioner Wil- Division protects all IRS employees so threat- liam E. Williams and Assistant Commissioner Internal Security ened or assaulted while perlorming their duties Davis were two of only forty-nine federal execu- and seeks vigorous prosecution of these cases. tives to receive the SES Distinguished Rank Internal Security Division investigations to pro- Award from the President. In addition, four other of the IRS resulted in the arrest In addition to investigating criminal misconduct tect the integrity or irregularities affecting IRS employees or oper- IRS executives received SES Meritorious Rank or indictment of 107 taxpayers and tax practi- Awards from the Secretary of the Treasury. They employ- ations, Internal Security conducts background tioners and 65 IRS employees or former investigations to determine the suitability of ap- were: Thomas Cardoza, Western Regional Com- ees and 89 persons were convicted or pleaded plicants and newly hired employees. The Divi- missioner: William Waters, Mid-Atlantic Regional guilty. Of these convictions, 20 were for bribery Commissioner; Americo Afford, Mid-Atlantic As- sion completed 11,727 background investiga- Personnel and 14 were for assault while the rest involved during the year and sistant Regional Commissioner for Resources conspiracy to defraud the government, obstruc- tions of employees conduct- Management, and Joseph Kump, Fiscal Man- ed police record checks on all persons consid- In implementing the Civil Service Reform Act this tion of justice, embezzlement, disclosure of con- ered for temporary appointments. These investi- year the IRS developed agement Officer. Also, 56 employees received fidential tax information and impersonation of a critical job elements and Presidential Letters of Commendation for contri- federal officer. gations and record searches resulted in the re- performance standards for managers and man- butions resulting jection of 107 job applicants and dismissals, agement officials covered under merit pay and in benefits of $5,000 or more suspensions, reprimands, warnings or demo- implemented a Servicewide merit pay perfor- tions against 376 employees. In addition, the Di- mance appraisal system. In addition, critical job tE 41

task for exceptional achievement in specific Pro- An IRS/General Services Administration A new training or to re- on energy conservation completed an on- plan has been adopted, calling grams and 49 more were recommended force for about one-half of the training curriculum in letters. site survey of all IRS service centers and estab- ceive commendation immediate ener- the next decade to be delivered at the larger lished plans and schedules for POSts-of-duty rather than in presented under the IRS incentive gy conservation. The measures recommended centralized class- included 13 Commissioner's rooms. This will result in a need for fewer in. Awardsawards program will result in energy savings of up to 33 percent structors Awards and nearly 13,000 awards to employees This energy savings could and Savings in travel and per diem. superior per- based on 1975 use. for adopted suggestions, sustained keep approximately 3,600 average homes Com- The IRS also conducted a revised executive de- tormance and other special acts or services, fortable through one entire heating season. velopment program, added a new tax adminis- saving about $3.3 million. tration course to the executive Management's continued emphasis on reducing training curricu- federal tele- lum and introduced a new computerized system the number of calls placed over the for administering and other Personnel Programs communications system network enabled the monitoring individual de- of approxi- velopment of executives. The IRS has replaced its alcoholism Program IRS to absorb a tariff rate increase additional cost. A new training program with a broadly based employee assistance pro- mately $160,000 without prepared internal reve- employees troubled by any nue agents to summarize the prosecution's case gram through which to give problem will be coun- Management Braille Machines and expert testimony in trial appearances. personal or emotional Paperwork reading machines to aid orPretrial and at their request, to help them identify research by visually handicapped during-trial duties and actual pre- seled, its efforts to eliminate unnec- taxpayer ser- sentation of expert testimony problems and motivate them to seek profession- The IRS continued vice employees are being tested and evaluated are all stressed internal management reporting, Cancel- during the training. al assistance essary at seven Pilot locations around the country. ing 26 reports in 1980 for annual savings of ap- offices un- Training also was developed to help problem The IRS is conducting tests in eleven proximately $540,000 experimental program to examine Security resolution officers manage their program and to der OPM's 185,000 cubic feel of rec- learn to identify evaluate schedules that allow flexible and Disposing of some systemic and procedural prob- and nearly 432,000 cubic feet to During 1980 the IRS reviewed and evaluated se. lems when attempting compressed working hours as well as part-time ords and retiring to resolve taxpayer com- record centers resulted in the release of curity at computer sites, developed systemic plaints not satisfied through employment. These tests are being monitored federal normal IRS chan. on- space and equipment valued at $6.9 million. and procedural safeguards and assisted system nels. through the use of employee questionnaires, designers. The reports and an analy- IRS also conducted safeguard site research coordinator reviews of federal, state and In response to passage of the Crude Oil Windfall Information and conclu- local governmental Profit sis of production data. agencies that receive taxpayer information Tax Act of 1980, training was developed to concerning the program will be reported to to provide selected sions assure that those agencies comply with IRS se- examiners with an understand- IRS top management and to OPM in May 1981. ing of the law and congressional curity standards. IRS has initiated a risk analysis intent. informa. tion about required examinations and verifica. program to examine actual and potential threats tions Centralized Services to the security of automatic data under the Proposed regulations and an processing in- overview of the report writing centralized services, in- stallations and systems and to recommend cost implications of the In the second year of beneficial safeguards Act. structions and guidelines were issued to bring to reduce the risk of loss, processing of work docu- alteration or unauthorized disclosure of sensitive Other new training programs developed in 1980 about the uniform automated data. cover a basic and ments by all districts, A new quality measure- advanced statistical sampling developed as well as a com- course for revenue agents, combined annual ment system was wage reporting, puterized work planning and control system. Na- Training disclosure orientation for ser- tionwide implementation of both systems was 'Ace Center employees and illegal Protester During 1980 the IRS completed testing and eval- This year the IRS conducted 555 training training for employees who have publictax contact. started in the fall of 19BO. courses, providing uating equipment for the wage information re- some 96,700 Opportunities And, the IRS has entered into an one of the largest Com- for individual training, with some employees par- agreement with Management trieval system (WIRS), Arkansas Enterprises for the Blind so that some Facilities puter-assisted microfilm retrieval applications in ticipaling in more than one training activity dur- visually impaired ing the year. students will receive IRS train- This year the IRS began a major building pro- the country. This program, conducted at the An- ing needed for employment with the IRS. gram in support of the service center replace- dover Service Center, is an integral part of the ment system that involves the replacement of 'If- federal government's effort to eliminate dupli- most all automatic data processing equipment in cate information reporting by the public. the ten service centers. The design for the first group of five service centers was completed in Other Facilities Programs rooms will be 1980 and by 1983 now computer The IRS had 4.5 disabling injuries per million finished in all centers. staff hours worked in calendar year 1979, compared to 3.2 disabling injuries per million staff hours the year before. IRS employees drove 121 million miles with an accident frequency rate of 5.2 accidents per million miles driven. In 1978, employees also drove 121 million miles. but had an accident frequency rate of 5.5 accidents for each million miles driven. EB a]

installation of the data communira- processing of Equal Employment Opportunity nationwide more than 300 million information Court. The attorneys also advise the IRS and as- tions processing system (DCPS). DCPS current- documents to assist in screening returns for ex- 1980, full-time regular sist the Department of Justice on refund suits, From July 1979 to July ly augments the integrated data retrieval system amination. criminal tax cases, suits, seeking the employment increased by 2.4 percent. The and will be coupled with SCRS. disclosure per- of files and documents of the IRS, collection number of women employed increased 6.1 In 1980 Data Services worked with its IRS users Detroit Data Center suits, and nontax litigation involving the IRS in cent and minorities by 12.6 percent. Women in- in the higher to design and program changes that would elim- federal and state courts. creased their representation inate the need at ten service centers for manual- The payroll system, which services all of IRS, grades from 5.3 percent of the positions at GS- was converted to a new computer system that In 1980 the Chief Counsel library began to re- and minorities from ly sorting returns and documents by district of- now classify the 100,000-volume collection 13 and above to 6.5 percent fice code. Beginning Jan. 1, 1981, service cen- handles the bi-weekly payroll for more than on laxa- 6.5 percent to 7 percent. The employment of re- 90,000 employees, As the IRS'central site for tion, legislation and economics. The project will in such key ters will no longer sort most tax returns and be accomplished with an automated women and minorities also gained lated documents by the geographic locations in management information systems, the Data cataloging jobs as revenue agent, attorney, criminal investi- Center generates about 150 personnel and fl system, allowing the library to participate in the which taxpayers reside. Previously such sorting federal bibliographic data base, greatly expand- gator and appeals officer. was done for control and accounting, but these cal reports, and more than twice that many for such special other projects each month. This year the Datas- ing reference and interlibrary loan service. Nationwide, IRS offices observed procedures will now be automated. It is estimat- Center also has events as Black History Month, Women-in-Gov- ed that this refinement will save the IRS $2.2 mil- provided TCMP tabulations, and management information reports and special Criminal Tax ernment Month, Hispanic Heritage Week lion when fully implemented. evaluations Asian/ Pacific American Week. All managers such as the casino/racetrack win. Data Services also continued to respond to user nings compliance study. For 1980 there were 2,726 referrals by Counsel and executives received actual employment op- improvements to existing for prosecution and some 19,000 staff hours training as part of merit pay and needs for changes and portunity (EEO) programs. Currently there are more than 2,700 were spent on legal assistance to Criminal In- SES training, while other EEO training was of- the National Office Chief Counsel vestigation Division, such as that given to special computer programs active in fered in courses alone to meet user requirements. The Chief Counsel, an emphasis coordinators. Assistant General Coun- Procedures for processing grand jury requests sel of the Treasury Department, is the chief legal and evaluations were revised during the year to IRS contract awards during 1980 totaled Center officer for the IRS and is a member of the Com- speed up to the and National Computer handling of such matters. Dead- $23,238,000 to small businesses missioner's executive staff. As such the Chief lines were established for regional and Chief $6,020,000 to minority and disadvantaged firms. With construction and renovation continuing at Counsel advises the Commissioner on matters Counsel review of requests for the initiation of the National Computer Center (NCQ, five com- Pertaining to the administration and enforcement grand jury investigations. In library of some 125,000 mag- addition, Chief Data Services puter systems, the of the internal revenue laws and related statutes, Counsel established procedures for providing netic tapes and related functions were moved to as well as on nontax legal questions. period of transition evaluations of the results of grand jury investiga. The past year has been a a permanent location in an addition to the exist- tions to district counsels. The with Data Services preparing for the equipment ing building. The Chief Counsel is assisted by a Deputy Chief IRS now is provrid- divisions were Counsel (General), a Deputy Chief Counsel (Lili- ing a faster response to United States Attorneys' replacement program (ERP). Two requests for grand jury assistance and merged to farm a Tax Systems Division, consoli- gation), a Deputy Chief Counsel (Technical) and evalu- analysts and programmers; guidelines seven regional counsels. dating Receipt and Disposal of were established for systems development; im- The Office of Chief Counsel employs over 900 proved procedures were introduced for analysis, attorneys, making it one of the largest law firms Criminal Tax Matters design and programming, and greater emphasis in the country. These attorneys are located in Prosecution Cases Received was placed on use of a high-level computer pro- the National Office, the seven regional counsel From Criminal Investigation gramming language. offices and 45 district counsel offices. Total Opened 2,267 The service center replacement system (SCRS), Approximately 40 percent of attorney time is the first portion of ERP, moved closer to realiza- spent handling litigation in the United States Tax Total Closed 3,702 invitation to tion with the issuance of a formal 10 41111111 Counsel Declined 523 the computer industry to Submit bids for the sys- Wftftw,; sairsisift- was taken with Department of Justice Declined 632 tem. Another step toward SCRS J-4_FZ1 U.S. Attorney Declined 655 As of July the number of taxpayer accounts on Prosecutions Completed 1,892 the individual master file had grown to 117.2 million, an increase of 2.8 percent over the Opinions same period in 1979 The business master file Pending Beginning 35 percent grew to 22.9 million accounts - 9.1 Total above 1979. The exempt organization, employ- Requested 109 ee plans and individual retirement account mas- Total Rendered 97 million and ter files contain 1.1 million, 1.3 Pending End 260,000 accounts, respectively~ 47 Another computer system, making a total of nine, was installed and producing in March, making it possible for NCC to accelerate the 44 45

ation of the results of grand jury investigations, General Litigation Cases Received telephone companies are to be considered lm~ third-party recordkeepers under IRC In United States v. Clardy, 612 F. 2d 1139 (9th Types of Cases- Regions: 1979 1980 Cir. 1980), the circuit court upheld the IRC sec- 7609(aX3XC) because they issue credit cards tion 7206(2) conviction of an individual who sold BankrupteyAct Proceedings 2.104 3,211 has been tested; tax protesters have continued u~~,.;,tao,irnpede rolleclion of taxes through the tax shelter schemes that involved a fictitious him Miscellaneous Insolvencies 70 "paper trail" to justify certain interest deduc- 80 se or incorrect Forms W-4; the authork tions. Decedents' Estates 386 339 ty of district directors to direct employers to disregard Forms W-4 as false or incorrect was In United States v. Peister, No. 78-1961 (1 Oth Suits to Collect Taxes 633 754 established; IRS information-gathering during Cir., decided Aug. 4, 1980), the court upheld Section 2410 (28 U.S.C. 241 0): audit in connection with its taxpayer compliance the conviction of a tax protester who used a measurement program has been challenged, church /vow of poverty defense in a section Interpleaders 302 352 HIM Others 243 691 and the Supreme Court again upheld the broad 7205 prosecution. In upholding the conviction authority of the IRS to obtain information by the court found the church/vow of poverty as- Injunctions 146 150 means of a summons in United States v. Euge, sertions insincere. Disclosure and Testimony 461 505 444 U.S. 707 (1980). Summons Cases 6.799 7,757 EP/EO Interpretative 2M Erroneous Refund Suits 31 19 During 1980 the Employee Plans and Exempt Much of the work of the Interpretative Division Organizations Division developed regulations Miscellaneous Court Cases 1,357 1,857 during 1980 was in fulfilling its responsibility as implementing the Employee Retirement Income Advisory Opinions 4,870 5,120 principal legal advisor to the division directors Security Act of 1974 (ERISA), the Tax Reform under the Assistant Commissioner for Technical. Act of 1976 and the Revenue Act of 1978. Reg- Tax Return Preparers: A number of revenue rulings and technical ulations were published in proposed, temporary Advisory Opinions 12 13 projects were considered, especially'in connec- or final form on such matters as the limitations Court Cases 7 12 tion with IRS efforts 10 deal with tax abuse de- on contributions to and benefits from employee Total, All Regions 17,421 20,860 vices and questionable tax shelter schemes, In plans, the elapsed-time rules for minimum vast- addition, legal advice was provided on such ing and participation requirements for employee National Office: 1979 1980 matters as the implementation of the new in- plans, the rules for medical rembusement plans, come tax withholding exemption provisions. the rules for voluntary employee benefit plans Appeals 226 335 and the. rules for disposition of private property Advisory 324 360 and self-dealing for private foundations. Legislation and Regulations Other Centralized Cases- 13 14 Employee Plans and The Legislation and Regulations Division contin. Total, National Office so 709 ued to develop regulations to implement the Tax Exempt Organizations Reform Act of 1976, the Revenue Act of 1978, Division Cases Received Total, All Reglicins & National Office 117,984 21,569 the Energy Tax Act of 1978 and the Foreign Type of Case Earned Income Act of 1978. The Division also Includes actions for injunctions andtor dedaratory relief. Revenue Rulings 46 Letter Rulings 29 Receipt and Disposal of General Litigation Cases - National and Regional Technical Advice 41 Status 1976 1977 1978 1979 1980 Court Man-Court Total Other Advice 28 Pending Oct. 1, 1979 10,441 1.672 12,113 volving matters of ethics also rose sharply due Legislation to the enactment of the Ethics in Government Received during year 15,571 5,998 21.569 Regulations 11 Act of 1978, The Division also is responsible for Disposed of 13,503 5,904 19,407 Miscellaneous is reviewing the financial disclosure statements that IRS and Chief Counsel officials are required Pending Sept. 30,1980 12,509 1.766 14,275 Total 173 to file under the Act.

General Litigation Interpretative Division Cases Received General Legal Services The General Litigation Division furnishes legal Type of Case 1975 1976 1977 1978 1979 1980 attorneys tried 103 General Legal Services assistance to the IRS in connection Win the col- Revenue Rulings 443 423 399 385 302 255 cases with 781 hours of trial time in 1980, Litiga- lection and internal assessment procedures re- tion in the personnel and labor areas increased lating to federal taxes. During the past year the Letter Rulings 117 114 122 98 32 77 substantially again this year and questions in- constitutionality of the crude oil windfall profit Technical Advice 80 73 80 60 37 59 tax has been challenged; several states have re- vived attempts to obtain federal tax refunds Other Advice 212 257 189 175 141 190 through local escheat laws; the issue of whether Total 852 867 790 718 S12 Sol [E 47

Receipt and Disposal of Legislation and Regulations Division Cases Tax Litigation ration's stock in exchange for its voting stock, notwithstanding the remainder of the target Pending Pending In test cases a district court in Delaware and the stock could have been acquired for cash. These Type of Case 110/11/79 Received Disposed 9/30/80 Tax Court ruled that International Telephone holdings reversed the IRS' position and the ac- and Telegraph's 1970 stock merger with the Legislation 55 55 52 58 cepted position of the majority of the tax bar for Hartford Fire Insurance Company could quality the last 40 years. Regulations 319 96 90 325 as a tax-free reorganization under section 368(a)(1)(6), even though cash had been paid The First and Third Circuit Courts of Appeal re- Miscellaneous 66 69 75 for 8 percent of the acquired corporation's versed and remanded the lower courts' opin- Total 452 217 211 458 stock. The trial courts' opinions determined that ions, thereby sustaining the government's posi- the statute's "solely for voting stock" require- tion that "solely" in the statute provides no ex- mem could be satisfied when the corporation ceptions. The issue is still pending in the Fourth began to develop regulations to implement the and Ninth Circuits. Crude Oil Windfall Profit Tax Act of 1980. Tax Court Cases Received 20,660 acqui red at least 80 percent of the target corpo- During the year the Division published 46 new fi- (Total above bars Tax In Litigatlon-Tax Courl Cases nal regulations, 18 temporary regulations and 58 16,995 (in thousands of dollars) partici- is total number proposed regulations, while the public of cases.) All Tar Court CSSSS2 *"I Tes Caere pated in 27 hearings on proposed regulations. URTIE ..,w T- antl Plataftlas -0-plifeente amse, Tanse, real Penalties 0-pripasse projects were: targeted at*. Some of the regulations or In DOW. claimed Dres. Cases.1 DIM"In D"" Claimed DW- jobs credit, taxation of unemployment compen- CSSSS. Dispute athard retired .k" raised sation, disability income exclusion, tax treatment Pendling 10/01/79 27.310 $3.707.483 1273.220 4,450 114.5W lin of certain homeowner associations, withholding R..W.d 20 2,047.890 28,777 7,949 11.318 so on gambling winnings, gas guzzler tax, various Disposed' 13:6876'6 745,053 $234.921 15,217 11,5D1 5,389 6.787 $2,968 56 SM windfall profit tax, with Racm-ery Rate - 31.5% 75.6% 51.3% 59.2% aspects of the reporting Pending respect to income from bearer certificates, de- 9/30/80 34,103 5,010.320 286.780 7.030 10.081 EM posit requirements for withheld income and I Does not include an inventory of nondeficiancy -3 - Amount determined expressed = percentage of FICA taxes and recovery of excessive profits on consisting of 70 cases pending 10/1 /79, 54 receipts, 39 amount asserted or claimed, These amounts do not If, government contracts (Vinson-Trammell Act). disposals and 85 cases pending 9/30/80. clude proposed assessments that are agreed to by the Includes both Small tax cases and other taxpayer at district or appellate conferences. In the Rotund Litigation Cases Received UM Disposals include cases tried, settled, and dismissed. cass of a claimed omripayment the rsco,,ely rates I Some of the determined amounts am for cases that shoom above represent the portion of the amount In dis- Tax cases other wene subsequently appealed. pute that win refunded to the taxpayer. than small cases

K~ Appellate Court Case Record UM (Decisions-Refund Litigation and Tax Court Cases)

iu. plarity for east partly EM Fe, the Agishad 1. AgehM the Court Total Mo. % % 111. % ULM Courts of Appeals 242 195 80.6 40 16.5 7 2.9

MMM Originally Vied in Tax Court -156 132 84.6 20 12.6 4 2.6 District Courts, 186 63 73.3 20 23.3 3 3.5 Supreme Court Small tax cases I Of the cases originally tried in Tu Court, the Courts of 2 01 the casse viginally tried in District Courts, the Appeals rendered 156 opinions In 214 dockets, incJud- Courts of Appeals rendered 86 opinions in 111 cases, Ing 187 dockets for the go-ment, 23 dockets against including 87 cases for the government, 20 agaimt the the g-mment and 4 dockets partly for the govern. goverrment and 4 partly for the government. ment.

1976 1977 1978 1979 1980 1976 1977 1978 1979 1980 a 48 Appendix

Trial Court Case Record Contents Statistical Tables Table 16. -Appeals Division receipt and (Opinions Rendered-Refund Litigation and Tax Court Cases)' Table 1. - Internal revenue collections by disposition of income, estate, and gift tax cases petitioned to the Tax Court (docketed)174 Tal Court, sources and by Internal Revenue regions, districts, states and other areas/51 Table 17. - Requests for tax rulings and Geoff of DNOW Srnau Ted, technical advice (ciosings)/75 Cialme courts Q_ on- Total Table 2. - Internal revenue collections by source/58 Table 18. -Determination letters issued on 1979 ISM 1979 IOW 11971 19W IM ISW 1979 111111110 Table 3. - Internal revenue collections by ERISA employee benefit plans/75 -Number 20 .23 146 150 347 310 325 330 672 640 Decided In lanno, principal sources/60 Table 19. -Number of returns examined by Of Gwenment 41.cel 50.0% 46.0% 60.3% 65.8% 552% 53.4% 49.8% 51.0% 52.5% 52.2% Table 4. -Amount of internal revenue refunds type of exempt organization/75 Diecided in fainvor -Number 15 24 69 51 62 55 65 71 127 126 including interest/62 of Taxpayer -percend 37.5% 48.0% 28.5% 22.4% 9.9% 9.5% 10.0% 11.0% 92% 10.3% Table 20. -Number of active entities on Table 5.-Number of internal revenue refunds exempt organizations master file/76 Decided partially for the issued/63 Taxpayer and partially -Number 5 3 27 27 219 215 262 246 481 461 Table 21. -Disposal of exempt organization for the G.-t -percent 12.6% ill 11.2% 11.8% 34.9% 37.1% 402% 38.0% 37.6% 37.6% Table 6. -Overassessments of tax as the result applications/76 of examination/63 Total Opinions 40 50 242 228 628 580 652 647 1~2110 1,227 Table 22. - Internal revenue collections. costs, employees and U.S. population/77 Related Cases am reflected as one opinion, s647Tar Court opinions im,olhing 86tcasissotherthan Table 7. -Number of returns filed by Internal 50 opinions in Count of Claims Involmng 57 Cases. Small Tax Court Casee. Revenue regions, districts, states and other Table 23. - Costs incurred by Internal Revenue 3228 opinions ~n District Courts imtolving 250 Cases. I On Cases for which decisions were entered during the areas/64 Service by activity/77 - 580 Tax Court opinions invohnng 615 Small Tax Cases. fiscal year. Table B. -Returns filed, examination coverage Table 24. - Costs incurred by Internal Revenue and results (1980)/66 Service by office/78 Tax In Litigation-Refund Suits' Table 9. - Returns filed, examination coverage Table 25. - Personnel summary/79 and results (1979)/68 (in thousands of dollars) Chronological List -Commissioners of Table 10. - Number of returns examined by 1:11011,11cl Cuft court at claw" TOW Internal Revenue and Acting Commissioners class of tax and by Internal Revenue regions, during transitory periods/80 statue Nanniber Amoand Amount NumMer. AmOuld Amaxterl Number Ameand Arecand districts and other areas/70 of In h, .1 In to .1 In In Table 11. -Additional tax and penalties Principal Officers - of the Internal Revenue c- owpuw sum Cases DftpUW flow c- cup~ sulp recommended after examination by class of Service as of September 30,1980/82 Perroling 10/01 /79 2.932 S504,896 793 $748,222 3.72531,253,118 tax, and by Internal Revenue regions, districts Organization Chart/88 Recithred 736 95.137 162 76,166 898 171= and other areas/71 D.p."W 1.01148 122.012 206 123,628 1.294 245.640 Table 12. - Returns examined by Examination Map -of Internal Revenue Service regions, Amount in SuM M.lG6 $108,418 $198.524 districts, and service centers/ Inside back cover Amount Not Division/72 Refunded 28,947 66,275 95.222 Table 13. -Results of collection activity/72 %Not Refunded 32.1% 61.1% 48.0% pending 9130/80 2,580 478.021 749 7DD.760 3,329 1,178,781 Table 14. - Civil penalties assessed and abated/73 I Cases in Courts of Appeal and the Supreme Court are perialfies and interest, and counterclaim amounts. included under the columns representing the court Of - Amount of taxes, penalties and asserrsed interest Table 15. -Appeals Division receipts and origin. sought as, a refund. dispositions of cases not before the Tax Court Disposal, include cases tried, settled. and dismissed, sThat portion of the amount sought as a refund that was Amount in dispute includes Claims for refund of taxes. not refunded to the tupayer. (nondocketed)/74 50 1 Statistical Tables 51

Table 1-Internal revenue collections by sources and by Internal Revenue regions, districts, states and other areas (in thousands of dollars)

IoIII-oVI -And -W,- - T-I= - - I- .. oo'~. T-1 - -*w _.M "iI,oIIi uIMPI"-I MCA- V., I- In- I

(1) (2) (3) (4) (5) (6) (1)

~ ...... 519,375,273 n.379,01V "..89.00 M0,585.226 2.534.10al 3,3112.000 ...... "O,On 15...,122 .2.,041 9.1=40 69,514" ~,375 545.9113 Al-y ...... 3,522,197 301029 3.173,521 339087 2.797.105 %373 27.9M Ao~. 126,039 1.099 629 193,125 W5.N7 10.829 10,30 0 072 W83 ,NO - :510, 1 9.182,103 16.2. 89,720 (SN (C) ~:02' wg:m "7:0"6.74'11.47~ N7." 30110 , ...... W U3 31,IW 56,305 B rWVw ..... 7,593,320 1,309 641 G'OOa.557 787.3M77' 711 WHO ...... (VI,mnt) ...... M2.225 a'.7 490mG 102.7. .:9'149 W5 4..9 -Vd- -CUQ ~ ...... 11,056,026 1.1197.695 8,777,398 1,4W.210 ?,=,074 .11, --1 ...... 39,659,092 9,157.7N 0231 p h 29,-~In 2,725.N3 7,102 2;0, M 1 479.717 212,706 1,209,029 218,702 "ON':'- 1. .153 po~-' :.2,1,1 2~4.1 187.652 N1 . 47.U7 ON ...... 4352 15w 1:41-11 ~MI'ld I D C) 'I'm 917.00 0I.MV 13.715,826 970,N8 12J75,74D 1.656 700 1M MAN 58 738 j-Y) 19,526932 3.082,042 15,489,02 2.350.598 13~G"83:1'79' 12.:W8 (NI 16.2W M2 1.662.677 13,UD.703 1.886,01 11:17 :1'114. 307123 147.763 IS 1.2:11 1 1~447 122 9,913.1`81 1,012.596 M 36,318 90,421 (V"V 69:15a 899.625 6,712.203 1,25a.169 5.2w"N 112,W 52,487 z.,Ion (DII-") 2,355,639 496 BN 1391,570 184,674 1.589'an 230 17.029 %~' 6,039.036 WN0.114 9.03.700 31,391,242 ID7.393 3".779 AU-, 36.810,278 1,096432 5.64I.N7 4'.5'7'1:171WO '.5W207:5741'6 3,07 68.651 Go, ...... N7.9m 645.700 3,1153,977 2.615 WW3 . . .. (So.hr--) 3461.428 AM 615 2,961,6DO WIN 2,424.026 939 30147 G-0 ...... (N- Ca,oh,a) ...... 9.831.734 1.425 M6 6.8154,193 I.IM,921 5,637.427 477 70,368 j'C'oooj,c-...... W-~) ...... 1,978.481 2D4 577 1,718,718 472.511 1,228,548 1~173 16,487 ...... 15,779,862 1,639,804 13,261,916 4.088.5 8968.341 WIN 106,935 '-hI...... (T.n.. . )...... 6,419.4a3 751,M2 5,30.421 1.038,203 4,307,416 _-, Rw...... "AM., 49,498 C-,n.,,- 0"J" -W,731.272 7,2ft- 60.053,22B M.- a. 1. 85,832 1,659,664 8,306,09 1.114,951 7,182.231 17.104 71:903 C--'-- :: :::: *:::::: - f-' ZZ ~'7.09.500 2,1N 074 14,141.- 1.600303 12.431,412 'O'in .- .... I ...... 25,097,3M 2,547.904 99.227 "'d, ...... 21,601.993 2.0406N 19.367,682 U.113 159,U .. . 10.620,337 ' 980,797 9 1..Ma 1,M5,W2 7.715AN 7,767 U 725 (KI-ky)... 6,061,662 951,823 3,nMO9 MOM 2.826.373 80,974 Man 1.962.7% 194.258 1,706,309 M2,319 1~339,666 2n 14.D9O M~' A". M912 11.142 65,082 36S 9.72 .838 MAX4. =a.$ 4.3.432 A 712:'2"19 57:170no w:~% 208,455 .40 3M 3 5,024 Ch.p. 1178,978 ..29 ND 24,837,389 3.077,725 21,219,U3 341 720 198.401 I~495,684 W5,w 3,721.719 IORU4 2629,161 1'oN 26,970 V V 016 N,3s3 746,877 228.02 512,722 12 5.311 M-oo.n). a7 645 11-11. 7.-.914 "OU.08 6,U9.817 1.777 .1.482 3.161,851 511.318 2~"W.621 567,503 2,078,613 126,024 18,481 L ...... I.M:-I) ...... 13033743 1.69OB37 10.626,142 1,403,437 $.%3.W2 179.879 WN s, I.., -Iota) ...... 11.673,809 1 M,105 9,651.161 I.OW.7D1 8,217.962 ...... (No (1,) ...... 5410,155 05.16, MuN 67.443 . 4.30 I'M M.823 3.336.811 a'M 31,056 ","a... 11.31.,M 5019161- II.NZ343 WMIS3 .8,W2 W826 1,443,692 131,W4 1.272.442 2N397 W41183 9,796 Cg"_A.- ::~:::: ::,:: 21.M.3 ..01.008 11A.,284 3.131,700 11,143.977 117:'4o12I ...... 851.446 95~389 W.786 221.D70 427.013 2 D'IjI...... 15 649.8`6 2,781,478 11,303.230 Z906583 8,291,1108 13,783 91.051 No- ...... ~Co-do 27,783.- 464.015 6,913 ON M'555 a.872.579 26 M 31,861 38'0,1 . I 272312 In 509,866 1,363,005 1.480 IB,OD3 o"= ...... 29691 858:631 ~'1'Q:923 I.IN,276 4.325,2N I.M 31,4N 13~297,415 I,4W.3OO 5,M903 1.032,676 4,016,222 5 002.2M WI.7N .2 37.762 ...... 3,827,07 9M.1w 2,698,597 167.64. 28,W5 KIM On 1017071267 WMITIV 13.7.1,476 214.695 5MAIR A-1I ...... - ~.) ...... M 480 W,469 823.93a 121,517 697.679 4.740 a.,. :'..) ...... 1,179,2U I.,- 11_.~' 221.= 1.062,114 .003 11.9% M__ 78174 818.171 251,681 NMI) W2 6MO .-Wu ...... 49710 M59 213 M 1~423.409 28ON6 1.131,743 .on L. A...... (-)(1511 (1) 34,055,637 5.158.610 27~171,169 5,521,M '.7. 226.365 P-i ...... 3,776.369 343.357 3.UI,523 757,225 2,555396 NO ID21 1340.992 366.085 3,698.451 552.M5 3,OID,721 -935 M, 10 1,772.172 196,428 1.486,577 378,331 1.095,30 1 5.'~ al. Cq ...... (Ut.h)...... 180.497 222,066 1.601,145 12,878 .o F j5oe V) 268.915 1.318 ON 1,932 1.~M I..) ...... 244817.224 2.774.247 W,359.4M 3,672,9M IUM M 211.011 I52.DBO P.-IN-) . 8,882.687 1.1166n 7.410421 1,415106 5,939 4W 957 U.515 ...... z"111", INIM 1.914A23 MM I.M., 9.3U Mm P- R'...... __ 7M.CM 15716 493,097 29.622 .5,Dj7 4178; Ct- ...... 1,5M.498 141,867 1,421.327 IM,204 I.W4.91.8 61ns 1-1 OIoo."...... 1.014.077 -30~663 -1~021,220 -1.G34.7W 7.252 6,278 G.. I --N N. FICA - 640.109 46.088 W021 594.021 T,".,. 1. G-- .1 G- ...... 49,M -19,235 .19.M W thNW I— of F-W -o~ IN= IN= IN= C,Zr,N I- lo, E- --,o f,,II od

I E- F.Id ~...... 38.6W 38,832 38,832 EI,,,,,O .. cl.0111 ...... 10,787 ID.787 10,787 45151511 -178 ~175

...... 58.871- 7.9.,.l 17,-,623 0,1111,1344 37.741.~7 212.801 378,.5 ...... 35.989,133 4.992701 29,206.144 4 072.548 21.556.3N 347,705 M,07 :aISOM 45,M6% 5,499.392 XM1,053 48,652 .5,579 ~'0 Cow .0 481758Z I 13'Wa ,U8,003 2,715.254 12613N3 27,977 171.13D P-y"~ia 28,26a,116 3,109m 23.UI.483 2,899.Q7 20050,727 U3,146 241,184 T_ 37MUN 7,2n.4W 25,707,511 6.M.283 19jM.785 21.V27 M8,5110 52 Table l.-Continued Table I.-continued 53 (in thousands of dollars) (in thousands of dollars)

VIVO ToIIII --P- (Stool .g* (coVIFiw Still- by III plolol,-; I..- I.p_ Iz 18 To., Moi~ by I— lc= by, CIFIVIl I _.) otolol (IB) (Is) (8) (9) (10) (") (12) (13) (14) (16) (18) (IT) IN) W) (a) (M) (W)

UtIl- Sol FI ~ ...... 211,- ..". IM311 ...... U .7 2111,131 1$,*,- S.-IIN 3M5.37" 1120,311 3.MM 4`3SV 18.10 m R.9W ...... 35.972 12.686 U1,27111 I.J. 1,011, 411.6411 2.110,545 UI,M W"O1 Inmil m"I m 2,37111 Ato... - ~. (1) W-) 129 - 38 ,26 i'm 16.116 37 21 - - 211 A,- ... . ~ .-) 10 "110 A.g- 20 5,711 "'m 16.321 30, 3.851 3.M 12 119 I—. . ::.: ...... 2 WI 2,Nl 2 12,960 . ;39 Ml 5,976 266,11119 142.129 12CM 62,439 M,01 318 4N 2,(Z9 ...... 2.659 92 92524 1,5115 138,1D, IS'.3 IS.M 14.W 1 318 20,267 M.267 107,3721 107.29V D,oto. ... (SIll, W 77, 5~~ 112I 128~M 3% B."No. (V-,t) 6.7SI .. :317's 'IS" 71 .-d 17 1 26 ...... I..m =.I 1M, -.- 9.9367 9,7.S 186 7 7.M7 S,l,, (W M 2W 17.1"= ',wS_VS 127.812M 110..~45 p . :: ~ nN"' ...... (M ")IlllIAo i:::::: 18.179 788 39,015 29.565 4,M F-t- -.1. 3 2 505 W.730 31. li'm 5.W7 N ...... 19,003 ...... V.VVI 13,- W- 2.112 .. . -,- 3MI.121 MAII, -~ MA43 IA71 Z., 21 . . C.) ...... 13.267 5.WI S2. 15 7N 2,112 13.5m _- .. i TM "SM 412.949 20.497 M~ M,521 l"p. m ...... 2,21 I— ...... (-~) ...... -) 2 2n (2,021 61.11M 1 61 2M 6.772 7W.172 M.W .2,- M1.4n 4" "2~7. Z (.I '17 w 48.,111 07N ~.526 7M.938 147.5114 MIN 97.117 307 162 P,lool Illv 3, ,":215 14.142 17 SSS 231 112.791 M,~ WMI 0! 311 1.596 I'Sm 40,N5 ...... 971%NS 21:3'55 M7.759 45.613 3.- 3.424 24 ...... 2 Wimngtol ...... 22,215 9(5 ".112 ..nili41 11 16 S.ItIll P.O. C213 2,72. 6.1164 265,039 ~ R"l 47AM 1MW "In IV' 11~156 MI., M, MIN W1.381 AllA ...... 2,3961 2.3n W.7" M Aloo...... W&I 4,221 SW.%I W.970 17.8% 17.5XI 13 W7 2 S-110.Co. _ ...... 3, 1 143 7i ow- ::: ...... 5".. Z517 128.2X 3.M 3,OM 2,926 129 ~-h Cooill.) ..bl...... (SoWh C.Ioll.) ...... 518 W, X666 1.269 U.278 11 : Ill— Cold .): ...... 3.139.1 3,139 102.735 102,66! G=1...... (- CIoFA.) ...... 91,773 3,295 1,447.246 106.M7 3M 7 1 325 ...... u"Imotp!) . 3 62,81378 j:c ...... 28,920 2AI3 23.64A 181 1 w 1 98 1 ...... 2.7W 2,5W lID 2.083 Mot 403SO 12,911 4W,Ug 155.019 69.5M .,Na MAN a 926 1 N Nol .. -),. ~ 18,518 to 4~ - I It U.281 12.;40 4,18ING MI1.7 79,6811 - TI,576 . 1 . ~.l R.0- ~: ~: ~ ~::: ~ :.1 1 ell ii;gioitt ...... 6,336 4.0a U3. IMISIV 2.7. 1.9.024 8, 0 m 1. 1..1.3. I.Ol 11111,740 "Im X_ Z03I C --11 ...... S. (d) .1-1 127 - 427 M.618 W596 d~ MIM 33N .615 S." 66,70 - 166,m .1 456 (d) 1,890 c-` 1.693 2N 0,621 20 S.S63 I 71.1 4:M 21 6 SM SIMI .,U2 26,242 17.= N W, 2.- 2.105 5119 Q.525 2,738 59.77A m SM 2.570 MEIN 37I,S(`, VN,"2 I.AW 142,211 I .SIM SIX 14 j;. 28 I-ool ...... 1163115 353.809 225,21. 213,U2 212m, IVO 411 L.-H...... K-Mky).. 3 143 14,297 MJ87 1,7701 1.321.172 755,M 115M 7..M 140 '213 212 W.399 7'am 7,776 7,71. pAlAt-0 Ill.) 59 25 w twl'l 7,293 3,111 Szsm m JILIN VVZ 31,602 ZM.040 "S." .1616. .&M I'm 2,41`7 2,092 3 A-- (ScOhD1k1W)_.__ 21 15,466 2.591 12.Wl 'to 66 66 C..W- ...... (~ (b) .1..)...... 51. 2,379 2,814 243 M2 I ...... (b) ~) ...... MIW m "'0, m 178.242 172.MS U,175 137,418 1 w D.. ..- ...... (1-Il ~ ~ ~~ ...... o*"`w ...... 28 2% 231'1 DIF,~ ...... 100 7M I1:656 58239 769 - 2DI 7n243 3 I.Vo ...... III- D.kot.) 2 2 a 2 F.lVo ...... D-.)... ,5:wl 414 9,110 76 65 3 - 63 -A" Mll ...... oAil) 56 555 10 1561011 at 185 us W 876 19 327.518 19I'M am 3,M 3,901 249 Bit 0_. - IN 1 34U 3 W C- W:l 53 ,1:mg 75.351 3,655 143 143 I.;N ...... 55' 5531 N 21 -10 7:111, W. l"'U8 72,nl 7.137 K201 ISIS 422 St. P.., ...... 2W 280 N."O. 29.8 s. P8.1 (m,ArIool ~I ::::: .07 4 2. M. 55.066 24702 2.871 MRS 1.120 m sollN1.1o ...... (F) A 1 1 WNW ...... (b) . 27,931 27.911 "0, ; 2.1U10 M,5NI 1.,178 136,W IS5.791 472 282 ...... 3,453 3,073 3711 WAU 24"2 M,M soIroIlItIrt R"itl M_ ~12 340.M 41,4010 ns. = Z'VI, = M%.) ...... 239 23,798 1,755 I.W~ SO 871 1 1 2 Atto-tt 15.m 1,752 1 CA-- S.(I) I-) ...... 2,M 2,056 12 SO.236 1.783 45.26B A-- M 026 13.Ul 2.7W,W4 K374 32,M M 467 2.62 19 0 (wy--N) ...... 7w 87,496 124,~ 31 12419 124.189 MY 15.025 I'll 2 2 91:010 KNA. DlItAI, (~(rt-) im.80I Sul 1,2511154 91.597 Z11 55 Z., : ...... ~CÒ*Wà)dò), ...... 26 (Coor.0) SJ:711711 ~.741 M7~3~14 2. 213 UM. ~.k - Utl,, Rlo~ ...... (I.-) ...... 30 3m 21 " = 71.562 475 "191 N 4- 0- ~...... ~ ~ 1,017 1,017 1,616 1.,0; N~ M-...... (Looo,l M:11 341 13.142 19M 4 w Ok- Oty (Okl-m)._... Oklotorr,,,Oty roil-) 61 6XI 255 I.M12:31"11 'S.".25, .1.93 - 1 S2 35 - . I ...... (IKI-) 17, S2,710 I'm 287.9W 2,013 I'M 1,615 W4 110- R.O. -,- 5.826 120,6641 U123 IM,170 IF Rilli" ...... MAT ZT55 M MAN 572,8911 16,11 423,4110 01 3.340 A-q, I I A—, 221 ", 66 ~ 31 . 24 55 5' 4~ So. p I-) 14 14- 11 So. 118767:,17 m 1,17 - 49 H (mo"IIII) IN 10ii 24 w '9132 4..'771 4~255 Zm I'M 2 119 llollo,It, ...... ~ (-V)...... (t-lA_t). 19 17 12 17,496 1.014 15,324 1.1 139 3 m w L. A,.I.. .11, (SI`. 0) - I SI82 ZU5 2.W72 11,.3S 3 e9l 2 L. AN". = W) w~) ...... 1., 78 w 24 7 162 499 35,&53 125,519 107 1,020 P- .. ~~ (Ma-)_ ",597 pt,ol ... Ito-) ...... 2~:Il 2,717~,3 I"M114 IN17~ 23 MIM 4:'I'n I'm 1,669 . 20 P-d ...... 2a~ 240 4~ 1 Q12 1.3 to, polIto, ...... (Q,No,) 59 867 1,922 i'm 4D.W 29.678 1430 27,991 25 m R- _ ...... (N-.)...... 68 WO 2.3 15R 81 w SO Solt "k. 01, ...... 75 5i ull 1.531 4~18 W!537 N 21 21 SAllFII.-- (SIl, 124,181 1 591 122.49~ M.814 1,502 M.261 Ul FlAlooco I ...... (SIIl (I) bIllow) ...... 4mlln l.2N 273 518.315 :169,3. 25,616 =212 SM W5 Stoot. (W_ N-) ...... 2,393 .5 1,40 1!1,315 M2 .,925 SlItt. IIIIIIl - - fw-wt-) - - ... - 92,IM 3:14' 229 5117 62,479 14,770 an, SIM 9 403 CIIFII. 6-.-., ...... c,...... 13,4101 4.1 2".604 21111042 MIM M.17 P-.R...... P.- R...... m 1 228,551 219,972 219S70 219,917. ISS 7 Oth, o- ...... 12,80 423 16.015 10 10 10 F- I.0IIl ...... ftpoIlt~ I ...... 31.- G-1., --tlp .11. 1. 1— "CA C-11I C,woll_ Wollestolo 61, ~ ...IFI, FICA," T11t,,fi1lW to G-t 01 GuAlt., _ ...... T,AlAt- to ~-,t of G-.. WIll,". F-.1 Flo,lilo, ...... wO.w oo. ol -V...... Ool to, E- - I., -o CIIArl, FoC~,-t I~ E- la-- 1. Il cm-o F.o.. I. NA...... 4 PIM-1 E*ctio, P~ -1 ...... E- - C- , ...... Ot.-__ ~ ...... ::::::: i:: 46.333 Ioil,o,l . .- - - looIl,

Ctl 1-1...... 121.w 4,W7 125.126 110M9 U 1-1...... I . M."it Z,M 2.281.813 762.131 !01.m 6".w 457.731 614 2.005 ,I...... &M 105.1m to) F',,...... 4W 2. 11'.6 1.328 IN 342,720 34,475 273,211V W2, 11011 p 5,195 2,370 2,616 0,174 202 27,936 W~ Y- __ _ ~ 32.9512 9,745 221,- IMM 7.607 107.299 2463' (t) - Y lk u9m, 2SAV 1.438910 2.269 125,924 MW 14,W 1 1,260 (d) Oh...... 2,325 1,693 02 67,239 .7.119 41 Otto...... M1.761 8,143 ~~543~41 1,369 26,242 jWM5 M 1,117 ...... 230 9~ 62.7" 62,613 1. m ...... V705 Sew 2,01,Q Ill SM 2,071 2,M 14 141,276 1.753 IM,251 (9 1 ...... 4M,M 23,722 ~1,122.5311 175.97,31' 32.624"I 2&4v- I'M2,624, 119 1..15 242 54 Table 1-Continued Table I.-Continued 55 (in thousands of dollars) (in thousands of dollars)

T-

T- -

Tc,tIl C,P-.,

(25) (26) (29) W) (31) (32) (M) 434) M (M) (n)

U.- SIIIII,. -1 ...... mat", ".am U1JW SIIIII, ...... 6,487.421 4.214.147 101.402 suns "Onees 251.2010 IMM NO". 1.1.05 '11", I. 4218, 391.797 122,613 1.05 I's,sal MAU312 11.- -.052 s3 Al., ~S- (C) 5,sas 4.903 99 244 1623 47 ...... '.) - ...... 10,402 6.878 216 627 320 2~301 2,252 3a 13- 'U-) 4339 B- (M-1-11) M2.2 39.2W 2W 5. 1.777 169 8,210 1,.17 99 a-, ...... (SI,I (c) ...... 18M 13,795 o9 820 2616 2 717 2'oll 17 BrIo ...... 1. (a" W ...... 17,997 22,.8 2DO 19,398 3,911 17 1,492 8.~ 149 Eu., ...... (il-) ...... 3,0W Z933 33 56 16 - as us m ~.d- u,,,n-cUt) 31i 318 H-ld ...... (~-tlc.t) , ...... 176193 17.275 222 85 856 7,137 log7a 51,726 4.n4 III) Al- 1 ze, 445 16 ...... (c) .1m) ...... 72~614 11,213 12 411,146 5057 766 7~419 3.5 3is7 'IN 2.,2, 119 271 "w 1,185 I-d) 3.1. m 19 109 1.- se 1,M2 Is "1.920 uju ...... ses.041 513,112 210,271 03.027 14111.540 Us" 1.555 a.7.7 a ~Wryla. I D C.) A D C 89,727 37.saD 515 48.673 741 '.77o 467 s'- so 271 14 (Nm J-q) 77.595 45361 5,201 7,e9o 14 781 eso 3.510 lo.669 241.. p l."PlIa ...... 12~~ PM-1ph. ,, I M 763 U5,685 1.126 21.622 118,5n 1G,763 1.722 12.024 P=gh ...... 1. ~ P-.'p ~==-= MAN 2..009 10.117 4,611 IO,W3 52.92o 237 25,084 163 ...... Rllll-ol Mill I.) 688,74: 3 ...... 41,219 181mi 11 81, 2.112 17,47a 1.03 8,1`52 135 'D.-,.) ...... 2.835 2675 1 16 1.5 22 26 -:.:: ~: I.w a RW ...... I.M.381 1,322.MG 16,611 ~ I...... I.... .I I =11,259 152.098 1.123 9'm 42,437 15,114 sju 18,435 1.045 All ...... ~. (~qi.) ...... 103,159 98.028 (G-gi.) ...... 36.5W 23 M2 155 751 11,487 25 2% 11,187 2U &-g- ., . (Alat-) ...... 3,971 3 70 51-1- 37,356 15 In 6 1.957 lo,995 7.898 1.066 7.m 151 cd=...... (S~ c-...... (a-, c.'N-) ...... 23.274 21,526 a 276 MI is 753 141 Gr...... Uro-) 1,222,628 an G, - . .. . .(140,11, ~-M) 58,95, 191334 63 2,167 7.250 63 74 13:MN1 264 J- .I. =- 1) 240 ...... (m--I) ...... 13,123 9,495 28 1.86, 9,11 97 411o ..971 216 J-vi~; F-) ...... "'% &M212 rb,,d,)T ...... 28,486 18,M ss8 1.162 .316 IN 3.615 15.067 Na-Ill ...... na,,,,~) - ...... 3.222 3 -0 - ...... 28,501 13.m 3D, 1.5% 5.687 6,M7 218 0364 Is, AIM ...... 392,691 I,- R...... 1.351.07 41111=2 $.'Is W`09 421,1154 U.743 .1209 07,042 C M-1 ...... ::: :, : C 33.1.9 17,614 56 "Al 3.2W 7,561 143 6,700 "1'a G ...... (SI,, (d) - IseI 457I c- (S. (d) 676,452 229.117 2,307 378.698 51301 14676 351 26,w 192 N,t-t (-,n .. ~ ...... (-h-) 424.196 es.852 595 -5.W7 '35173 7w 3'o76 9.893 I-) ...... W, 381 I-p- 72,4sg 311,134 so 2.064, Z5.9"a 3516 2~737 14,483 M7 L-1. (K-ky) 391 NI 3661 L-Ift A-Ckyi ...... 129,989 88.89 5.052 qsq~::~: in I= 31,305 as 9,472 N ...... 159 89 P.1,-' (W.Wg."') 15,392 "3,02 12 177 1,276 10.955 4,3 2,olo 52 3 All A"- 944,117 1.2 9j93 '.,aN 211,..2 "As 111.2. WIn I.= A A-- D.k..) ...... 900 6407 31 a 2278 277 ...... Be 2," 57 Chi,,,,90- ...... 473 450 286374 6,080 s.179 157,058 lo'W 6.4o 26M2 211 ...... 41,01as 26376 112 51236 8.2. Ise .7 8,861 F.rw ...... (N.. CAll-) a, F,,,, (N- W-) Xo 34V 19 201 605 20 2.698 '69 oM-I-k ...... M--) 93.698 68.637 266 Me 22.808 49 1.252 li'm n ...... 15.8341 elm 20D 20 Mal 5.uo 266 5'801 so at ~~: ...... Al-i) ...... S L...... (M-1) ...... 96.3n GOABD 1,313 3,187 Me 22,651 335 14.118 11 s...' ...... a, ftO ...... ~ . . ~ %525 so- 1,335 1133 7JM 11 9,&6 s.m S,r,,ftW ...... sg~'Nfi.ld a ... -'- 42.376 35,331, 37 .518 61865 281 37D 7,701 I'D 219 ~' R" :~:: ~:::( ...... "A") .. .. 1.002,9111 11781.46. .151.1 I'm 45,215 Is.- am 1151- z" Al...... (N-M..ic.) . 15.704 14,812 N 184 660 A-t ...... 5 4.695 151 219 -11 ...... (aklI (0 Will.) 994,252 N3,ull 32.976 96 ..am 4,015 8,761 ..652 W c , ...... my"'g) 28,673 27,- 26 12 111 I.o53 76 3,85D 78 Will, ...... (~ (1) ...... ni'536 322.245 10,993 1.232 15816 71, 539 32'N2 461 ...... s3- 42.192 6 Ms 7.599 3.363 Ila ..a 240 -1. R- U111, ~k (A-, ~ ...... 3.631 32,M 29 59 2467 1n I B!" 6.927 21o N~O-.. (L--) ...... 131. 16,849 479 22 2,60K) 1N .7.072 8.w 252 o- oty ...... o-c - ...... (lNI-) ...... - .5.31, 321.609 8.543 57 w~- so's 5.2e7 259 Mass 322 WI-...... (K-- I I W,763 GO 431 223 1 n z555 241 162 9,a71 220 ...... M.172 141,11. w'sa. 1.112, '8'm 11.2.2 1- ...... A-1g...... AI..) 258 1 3 12 17. 2 398 z!,*16 A-11 P..) ...... ON 2.1331 128 no 7 1,- 4,= 147 H...... 3,937 1,227 1 31 626 2 ON 43 3.06, ill ...... 11- ...... 1,717 1.271 313 96 37 ul 32 L. Ang. ~ w - A~ ...... 446.00D We.- ".95, 32~959 29.329 No 6,708 26,318 71127o P- ." :::: i(~-) P- ~A-) l.MI 2.9sl 141 .'jas 1 43 4,1se pwl"...... (Xw.) ...... P-.- on"') a's. 1,4611 as 453 57.938 4 712 - 7.658 2. R~ ...... (Nll,,aU) ...... R...... (N-) 2..91 2,361 3 2D 47 w 3.om 131 SO lsk, Oly ~-h) ...... Sell ulk, CIty..... ~ ...... (Ulah) .. 15,672 6.21, .1 125 765 3,519 5.Ml 8.25a 113 Sll,, 1-0 SI* (I) I-) S., F-- (SI. (1) .1-) . 25~.70a 231,69D 6745 2.210 7.68c, Ivo 1.70 U 316 m swftw (w s.- ...... 116,512 14,247 43 no, 99.697 1,283 ...... 989 6,256 232 M ...... IM2 1 so as 5...... A. ot...... oft, ...... 1812 I'm 4~ 332- 22' u,,cswt:IIllll: 59 F-I ...... F-I t'. d-W ...... G~-, ~-V l,s, ~ It- RCA -ift -- ... Tr- 1, G-- ol G...... : - .' I - ...... w'...... C.-, -10, E- - 1- -1 c=o acc- 1, 0- --- 1.11 - .~, F.- " N ...... wd I-, F- - AII...... II, d. .1 E~- F ...... P'-Illl E- I- I......

T.- . - - - -

228 f. C-11- ...... 700,708 6N536 II'M 35 169 37,00D 026 6,411 all - ~bg) 20, ...... 515,827 323.713 6,116 .6" 10,923 lo,wo 31503 320 13% d~ IIN4:17, 52.559 272 65,463 11.896 816 1,872 15,M7 30 (d) o",. y...... Ass 601 246.731 2,363 m.189 5`156, n.26D IN 32'w, 350 12,301 '..Y.... 6,l3.661 408.69, IIM2 2G.23I 128,528 63,70 .No 37'108 277 236 (1) T...... I.N5.788 1,26a.081 43,91% in. OD13s" 4J26 am 77.314 1.052 Table l.-Continued Table I.-Continued 57 (In thousands of dollars) (in thousands of dollars)

IIIIA11iih, .... Cio.,Cohl. h1ki,oill- .- -

Neeel hd T--C- -0- Thhh- M.h. - _Ohoi - `,il .."h" Co. I (S_ hiie~ by -.0. To., ie..~ Ch-o' helt`oh~ CIOC', . .1-gie U.- IhOA~eil 1. ~ ; ICIO1. W, - W, Ihhh,i PIDPwty - he Iew.) by W, leolChelie by 0 0- W-11 ,_Hhe W) (0) W) (45) (40) (47) W) (49) (N) rs') (52)

U_ Ste,iih,l ...... 3A.W 512,71. ..301198 97,495 "'911 ...... "A ,_ .".o ...... "CIO 10,972 -X2 `711.3 U.2ft 3,133.521 3.011.5 3'"1 U7.649 IN= 13.4911 m 3! I A 22.419 4122, ... SSWI AV.533 A Cehy ...... (Sih, (i,) C-) ...... i 1 W 732 310 1 21 ...... AI...... 2.061 I1 27 400 3 16 ...... 1..$ 211 297 5822 22 13 76 11 .2.007 ...... 2Mn ,I'D . "1.11 45 W 1,472 B oh ...... M93 '..W 6 23976 - 2.9361 SXI 8-1...... 59 1.mg 11,764 SOe Deh-) in Cv. 1,177'. 4,190 591 AS B-...... 5' 219926 16.4135 7 .753 1 51 46 23 585 1 , 0 3 M .5 78 . Co-h-)'ih, IN 3,718 25,117 5;4' 1,,- ,M0 ...... 2. M 10,515 "1.2 in 1.10 90 8,14 While- ...... An 2.957 204 SM 127V 2,7~ 9613 16,521 42,639 51 11-h 57 2,ES3 12, 2A 21 P_. NO,i, H11Ih,,) . Rh.. 10 .7 ..'"783 P,W- 137 1,83An1 S..2 "M 1.,06; 131A," (11 " ") ...... ei.310 8 13, , he Ah wCioh .21 .5 536 .1,413 wji. AD C) 1 n S~ In Mw AN .5 3M 4 4 21584 7.M` 21A ~ 312 116r543 M 0 4.726 N-11, (Nm J11my) 80 IAW 5.74a .03 P led ...... (~ (Or b.-) ...... AS 191 I~m 191538 182,596 . .0 11.570"1 :"IC 45V2 12 W2 123 3731 ...g...... 1,531 23390 193,740 4.525 11i 11 511 A 3.882 245.952 ...... ~ , 3W 8.426 31408 V.0141 271 16 1716 111 1.114Ain 4151 -87 283 WInIgh...... 2,206 99 - Q 19 "M310 'a' 6'9$21 M.761 ft,-iiIi R191oih ::: 2 1:047 45 me M2 37.352 3,111 ..."1 'S.512 '"A" An .1 181"Dii nju sohilthee...... "1 0,341 .1016 5.345 15,245 . .937 A I...... * .. .7 28, !OD KOSS M3,451I 2,26~ 917 Allen. -n, ...... M4 7 1M2 971 .1676 25.5M 76, 11 .;A.11 ",41746 a Mg n So 4:425A 73 in C8~ -23.1165 Col.- SoWhC-hA).. 3W 4:!. ~73 181 Coh-M ...... (So~h CiiIol,na) (.hj, C.'oh.) 5951 12:401 13':2'1 4 22.IN 655 138 1.:211 1650 4,793 Go -o ...... ~h TO 20140 1.37'1M .52.. .,,In'M ...... 0 M 3, ...... (.oholooool) 91 2.357 48 42 1,03 533 13" HUN iS.367 205.174 15,35 - 5.2154' ja- ~7A ~.11I" 7UN ~ .7 50,118 7277 3,0 12:.211S 1,900 2.1511a 1~094 21. N 504 07 :37,342'a' ,-1 R,& ...... 1.01 aj M13 40,537 1. 1. 3,03 41 14.945 C-od Rgloh ...... 117, 31.910A C -- I ...... (~ (d) CO-) 562 W 22,01 13 In 1.368 13 743 elm US.627 158.042 c1ho.h.h. ._ ...... isill; M .271 149 .6 1.274 3 7N C= ...... (sihe (o) W-) .5M 21~:l. M5 114 M.231 5, 1 Cl-W...... (S,h,(o)CA1M) ...... -267 9,062 DIhCh 17 72259 Min 7 3446 _ ...... rwhwh) IN 1,637 MI,365 20 905 D.h. im 11,020 '71 2AU 15,~ .11,W5 ...... na.7 13, M:v Mmi 4"311 W hhh-",O ...... ~1-) . 102 7,932 .14 Lo-OW ...... (K-ml,y) 27' 9107In 56 092 2.859 270 28 Looloh1lA ...... --ky) ...... 1~358 4,419 33 3,230 39 M 49m .224:'MI P-..." . I VI'vi,m) . : ::::: ~ 3 1745 8.U"i 6,328 114 5 ft-g V".-) 7 1,482 U 84 217 ...... ii,00 -.3. 51 1,3410 19,W 2SM hi Ree"" ZION W 45.1157 5294 8,4U Qm 3I.S" 72 C`1:'17"1 !,13 476 A-- D ...... 1 , On C..,.- . S. (b) Ce-) AS 25 IN 321.642 4.109 225.Mi3 ID'SM 8.699 C-go. 10 ...... - - h-) 267 %1MI 2JU 3M, 128I Gio 2,179 3.891I A 11.200'I 10I.Q0- F,,W ...... (N,hh D,k,W) W NN ~917 530 11SS A Ila 21122 647 .1.?U low, FAC, I- O,k 111'247 n "I'D ME. 18,431 1,282 9 2. -.keir f.-h) ...... 2. I6772: 03 912 9,072 0- "37.I 273 win M.Ow 117 - 42 Ohie... (N-) ...... 523 S ...... 1.212 12:m M7.288 107.908 190,- 1731 13,2M 94 2.9311 SO M An .?I 5,S 8, St. -.1 ...... 1a 6.512a I.U6 I.Cn 12,074 W,~ S PAW ...... U9 118.1 2.M 93,298 4.262 ST St. PAO_...... (M,n,AOot,) ...... 0 .Ch,V...... (Sh, (b) 1 71M 15,43 5~992 - 'ohog.1d (Swo) _M). 0136 1,135 1.792 "IN 3:02 10 2n I.., 1.11 32Al U. . eg ...... 11.612 e, 117 2,UZ431 0.976I 25517" 4,1292 elm P,.C ...... Al-o...... (- ...ico) ...... 2DO M4:1 n 250 - lit, W 3,S2. 1,312 0m, 1.01.04 Amon ...... (See (f) -) 01 56 21 7.400 .7.519 (liqohohii) 5 269 1,210,770Ilu 9221 42 T M , SW S- (1) 17; %15 .37 13, 36,1IS 4AM1 W 31 . 3 chemh, rw~"g) 3.2M 1.153495 431,802 16 ON 21 AS 44~95` l'S'AC, C""""' 89 SMAW 12,209 1. A72 2,878 4 D.11A, ...... (Sm (1) 97 101N 2,362 1,414 M8.U3 t1SI,256 A All, N.914 47.679Q M,- M'i A5" Dihn ...... _ (C--) Littli, Rolk 251 27:~ 1 1, We 3 26 3~4111 257 W I.SM 1971MI 1.3M 1.72934" 4. 1311 N6 IN - RKk ...... (-C-) 5~ 3 04 55 97 21,311 175 Nih, 0-m..... (Loisiam) ...... Nih,, OlA- _...... (L,,,,m) 77 3,59, 107 W, 37,451 6.0112 Oklahom City ...... (OKI,h-) 1 439 OZ 711.437'23 :~20 1 40 2,120- OkLCW,C, City ...... jOk4W, ft.hh ...... '50 , InJ67 ..045 W - 20 W,chha . ~. ~ ~.. 126 1.2116 652.419 561,589 OW- Flegio,, ...... III .399 INS I nzn, IN. IZO43 1811" ...... ~.. i(ehlleii M1 12,D39 73 227 W,098 W_ 0iCh ...... sju 0.910 2.9U .,Tn '01.630 372.3W.'"2 3~ Z17 12:~l 1,976 5.652 409 34M AmW .A ...... 14 1 317 117 42476 ,460 13 012 H ...... 115 2 8Xt 3, 1M 14, - 12 I'm 2n75 ...M ...... (-.h) n7 2- ilit7 ...... (Mohha.) 1.2. 35 50 2.0. 3,97. "'Al 13 USIN 1,1,441.1 A W Hoh I...... (I-1) An 115 173 "1 L.AhCi, ...... (Se,, (a) 'M 270AN 1276 n7 79? On,1:1, Lm AN ...... W .13, 3.1`06 4~~11 411 17 :.71 1.,10311 9; 94 191.M 0 P- (..-) 29 19 "1'15' :643 4.W P=,, ...... AN 77 lo". 1161 1,2M 14! I'm P-Ond' (C,".) 7 ...... C...... 25n7 1 2:3915 1 AS 702 5,.5 193 245 187 .109,311 383 ~N- 0,142 I 67, 57 ne 209 -79 Seh L". city ...... (U-) IV " WI " 3 23 IN ~71 UtOh) Seh Fh.- I ...... ~(SeA (A) 1,051 5 61 112,~W BAMO 2. 97 2.271 2,463 Seh"Aho-, -n at,31 3U Seehl. 20 1 "981r- 2.1.- 3W NS3:'IN ...... (W-gloh) so, 437 U 247 NAM SM7 I,U6 266 S.CI...... 59, 4,672 ~01_ .0...... 1 All .11" 12.7311 5,272 Offhoii Owshoh...... 144 65D 1.653 .10.051 ~- R- ...... 8,5182 poe", RM a 10 10 .1. -13,91S 1 57 28,145 12,738 5,270 CA,12 3 9,31 ...... 1 7 -14,010- F- Opo-i...... FW-I ho ...... Geeho~-. 61. hd -- FICA h. Ac- ...... 37.8X Th.- 1. 0-h-1 of G,ohn TO- W G-Oht 0 W"hh,0o` W" 01 Fed- O"Poy'lei, Whh.ol ... ol Fooehil -pI...... Cleohne I~ E... lCoOli 1. C.'" -.. I., E.- tio-hoh'. .d .- F.- Ano h.~ ...... -At, Foh. - N...... ,--I Eleohoh Iono ...... PIM-1 ElKlion F,Id ...... _ ...... _6 -_ I-- C- 11 ...... Chh., ...... Dole, -~ ......

1-1. 1. - ho. - .~ I-,. le, - - - -

C "I ...... 3.150 AS DOW M2.!V lN,"l lW.C9` 11,737 (.) Uhl- N el 11 ...... 1.0391 T4 336AW U.10 2M.092 0 8,113 24 21111lii~n3 I SW, 95.283 47A,Q7 Nih,, 2.I 10 13 D74 241.S17 1XIM7 .218 13 lV 1,= (b) 111- 7 'M '2:2515 "'. 16,107 N.360 (d)(.) 0.0 , 00 SO AS, 277.315 51.360 I'm 1,434 (C) Ne,,, Y11 3 5v n5 17:1 5 M8 7.,143 (d) Ohio 34 .1129 ~.1:333 315 2353 205,639 243,66D it pohneh"Ne 1,871 3, 960 258.05S 50,158 1,431 W 558 (A) P-Miin ...... I...... 6,575 VAN 1,737.171 i3jal 117,007 S~ CAS 10 17 11917 169 5,269 185,501 IWMA (1) 1... .. ~ ...... 273 aj. 2,799 "Ma 1.51 I'SM 7ACDSA 58 Table 2-Internal revenue collections by sources Table 2.-Continued 59 (in thousands of dollars) (In thousands of dollars)

SoohFainal-ba ,on 'Ok illoannalbabina- Im ...... ~AMIIIQS 612,375.rT3 Ea- ana'a-Cahan- ...... 111.7.816 n,379.610 ...... arra"A"a'a". ari aboaral low ...... ?M1,4111 11.4111 b,;bnnzlnl~ ix~nwcorne h, L ...... , 525,066 4,218,147 an-abloarobbyrobablon, .-I ...... T-="h"(I,hohy-h`.'.`lC7-or ;I; ilabon ::: : :: ::::::::: :::: II ...... - - ...... 1041,11,17 1N .02 hal...... I I ...... 61.248 1!9 M,469,= ai ba,t I robbar) -11 ,baa, I~ thold h,bloal: Trm, MgrniAIy t- 10 Cwts c~~ pb~hd. ob-, 5 cantral bar Ila, Oti,alol Aol FICA I ...... 297,M,1n W.!!455,U6 " oIAW excaol Farrah- him (o- R onartabriamint, - 11 ...... Z- .93 2.SNI %I than - on 1a,;nIay -idab). I Fara par oobnd ...... m sn 05'.0 Unarnab"arn, -hr.. nr .. .. ~ ...... I- t-, 10 -F, . ob ...... - ...... zm.m 3W9000 Thai ,Ibibb, 5 c- - bo,,ro ...... M,720 26.870 ...... I...... 11 1. .. .. I ...... S.W.176 4,20.247 wt., ...... 22,N1 2D.314 bor ...... ".17 1111110 MAN -.4 .-" bo,II b.n,. .. Co.-,. W. aboar". "W"a "I"m H.61II'm 1-oth" Ch- bod-, a... 7 -.1 Ir ...... 30(1 ...... S"'A2. S,7..,. T-.. and In-a. chaaal.. bob.., -.. lo -ant ...... I...... SGS'aht S531- Proa aW ax,araonab~ for I- IN brow. 8 mcmi Dalb. in tota'...... I ~. 1-1 - 1 3,945,034 3,N5,377 %tm ano -m, 10 mcant ...... 223.721 2U,S52 hilon. (coh-ool to, C..-. har. ... . d-1.) ...... 696.M7 M,314 ...... 17~5437 Mim - ii .. =-, claah., ... 10 par- ...... Db,h-, 51 O,W bar .19.1. or - g,.n - ...... 3,212,731 3,289.366 no air.-, 11 bar- ...... W,418 m'"o Rechrob-, wbboban,. - Voof g- ...... 5,mg 6,222 In I- lot- ariah on- - -ana). 11 -nI ...... '' ...... SM~e,hk aVgTmo!w 11 W,wt ...... 2.3 ~a' robaAactinina of Spinal. $25, 11W. $1 DD. or, tnaeo, ...... 1.1 L ...... 1. ..Ibara: Finn aconmy. swiY w wo :21' 251.2'Sa - - 20,M bW gahons, $1 10 W yraa~ -1...... 4 2 Oth.rn '? X M Proof gairona or - IQ21) pa,r noor - ...... :.. , ...... Uhl boale, orrolleal bona, mnia. .. a-), S. bar R I III. bar...... -.. I I ~.... I I : :... ~.. I. *... ..*....' .*.*..* I...... SU.291 ". I ...... 15,2.W 16,7112 ':~ :~t nh pIm, 3 canna pa, ganion ...... M.I. man-ra -. Obbbrad abno" - .. 11255 ban ...... 1,2243 1262 10--clZ-hanar -ho ...... 10,720 10.8ila 0 Who. W ba, nah_ . -) . -1 .- In. -Fa, 7 an. - gall. .- ...... D- bro 1-j.1 araho, 1... 4 "Its bar pli (in .- 2 cant, 35~920 3SQ6 Still, or conaanalara oborrf-rant, $22 eaon Ch- I, ...... - gallon) ...... WAS, 512.716 Son"es, -,a . ino...... 62 203 hilboa,11havou. ad. W., lai ...... 5 winew. III ...... I. I. ... I I ...... is"" 211= ...... 3M3.03 6.350.198 I.-. (.baaFIW in, C-loah, hin. - Aaa ...... I ...... hanta thinno. 2 W.. h- .... ~. ~ ~ ...... - I.M2.193 x = 37.179 Thanialortarm of pa,lom by air, 0 wmt ..~- ...... 1.117.iMl OF-..'arborIont(sra,arhaa, 17 C,nbl, 67 -ol. S2 25 bar ahha I;Iloo; thall kh1p Innes. M 40; ibigraially 162.5i55 174,314 Tranitabata.. of pmmAy t.272.003 1.565.071 n., $2 10; coadial., 51.92) ...... - by an. 5 berFlI ...... n OD9 U,971 Ura of international b-l botiam. $3 M, Mm, - ...... 71.6a, 978% ba- Laboa, -1 ...... Conn-obarabla gionang on-aa. 111250 W dwoa W him, ...... 4.867 .=ngtu tar. UO "nobarb. (For .1. c-rai .1. ... . borraral I. ~...... 36.5" ~rc. 39';~t barrar e 31 9.11 ...... 1,467.07 1.508,543 we 1,079 Co- honin WIi -12 9,121 10,972 Liaa Inginanty -.1. ~ran 26.000 bohnnoa M Far 1~000 than, (amanalonant Lin, than SOO .-W. W ban ...... I I P-II,an, berhati ...... 251,"3 263,272 501 banali, or - 311. - I,...... Um M. oh ~i nonaft, S25 - - In, an -.-1 2 cants W poonat on nont- anginar to 9 nna, 2,5130 gibano, or 3 1/2 can% bar ob,,rhi oh WM.ne ang,irn, hoInrao Rlialabillaral 1,907 I'm F-o"""banal. nor ...... 27.741 17.M $2 . .. 1114.~ - -In) ...... -baroonal .. ra ...... 728 1.093 lorbinial. ba-a, -, $123 .1 Ina, ...... ul w -1 b, I bant. boral 0 r-uh ...... SO.", 74,= T w...... "w. 'd E-1 "A"5517 Irrit onaharath, w:56 W.M 2. .... 4alman' ...... 652217 M.280 ...... Z454,8171 2 402,M7 Sell Faakm 5 barcent"b" or, aad4balih' I"i ofiM,666 oi i*iii paFmht- foonaabon ...W ...... 6 E- W=-,holonip 5 WWt on loonothion ...... I.An" (Crania B). IS 40 M It 112 MNS OV SI bal thCnArand hIl to T-I, U- 10 - 24 67 2W4 fincinami & fraction bmani -.1 Iroati.r. 1- .1 45 000 or 2 112 -.1 ob hA-b;W Paphy,,anni ...... anional'a...... 11, ...... I ...... 1. Iw 11 1-1. Flk,rFail.: 0 =Ybroh.1'r1gionbra. 11151-- at nna. 110 bar bay . to . -ann, on 55.M ...... ciolahi ..::. i: ...... 3111'J"Ils bar- ol Urlaboranthaaa obion, .... = 1,Ss? L-m- 'I'Dan" ...... IS - 31 ...... 1.~ 976 no-1-111235MlpI,tha~aiaFF,8112bahoant ...... I-5 lblLhannaI I in I I , -1 1 I 1.00b I 31 'M Z13166a ...... Inbb: ,..-banS2~2SI -t sn 34W1 4775 EannoInia thbahath ...... 3 2 Shan 75 - - -no p:::::: q ...... I . 12 :m E.- -b.-M', " -~I 6 pI,Fahn of ...- m .ibboana 2.050 2.8" phapaninhan Is ...... 23 13 Tw on ~dbhtrihb,,"" a ...... I ...... m 69, hapoh. Whi, itianar. - - FqWh. by C.1- at. bb~) ...... bob, . SO --h .' -ath-to...... 116 'm zoo~ 2,11! "robabliad thanaachnab, 5 banobho'" ""'.1 ron ...... ba=o., ...... T. on a..- Fonarbontron...... 279 .2 *:.::. ~:::: ~:::: ~ ~ ~::::: 1..57 FIJI- to an .-0 Inan. . .-nl .1 ...... IS m 10 -1 harah, 5 ~-rng ol-Aanoy ...... 261 672 T. on --I--.-n.0, 6 ;a-, .1 a- in-l ...... W-- $1 bal ...... 61 S3 F. a. bray . to 15,000 25 '11 F-9Far.. to '_LN, therhant NbaWb "'iby -,.nS' W bay60,17-o, I.6058,SS'ODO$10 bar, lp to $5,000 I - $1.tob F1 I-...... a' 306 711 Far.. 1. F-d. ""'IR. $10 - lant, ...... EKIF, rq .- -, hinin ...... : ...... Waarall T.. on 1bti ,inhohnnah, 25 oarcent 0 Wai loathing e~b-ahu...... Chrrar"11 Phorna. W Parcana to 7D bahown ...... - ...... 3.051,719 Unbil a.- bal ...... - ...... 125 270 ...... * ...... 72.126 3MI.076 Footnotes tor Tables 1-3 U1 m Table 3--internal revenue collections by principal sources (in thousands of dollars)

eeii than sSad. and then Under Via Tai Redualbor, Mn of 1975 Roh- (P.L IiIi I-- W 1075 raw- - ...,no- in~ 1. The remidde in RIO riaidue, andual ad hat had- allowed to 1;W.OOO and wormil W noolaid to 20 banown an arat $25.000 W bould,lb, raccone. Tinalle hangle, anare Nowel - burden or a- . obarq, wed-ohis are -W In - - b-"o"haeodand, al Nothen wani. Far-'...Va." "'"Naw by.the Renwele atlemenent Act of 1975 (P.L 94464) to Auna hationg by weapid,ahl'o-bed - ... On.- 30 1976. tor 1976h.- at - damigned . miatherne - hath Tolial Con"wee", ladn"anal a- edy in.--auldiddeft., - - - awarnin, at lhaw~ TM beew h- and big- -. Ounhowl Aww law, and Empeopenne ft- - Al-we Tabatool" - N-wl .In Im by Me To, Ralb,ni -1 If 1976 Taide go.b..... b.- Plot,- - habi heIghborring bantem. Moananed law- ed. (P.L W~%) a. Wough 1918 , 1. T. Realuction - Sell, 2. Ind- inaelated beadhade, - .1 whinnal PlIthownin - al III (P.L 9S-3D), Edeatem far W Ineare Mgftrn~ I'd) gandurations. I "num, 1, 1979, - R.- Act .1 1078 (P.L. Ni (1) (2) (3) (4) (6) (a) m (a) (9) pailed a hea, late atruakire, gradeeted harn 17 dercient 46 3, 00lowtione 0 indhidual brobbare W W Orbital wandia ad- to '0.6,2 09 3, 25a,36 12.5"02 6.700a 5~16 28 G76,V2 2.626,10 1.165 519 922,671 2421,- age. aarniaa. debabillry and hopftl ammurnerice, Rude, on -I- parcand at aeout,le - whi Nerinaled the hanneig no, ...... 39,1 08 US 29,019.7m 9,676,4M i U3 !n7 1'!'024,365 779.291 2,-JQ 1,237.76D 1.4251m 2,147 111 and - earage- ...... 41,861.542 31:1711.11~ 10.171 410 aI,N7.781 2.381,U2 1149,345 2,255,V? 1,31C(),280 1.60.231 2,206,823 ployalent inaderm, (SECA) Safterty. and call, kam 0 nontional a "J " 29 Sol .3,659, 84 2.476,113 796,538 2,210,607 1,321,875 1,771,= 2gW.9W I,.- ounia OhMal we nad- in --d whoon. with 38,167.- 28,007.659 10.15SI,351 47~a`l151308 2.6N,575 706,227 2.219.202 1.32a- I.8Zl6,OS3 2,-,NI ah"go, iunA,nbra. Mislaid, and harephal Ondw- doone (IFIC.) 20. Indendual incone. - Rd- Ell-- ~nulbi 1, 1965. 1- - ealariiiii land wagea Esheiah- eaboared. -I- I- I. Wild reaft Orlin, 14 percent to 70 par~ of handOe indarne. A 50441.636 31 -.en 14,367,569910 ~ N7.309 3,60.479 729,730 2,S46" 1,380.396 2:1 677 2.392,719 in- 1. parown, der a-- ebrenar, - ' ft.. - w-a6t. M.DC9.586 W:711:11211 73 1~:1661'1'2 29 214~ 101 IAGI.26O $33 1.7 54aim S65162 2 U8.903 2.507.9M CnIbAbil no-he he, and far ounitnOO, efloodallay " hi- Will Aiall 1, two. III, wahridubla, Nad a.- 1. De- ~953 I.S5. SO m 5.. n 536,217 4,718,403 891 280 ':2 780, 25 ='911 2.1312.7811 2,647,492 pim ~- -. an. NION, 1. de and, - (qaaah"" a. 6:919.991 5`36001. 21.US,322 32,813,01 0 1.23 935.121 2,7M.012 580 m 2~68OIM 2.1NI Goe"Connal) on page I I and NO aled In obberang bar 31, IM. at Ine able --I to roubbo U. 91-WX .. 1955 W,208.02 49 934.826 18.-.720 3l,65q1OG ':2I 119 665 935,267 2,742.Uo i:571~213 2.855.016 2,0111,11M - to - 30, 1970 (-1,, La. 91-111) .1 . 5 -- in, . . I.. - -. and "'In mW Rae, - thern decontowell. Imbibed $E~ wee 0 Oj ;S56'7 71 ~ 171:111 1 IS 14. 221:n ~522 35XIM2 1.295 781 1 31;'l. 31 2,920,574 1.613,497 3 ISO 013 2,019,380 Table 3. W: 971 W SW: 25 530,W 39 029.772 7,580~522 2,973.19S 1.674,050 2.243,856 behown an net awmagpi up to Ii har 1979 and 525.900 nor 45 ...... 7%978.47S 0 20 533.316 U.S68.559 Cowl 38 1,410,925 2,946461 1.~ 021 3.974,1M761'aa 2.166,6725 4. aw'-lanahe- .. a. bon. and- Fadearal ln~ low. 1 151 79 797.973 58o"1.02'~' IN 744 8.853J44 1,M2,N2 m ON 806,816 aoSam oure Controwbare, ~ NO 9114,800 67.125,126 =.179,414 1., 545.711 11,1U.Sm '3:193,714 4.735.129 ':S`720l and =- Sbande. IunburaONO ol "w---toinG".Clual, 21. R.I. a, - we: had- - 'whuat. -, - Mi ...... SO 401,086 67:111,:11 21.764,940 46.IW,Wl 2:1 451 1,916,392 3,212,801 1~991'117 1,896,802 W3 582 and A,hiarlown So- NO aderaked M. NaAw nued hapantIa -Q. h, a- at .-agatiold: PuM. 1.00 89-368~ '962 IN .0.839 71 SO WS 21,295,7111 SO 61%594 12708,171 2,035,187 3,341.282 2,025,736 5,1 20,ah) 2:264,817 1. "-1. at I.-- 0-tione-Ower." July 1, 1 967. 14 W W owthent; Pub4b LOO 91 .172, Iffectine, '11:131 71:17. 7~~ .4 1331 U 52987,581 15.ODI 06 2.101.451 3.441.656 2,079,237 5 IDI~ 2.278.536 wry 1, ISM, 14 to 25 percent; 14 to 36 per-na WKISna Unu- 1954M ...... 260:257 1': 24 300:80 U.590.35l 17.002:1 2:41~6:303274 33:1111 2,052,S45 od.,S43 22:~ .5 5. Inaluded fiduolaby hanbehe I. downfin,ea of $1.8 bibion.i. 15, 1972. - Pube. 1-0. 79.792.016 26:131,334 53.660,663 17.104 532 72,634 2 148,591 6,418,115 453406 92-178; 16 to 36 -.-. Intel 1965 ...... 114,434,6~14 6. Baganning ali hanowl their 1957 " UM Stme, hatial " 30.1975, under, Puitac "m 9a-I 2 and W-1 111; 15 to ~1 ~41::Ilo374 1 12.'W,~ 30.834.113 11 297,5S2 2C),21(1,113 3,093 S22 3,014378 2,073,956 5:,675 13,a judled 1. Ohnneed indinnawal renane - derefiened to 36 M I. anwainne JuhII 1. 1977. under Public I.Ina 95410; 15 1967 815 04 288 IN 34 911,1125 0.370,595 26,95 241 3,014 IDS 1.171721 2,479 No the Go,noranant 0 Gueen in aboore- Nan the pronnindre, of ,a 39 -1 an.b. 1. 1979. leMir IFI,,bbc - 95~ lm'WIMJB79'9 Z141:~ 29.896.5n 78. 52,N5 2aO&5N8 3.081.979 4,287.237 2:107'2 22:2'77 1711:9'S~Wl' I7 2.1%,ado M. A aninteneal FICA at 12.26 -.. and, in ~ an 1 "I ...... ;35 775 052 M 337,646 S7,.O 406 33.068667 5W M 4,555560 2,137,585 I , 2.N8 IN Panic LivO WO, abohn,nial Au2. 1. law (64 Slat. 392). 1,, W- 06906 ao:M:Sse M,036,M ID3.651,585 37.449,188 '3:680,076 4,7463112 ZW0212 061 2.380.609 ju-l - to $19.2 loillion, tar low, ealibles and anegm, up 1. 1122,90) 1., owander tnear 1979 wal 11791 ...... 195,722,5 $25~900 tor 1950. ~'1;21 aIo~M711115:171713 ~'1~1:072 374 30~31%03 1DO.712,421 39,918,690 3,784,283 800.48 2 6. 799 3:179 IS 7. Indindare MI adjuall-ra of $11.5 nalion mile by the Dwoun- wl:732 U 925MS 101,2, 79.186 43.714,001 5,489.951 '110001' 2:'.7.M7395, 1.%21S ~N 3 a- 0 - Tl-,. n. (;IhOade Or negulm hain-al -,- I. hN. of 7. .11157.201 164,117,315 39 .5.309 1 1 12,006 52.0111,71IS 4,975,862 5j"9513 "' 3." " 268:M2.254 I P :1,1:1 1 46:- ~S126 SOI:6W 62093,631 1.1M615 5,358 477 22:Q727% S.142,15"7' 3~3,172217"d I. 8, Thai dlwha is fteghwao to repon all raniabbe 21.75 panallarl W ~lonftr yOam IOn NII I Ni Tw whibilea to 1975 . 293.822.726 42 14 097 No IS 437 70,140,809 ,m.m S.3508S, 2,315,090 5,516,611 O= ,-I- h taxpayan, heaking ouideft of tral areaWW'-wanIned by anna"Ohn,05.63%)NOI 302:4111,192 .71 75~1 46,7112.956 Im.96on 71,202,853 5,W7.4W 42 722 2 487,1194 S486,106 3,855,99 he linde"MI= SN,Akh, CNI.I. .1. darban of empas (hinted to larat 11,906.33 ofniontley 75 S2,7W 49:56'7,4U 9,809,905 31:1:S71 19 BS2,OOI 1,485,247 1':305611 622,821 No W7 boundle, to, 1979 widl 112,155,33 lb, IM), Farther W 139,117 2127::81:5 N7 . G00090i, 1 I 755 63 86.076316 7:4215:43255 55.4066M 2:390,5012 1-435,018.68M92 958 ON derawah, ahade to ban., unal In. Federal T. D- ankah. oil,- enholoyah, reanweentalree - .121.76 behownt 399:776 3W 43, .289 65.380,145 213,0511 97.291:653 38 So .612,715 4W.913 6, 5,681 404563' leh'Fl-D)a. , eye- a. Included I. - In- -. adaeoland on -No p.rean .1 -,n-- ne-ei In indalloon. . - 10~412,1855 37 .2 PS1733 71,447,576 2.1571:175:17 ~12 049,874 5,519,074 5,617.924 2 IN. 17 7.057,612 3 U8,450 for file whool in enich the l`TD int darcheal Hoehherr, imula, Ploarawalit W boned quart" by the Railroad Rmk-t Board ON 19 5,273 359,927,392 72,379.610 5, 782 28,330,480 6,498,351 5,704,768 2:.6.416 6,487421 9,911 Pannowne, NO Mt cbedithed by Internal kiner- dadencts (nor by ad anandead - w"Plo,ene and an"Pla,hea W-- Mobeld W. arbabbeed t aniCh lIcan, W dathhente relbi uno the - - -I.. -Transition quarter. ~D balhant le = to the deaMrher's Mbility Um IN, W" filed. 23. Empliblerhe of me or hare, parimord, h, each of 20 oweral 10. R--. . adia W-U. . - pald -g. or $l,W0 or - In any a- an int- - I-- On, N. quwl:r wed 3.4 PwCW on boubbli, pdh~ at ene,ea III, to twn goadone and manciang an - payrown, Niato, a- S6,DDO. ThI3 Ia. Is realuaild by Cneaft IN unarnandlant odhtr~ M-. unew One Federal In-- ~bhhhtudboh, Act (IFICA)~ butional Mid to wates up to 2.7 pairlient ~ FUTA IN. 11 D*aQhaa0habYtNMYw*0Iao0rhdn(rthm-tItM Zoodannal Eleatied, U.p.Ign F a,. - cat-tard, NO 24. Ph to noory 1, 1977, inew. - hane -an --W whourneCh~ Mainaer,to drein" do not affect WMM lability. T,aMm of h-ohn 3 ;.wO an 1. law $5,00() .1 -1 -I.w a.- 0 . orawara, harre 1- 11 :1 - . ~ dows only $60,000 1. 77 -na an dartion Inner $10IODO.OW; -0.1 didarlat wal-I-reg -1 collector,no-alaft. ght W. aw. On-'aartal, of th. eallow. .. abinalue, ba -,. arbardia; cineft ean a 630,DW) auninabon auti to & $3.000 12. R anne- - teoper, .,w- oubdonon, da, -u-the I., on danaa. B"inhar, --q 1. 1977. - Xn thane lou F-. ION) and IO4OA an NN. " -1. waderan, nobbe far and gifte Onee hearbaced by Ill. NO oubrowl. nNee at IN, gned"hal'"'.tra,b I a penownt W 70 pernownt. The ae". "...13. Ind- a.- diabowned to andai I-- - PuNt. rate xmgdim announits were replaced by a mailed areat of 'rgin Nande no the N-1han, liwined habrad, U;.50C, to M pinioned in - a 5 nOw dwW ISM." credit fm 19 0 ..1 U2,100 tor 1980). 14. Arnbunti, of Inter Renhou, taum coolatedi an nuarn, Raw, producta bereadmad to the Illted a.,. or -- - a. 25. T-. an .-pr lNubanobbee and Wnt I-. n-h. wead rada hatunde, dreannedi and expanded) we idnNed into Deamber 11. 1971. by III, Rwn,nu, Act of 1971. tne Theamur, 7652(a)(3) .I--0 5314a)(4)- If of"'I"1. 1.RICOrhalundern..n-onnin"MCode .1at 1954,"' Th. or- 26, Includes W9 wal 2 owi bar - -. - undarrounal. anduded in -11 coll-b- -. (Tatfto I menaid Call who ISO wall 2 pwown an eurna-wool coal. bodugh 1) 21,IncI, wile Menduent bahem an hane, Rhowledt by Pubic t.wis 15. Reamehed lareanno Janimi 1, law (P.L. 96-39). K 85~36, wal 59-44. AISD Includes legal and behadat 16. ROIN to Too. 2 - ohoporhante, Wushadion -. 1.1 he" -had!

17. DORN III hat W to hotel beolluee the torel,holudoe ne,11- 26, Rate Nas nedualahl 1- 5 bencent to 4 mcard an "hwaq gible -. at ball-fion. .. a- -..Iy. 1, ID75. to 3 Mrc,nt an January 1. 1979 and to 2 donceirt dr, I, 19W (Noric LI,O 91~51 4), Is. Gorthand, ..an other, it.-, a-- paid Into Madetmenae, "t Clabouned 1.. -6. d.;H t- - return. lewl. I. Retail. allacli. J.. N. low, by the R-u. A&I of 1980 dwa onemaky hirect annotan profit W ournbulft. 1978 (RIL. 951").

thrin19. C.- - h.0- - ralle: Ell .1anuarr 1. 1 965, 30. Tninnuare .1 -.he- gune, ar.n-wed fi--. N- 1, 325,000 of W inoo,- hanhial W of n pen,ant, net inable NO, WC.. SihD0 *&Ch~ bardear, gune Orth adholaination andoun wal S2S,000 cordwed nmml and! ourow Or 48 darbOru. rill. brown, and other -III hroad, of finalrele, $5 waah, 0- N=0f In net newhe deri by pothonal Whe ... [,,W an abounuflu-ners, waboOte, m dearem .in ....1I 11Ciloo--b-11han,eap" .1 b-. El. In a,..,- .. N. notalled In In. .-. .-h wholed to ;:q 1. 1968, . 10 Woont ON ...... rW eadi (Pubho - ~). The auroha~r.ieodd_:L he 31. R.I. ana. reduaied larn . arclan, to 2 deri na, donate. hwMat,D-wrtw3I,1969.byP.M,-9l-!". . ,Oaho Mphnul, ater SWulander 30.1977 (P.L. 95-600), ~- 30.1970, by Pubba Lee, 91-172 .1. 5 Mr... annual role, Table 4-Amount of Internal revenue refunds Ini.luding Interest Table 5.-Number of Internal revenue refunds Issued a] (in thousands of dollars)

IhW`vk1NjOnkx,h end I-- Ix- iihol wspiky- - -. - -- - dl.-, --. - ,nk=Nu=7.=W by .". N. .nv.-, -- Other, Giff ui~ keu Telol I Chwhll- Exkwi"uv~ Other Gm Excl. III- PhhN`w- (1) (2) (3) 0) (1) (6) (1) (1) (2) (1) 0) (5) Of (n

unlee Suh.. W.... ~ ...... I...... 11,055.507 43,336,11071 IISJ12 7,07 ei . W.- ...... uqA" 3,11440 21,13.1 2,510 se.m ..-- . R...... 6A.Alit 1,10,114 SAV.193 17.763 - '::IV1 IAV,772 MAU NO Apary S-W. ).. mas', AN,Y mN U" 915 n'12 "",T.r U3,3,S S, 618,219 W,337 15, 13 502 ...... m-) - .:: .~ ...... ** 21olm 2821278W `d`N517a..6 4S,503M 485 111. (M-) 375,070 3"n M6.195 15128 07 ...... (xuxsNcnxxNm,) .. - 1,275286 Son- ...... 2 us 199,692 1.0,19,149 V 718 ~.321 118 l.X7 ,.sel 16,331 lm8U4 63,402 519 19 1155, Bi .- ...... (Ne (,) -) - - 1,32DNI 133.982 1.14S.2 M 205 2.87a 5,781 ...... 2,026,775 ..N6 I.W7.776 UJI4 620 61 Buff.,...... is" W I-) ...... 1.353 Bull.,...... 1,4w 11:14to M.Na 145N I'M 115 1,852 (See N) W-)...... 1 1.511 65, 10.562 1.455,017 .126 116 411 1.195 Buninitt on ...... (vermont ...... BS597 U2 74,706 3.121 177 3 15 B-91...... (--m ...... IN- 1.577 1U,272 7,802 35 2 1 m .- ,...... (Conn-I-) ...... 186.878 657'sn ISON 1.7. 76 2.9 Haff,rd . . - C.rn.l..,) ...... I,IWM 8,244 1,044,N3 ..... 1,37D.893BN 119 ..-n.n Ismi 468 a, 916 m.-- s. W -) ...... 372,739 544.44x 1,10.973 71090 2N 51385 I S"e (C) --) ...... 1,456.981 15019 1,367,472 72.075 767 107 I'S'll 29jel -.612 3.6% 621 6 No ...-xe) ...... W4,52S 2,619 No 442 12.101 Pn,wJ ...... (Rh.....) 2" ON Pr.- an 4 iil= 29,671 175,996 . Su 207 10, 1W (Rr.. W-) U1.5s) 3247 N6,092 11,970 N 9 166 Reff...... 7,O=9CQ 020,715 01.9119,71111 MIND 17,442 574 .1.012 ...o.h1k: Anion 101.2 3.378 Wn plyse.70 .5.005 ftlxxxx. .&Dc) 113,418 1,122..7 W.258 SO 7,720 BsI- . ' "12 2. 1 9w iviw.,x U1.439 11,216 11.5111116 62,426 439 5S 1.517 -`ky) ...... 1,828,7N 261.019 1,511.925 M.748 3N5 W 18.05 New -.0 2.5133,512 111 2.,lU,315 97.201 ON 72 3,12, ...... :...... Se~ 570314 IN.120 1,137.052 ~,M 2,09,1 107 9402 Pix-lipl, 2,395.M 139. 2,303,742 75,446 468 FI-xiln ...... si,e :.:~ ~: oQSIl Mthounigh 47 2,110 119,095 870,240 39,603 1,419 1 W I'll is (.)I-) ...... 1,479 561 TI 83 1.426,M 43N5 269 41 1,50 R-d 1,094 IN 120.923 962,031 7.194 1,357 146 2,517 Rkh-nJ Ivrg1ra) ...... I 1.. 1,730:131 11,057 1,657.1132 59,406 ...... 112.211 W.I,,ngt (.I.wah) ...... M.0" 17 lAn nxhitt, 62,139 t08,074 1.8 167 u 2.693 191.242 7,741 7 I.W 4,17,7011 1.16114 IM12 - 26,7W ::: ~ p m: 10.06.3. 751.15 110211ti,415 .,An 201 371 At . Its ...... (6;,xine) ...... 1.055 983 10,301 9KGm2 29.9W 1.153 Be 1 IS7, A.- ...... (Geopizi) ...... 1.723mi 11,810 13.710 ex.N- ) ...... n2.S89 Bx-p- 1 W368 (6029 231 71 2.092 ~111 73.35, 02.248 25,M W 271 125 ~ : : :: car - :: 1.139,370 7,365 1.0861we 43.891 1S5 27 CO- South Quol-) ...... 502,40 10541.0 1 .7,326 12.971 US 2 5N C,,W.bi. .... 950 492 5- 911,360 or.- ~N~h C-I-) 939,265 1 Gr. . v ...... (l 9,- ...... 32,0152 Iss 17 1.073 7A 818,542 10.268 1,082 85 41~42 5 Ca") ) 1,810,402 14672 1.737.388 KOn 281 5S j.- .* I'l-,00 - 372685 31,585 M7.612 l2w 317 is.= ...... W.-P ...... 687,2611 4.D71 652,740 29,155 1.970 ...... (11,xid.) .. 1.770,140 196,771 1.019 -ki,onA, - (Flix,N) I IN is 1.178 IA91.127 TWO W2 I'M l . n I. I. 2w.392 23.175 2,793,810 157,917 1,2W 1 .116 ...... (Tenrees.) ".1,12,711 95,0111, 780.279 27VI I'm 155 son 1 1,506,783 9.018 1~442.421 53M6 232 .9 1,677 Gehinill Ankh, Z632 IMSASI 11,522.11119 IOW 71"s 2110 tests ~.Irin 11.1m i .:::::: 1- -1 10.30240 KNO O."'Ate JNXI Q--fi .'00286 148,215 923~774 M.w 1,490 107 2.820 (S. (d) I.573.19o I'm 2.1 Ioi C.- ...... 10,410 49 hire We M 1.57b C4wl no (S. (d) be") ...... sis:.q.:: 1 718,N5 Molt 1.~357.107 52~359 i'm 30 1.316 (Ses (d) Win.)-, ...... 2,143,723 '~,Wfi 2.060.076 66.308 39, 49 1.950 Detroit ...... 2.7n s7B 536,221 2.1.,299 50.379 1,959 21 7,0% Din' ...... (MIChl,n) ...... 3,118,11 21,506 3 109.3,12 II5,N9 467 Ikkann- ...... 1,290,727 I.-No. SO 2.927 119,168 1.122.902 QU3 1,417 115 ~3,782 lind-are) l4alSN0 8,931 1.7U,719 69.128 U3 65 2,117 ...... 7N'm W 7W 595,116 M 05" 7. 13 1,178 L-ft ke,lucl,l) ...... N5 ma 6,62S 998.755 New 218 a Iw. Ispnx.) :,:,, ~:::: 914 1.32335470 S.W 191 65% W5 -26 318 P..--j (-...... 555,801 3,941 533.914 1.402 filidwhi 17~15,t W 23 675 A';'2: '034 ON 1. N111,113 ,6,- - 211,401 1011.11.1 Won, O'sh.Asm .7841. 3'.. 4. 1310011 -rdihncr~stk &.koui) ...... I IG,'7"95 low 91,05 8496 109 3 113 A- lswth pai M1,301 2,113 182670 l5AW 67 1 . (I~ biloin. I I r. I I 1 2.667.425 614,U,1 1.952,936 75,11V 5,038 211 8.991 c-it. 11 3.M 899 21,M 2,953,363 105M 518 0,907 Des ..- 1-) "OU 1 29 2,393 Dee M ...... (I-) ...... 568,w 465,022 vim 1 226 Fargo , 172131 11131:. 796 916 WU3 411 49 1.505 F,p ...... ~ (North l- kots) ...... 1191im 9SN 97,915 11,174 317 13 1i .1 (... N:W 9, 174,400 17.673 12, 19 55, .Ahki,. m, 147,6179 .3.:3N 26,Ml 1995 W 2.1fu S,is'Ne I.,aU 1,157,921 WeU IN- .315 2W 424 W 2,242 One. .: *::::::::::::::::::::"-` : 41:,11 24 W4 X.RS2 625 82 M, OMM (N,b,Ma) 484,179 5,718 "3.482 M,774 192 U 159 St. Loux M - W256 in " 83"(Wo W412 1,737 11 1 791 St. Lo I ...... (l ...... 1 5M, 917 ~3.191"1 1.447,410 72,513 377 $I P...... (Iii-iki.) ...... 926,413 In P.x ...... 5. 11.15 155,4N n9'", 27~643 1,701 7'2 ,:482 (--) 1.-.032 1769 1,263,9511 some No 76 I.N3 six,w4k, ...... is. ff) I-) ...... 678,264 80,211 570N7 MJN 2.298 93 1,311 Nfkbn,gf,,W.O":: ~:: ~: (S. (b) W-) ...... W6.652 7,890 891 42.363 427 1khAww,,1 .1kiih ...... CONAID .c_,R 69 I.m 5.449,31,12 =.M 15.1his ".6 15"" 7213n .,Ui Oei 2.Ne 357 141.31 Al...... (N- -.1.) ...... 242 269 17,148 215.70,1 O~514 See 18 2as 124377 309,249 17,92. 84 13 A.,...... teo.) ...... 2,1.91 -in 622 "9,115 1,570.473 75,5n 5,970 20 3.552 M"N07 .575 2.549.116 117.973 .0 a, 3,362 ...... 24 7011 107,230 6.2. 208 S3 65 Clhe,nn. (WSX-N)in ...... 1111.141 2.038 14O.R3 sW4 45 (f) ...... 1.327,226131:528 Del. , ...... 9 316 Mail 1.011.457 67471 4,- 226 6,576 ..) ...... I.N7.351 14,005 1.729MS 100,102 515 S3 3,041 Dw,...... - (c--,) .753 599.~5 M.075 1.121 1~5 762 Den- (C-) ...... Mes%.107 6,274 9GS392 48,972 187 47 ...... (A-) . 3772. Lin. A..~ ...... (A,.-) 1.2M 43,923 312,566 19074 S2S 141 315 4.833a Now 31,280 W 26 1,240 -Orlesns ...... (Lov-1) 856 ow 72,835 MAP 31,795 Ij. 55 992 O,ker." ...... 1,257,. IN:' 2 25 591 okw- o"non.) ...... 601,253 ".2N 495,- M,.7 M 79 1'"1 Okian,ckins ty (Oklaronei) 887,51103 7,2T35 831 .1 -1s, city ~k.hi ...... x62 W w w.ht 5':O'7 l 0 24560 59 426 48.708 3811.656 Zt,- ON - W (Kenes.) ...... 720,128 7.122 -,318 43,697 249 1,198 ,ent- Nglek ...... III An 1.30AII 11.493,112 M.297 NAN 3,10 15.10 ...... "AIN3. 12AIIIIIAN Ancrospakkx~ ...... (AINkii) Obl 4,1114111 412 16.548 ~1:211 158453 7,165 W 2 1 u) (Alswus) ...... 151.0es 1,461 110,763 8.312 21 2 509 ...... (IN.) 'NO 0'17 N 11:41~e 10.01, 481 ~11 1) ...... 278.926 3.032 2S7 We 17,73, ...... (Mortars) 11,2"13 & a 503 12.Ul786 9951 1027 "1.78 Montana) - ...... 254 089 34W M1.460 8,370 a, 11 71x Hox,ik~ ...... 11-0 36,271 185 be 5.062 379 W 72 His-) ...... U5,411 3.068 308.752 13.N7 4,013. 474ath Hono."L. 53 24 217 567,957 3.WISI"1 120855 70, 2.121 (I- olki*) 4,8U14593 39,426 .551,055 217.310 1,916 'm 4,713 ~x ~Ahx*-) 50.250 WilSub 717U 8:6" 1:3S, 21 261=0 (AnhonaI.) Wi 5,53, 501.002 U892 217 I"o,hu'd 675,021 ...... 20 on 102,5411 wIm 822 143 377 ~'-) 15192 292 M14 11,103 2W 26 1..4187 .- .. (Nt'"V) ...... 219,976 18,783 191,5"o"' 8,41. 17' 71is NO 4- . .. ~ .... I :::~::: Nevada) 2W 2:2 283 509 is~Xo M Nil -ak~ Cm, ...... 63118.8111IS .,2xS 26SRS lo'Ne 276 1 a Saus -1hir.1~1 ...... ruftir) ...... 3. 3~1011,1,12 N5 57 12 4W SarFhii-o ...... 1,416 2,171,6691 wN5 Io.WS ~92 2.929 San, ...... 3,295,- 25, J~M~287 163149 &.it . Seart. 1.618 110 3.7a7 ...... (wasix,it-) 1 056 292 1351 ~ 872,087 w 1.850 35 W P: I.W5.195 12,93201 962 70.778 .2 1.00, m. . lih- oNhf1kwxx ...... no,35, WOO 2111 1.1900 M I B0 On - 1- 191,10 11" ffI3AV "Ale x,en.R1. - ...... W.882 Push. Rio. 11, ffi n 39D ~15,419 -7 $17 .5j. an 131.316 I.A12 1 to 1176 Oth...... 219,475 23374 174,656 20,437 No 16 ...... 5Z55, a 32,667 18.754 170 0- hkII1...... I.al .41.1 "13112 WILOW UAW ...... 132.952 Ga.- I.b.. N ol no B_FICA Chki 12 T-1. ii - xhi- xewi, uCuin" :: ::: ::::: MI:O7S - E.,-,- ced'is oti~.tx .: :: ...... 10,787 10,787 A.- exis-II, uni I ...... 3,662 428,0157 15,%5 ~ao; Calkill ...... 8,110,527 .0,40 7=372 WA67 3,534 245 8.50D eviol ...... 4.030.551 ..sht 118,2W 1481 1N NO 4114 3,473 T-n . bew hat - - on.~y ~ 35:' 7' 39.371 5 20"22 11962 219 1.728 717: 13 25,356 3~571,760 116,096 700 81 1~ 1:171.2%,So, 2 71 7 1IS 3670 11 6 02.093 909,313 5,477.502 212,9W 20.069 2,619 9.297 028 31 "I'm '1:278,781T '40752 CuZIIno ...... a ...... 1365.6189 W595 2,55~3,5013 'W:526 U4 - Yo k 4 000,070 NOW 3.114.799 05997 12242':' 424 33:""49 District office detail, were hot available for refund reversals pending classiffication when 1980 books are Closed. (d~ Of, ...... 2,818,71.1 4K226 2.280.0el 76.239 3170 137 4,138 ~*) Per, a is 2=825 U3,216 2,207,292 67,142 3,513 276 1I.W f) T1xr ...... 3.432,174 685726 2,531.930 113,Dui 10,855 491 10.128 : Amounts may not add due to round ng, Table 6.-Overassessments of tax as the hc Was earned income credits refunded amounting to 3 1.3 bit lion. result of examination :ud.' c~ed:~::or gasohnegrid lubricating oil tax payments. (Exclusive of claims for refund) Incc udes c so or excess yhem, uncle, the Federal Old Age and Survivors, Federal Disability, and Federal Hospital Fund' amounting to S507 million, A,hi- District office details were not available for refund reversals pending classification hall FY 1980 books were closed. (in ftwownift W di Lem than $500. ffin I In ffin Im

~WASO IN1 132 W27,741 114175.879 In .1 NO.,. De .3 N 3S8 WIN F,o -...... 1,179 16 Me 7,855 C,,hxveukv... 10,19a low 1631536 216960 Eues.. 3.97 4.1m U.230 40.896 Gxt M2 No 2,.2 2,852 E c...... 4278 IN. 1.212 EMpI,,,rnwx... 4,015t 3,398 9,791 4,300 64 Table ?.-Number of returns filed, by Internal revenue Table 7.-Continued regions, districts, states, and other areas

road and aav,a$aaIl Omaa-dadf Eaaaa air a- - avaada and d.-, - - Eonlaaadd Eonloa,aa, An,_ Eao,.aaaaa (Slana, oadnaaaalad b,..gw FAada,, pannaaan', C"'p'""'" (Saaad, __ -1 --vw da- . Inalloadadfa=aaalka-ladal Inadoaaad -1 "Won, (1) m (3) (4) 16) . (6) (7) P) (9) (10) (11) (12) (13) 114)

UaMS'aaal ...... IQA"AQ W".,M 1AWS, Iwmln Z-,w utm ftw Sadad. -1 ...... Mill a.".- sap...... 1.1673... IJ3LM =I- WASJ a- "...... V.- 3JU.SN .0,., Allo~ ...... ~Sdd (1) ...... 1.174,~ Ma43 71,4118 10,066 8.645 21.261 1,236 .IN...... ~_ _ ~. , . IS. (.) ~) ~ 1,728 209.067 Au,,W1 ...... (Manna) ...... 3,511 E~ 6.431 27.759 w "1 455.084 40,M 9.07 3,752 1 I'M - 1.197 134,1123 1.755 3= 6,155 15,28a Oaadon _.: ...... 72 IN 2,500,301 U5.392 94.991 2O.OV n.w 3.935 ...... (.-Cn-ad) 6,651 W,IS7 26sSS Ba.dA...... _ 14.511 9.1. 16.230 97.493 2,699 S51 2%.WO V.7N 27,507 -.637 3.643 ...... (S. (C) -) 3.814 116.590 9X7 13,627 8.987 IO,S&I 120AM son. .. ~...... (Sad(.).da) ...... 2,648.ND0' X tw.m 157,843 36,702 19,M 42.664 2.- B'dal...... (Saa (C) adoa) 1.30 425SN %S7. -.wan ...... (-) . 12.- 1S,21S 112 206.117 m1e, ~.Wl zM 162 2. Bon.,lon ...... N.,_1 WS 10W .4 2,024 2.041 9.579 ...... =6 ...... 2,435,739= L502.658 167,979 .91210 21,075 ~,582 2~se d . .... (Conn-and) 5,01 432,1. 2 10,532 lIannanda, ... I ...... sadmoo-) ...... 3.356,695 1.784.167 211,- 111.9W 35,952 131,8W 3,W -n,Indl ...... (Sad 6.7156 11.2w IS.IA5 IGO.M odI-ah ...... (N-pa,1)...... (C) WSU 10,395 N.043 71550 7.355 137.299 593.665 M7910 ..2 S.~ ~.Wd 1.,- 57' ...... 112,593 1,- 2,27. 4,142 ...... afiand) 600,211 1 40S.17 31M 1.7M 3.- 1~1_ 441 ...... 676 16.043 P'.9- . . . ~~*..*~ .: . :...... , : 113915 2282 1.443 115N 12.70 ,.=,M 11.1.95, 1,172.201 2?4,4n 1...2 M17" 17,U3 ...... 27,570 IMA. IN.", WN, 61,176 103AD, IINION .AI ...... (JAIayland. D.C) 1:3S,:,7:211 1 11.117 198,271 11.610 27.M 56.3N 3,2W .oannorn -rAaal & D C) ...... Eon 560153 aaanal, ...... -ank -2 ~Jal RYS6 11,- 21 1,52S J-Y) 51 3.M.615 3113,~ W.W4 41.7M 143,167 4,SN Nan, -Y).... 7,_ M.73D 6.5`8 24,406 12AM 21.944 3U~529 " 8.,w 2.989,813 M.728 M17V 36.927 W,113 4,058 oaladmana c- a) w-) ...... S5DI 749.673 panana,gh ...... (San (a) balo,a) 29,360 15,127 2S 816 100,211 z AS 1.809N6 10.077 39,U6 V~623 29.3D5 1,871 2.WA 429.497 16N7 10,923 20.592 57.424 ...... (Va'atia) 3.165203 2.119,219 M,376 30,71a 25."5 51 - 2,7139 Roanono Nngana) , ...... S.332 W.036 ...an, ...... (Nadana.) 249,Nl -...... (lOaII-n.) ...... Ii.03,, 18,= U.59a 501.106 ,.0 10,486 2.527 SIM 441 ...... 708 72.265 102,985 I'll~1276 ,,.W3 1 2283 24.816 ..9...... M"ju 3=,- I.205.m N,w '"'37, mm, Saaaaaaaad .wan ...... _ ...... ".727 001501 49,318 97.1. AtIan, ... G-In.) _ ...... _ 3,109453 2,071.7W 136,677 25,131 MS12 Allant, _ ...... (Gda,gia) .. 275 U I.w M.255 "wI ..704 621,4W 26,621 15.313 IOO.nI SIM19dan .:::: :i: ...... * AIIWM) ...... 00 981 1,359,IM SO,= IS,= law 30.00 1.121 W-gnan, ...... (Al.oanal ...... 2.522 40a,230 6 M 1:01 1~-.305 83,373 10,267 1Z359 27.9~14 1,324 1-a. _ _ (Soon, r..a.) ...... "247.5786.7" ~.':7'37" KISS 3,M.No1. 'M 2.M,7n 168.558 25.~37 26,4115 58641 2.1. 2.157 ~,037 7,4. 40.461 G,..n...... ~,-) 4,959 680,2W 15 406 12,IM 11~ 295 255 58,012 6,567 10,96, IS.ND S.828 ~ .. ~ _.. _ (madol ...... 1386 279576 4 644 7, 104W489 -l, (Flanda) ...... 6,157k370281' 3.954,744W .5,3N 92,292 51.103 167.Ul S...... (Flodd.) ...... 1 INS 4068,P:3M, ...... 1,3131SIO 22.1597 .,434 M,S17B 31,67. it2.7".433 1.851.649 IU.381 20.512 27,351 37,410 1.970 ...... (,a-) ...... 2',ISO 510.350 11.159 34' s.0. 338AS, 12M.A16 w1l" INA13 UZIN, Caad,,Iftgodd _ .__ ...... ,170 3~.O'- 19.145 173 G-nnal. S&M 'U'773 .076 1,934,813 162.70 X818 ~,457 .2,285 2.663 ...... (s. (a) w-) 3,Ml 157,358 2623. 27' 2124.787 (Saa (d) '3:8'39,137 2.626.M ~.,M 49,417 28.674 W.21 3 483 =.no ...... (Sda(d)-)-.. 4,982 MSH IS.5 IsS923 IIIa...... (10-W) .. .:"1" 12:432 113,604 5.3 56,931 3,757.322 297,136 9,SD9 48.281 92.2111 3,526 ooil ...... (.i.hapn) EW 873.50 11615 .3.608 23,207 ~92 1 92 Ind-d! ...... (Ind'..) I:,1~1,2:11 :22 a. 197.472 QJ76 .149 551~ 3,707 ind,naladi ...... (Indoo,a) 4,S, 1 =.9", 15 408 I-'...... (--k,) Wl7 297.138 12AN 771:62 11 1OS.N2 19,163 20.253 W.W 1.5. -11, _ ~ . (Konaa,ky) 2.562 3715. 7,US 9.090 ama. 0 ~arloa_q ...... (.. V,,,,..) S64M W7.300 S2,91, 9.722 am 15,921 715 ft,A-2 1.021 187,81, 3.773 5,70S a- lawlaa ...... IZ-15. L307.5114 .1,.21 1.1m 37830 31,1n1 alladanall A iaa, 1 02 q,.M 'ln 593 21.07 ~Soa,ta Dak-) ...... 153~w 276,S40 28,127 ~,50D 5.746 7,557 AN,dX"_ Na 3.W VMS .2 M~ 81 iSouth Wkdna) 41TW J, 3U "'2! 3.462 5917 17.934 C..g. 498013 3M,691 W7.799 114,637 55.74a 107.424 7.443 chc go ... (S. (b) del-) 8,782 507 7,861 Q.109" 15,287 2D.717 11:M Na 148.402 W.U9 21,745 MAQ ~Im [)aa -nad (,-.) 6.551 219.712 1,N=,h) d,~) ..,762 M,2N 27,554 4,7W 5,121 7.S82 I.w F.,p 1)3,574 12,176 9.391 21.572 7,a7l (Nonn ~,da) "9,6 WNI 2'.6 2.752 6,525 17,253 3,1 .0 1.171~1 2DO 5N 52 413 26.071 W119 3.VO .,-.k...... (W--n) 8,376 .8.157 2"5" 23.559 24,597 7SO2O OS7:MON 653 932 71:230 14,326 12J34 22.U3 2,M o- _._ .. I. ~ (14,ha-) 4443, V2MI:035W7 6:1 652 13492 S, ...... 3.052.635 1.967.M 206,218 `6.M 25.7% 0,151 3,.5 S. -1...... (Moddon) N, 38,261 St: `aw ...... 19618 IS 3N 17:177' 24,176 76,000 2,07.425 L716,566 151.981 31.115 26,878 SO 073 3,411 sLp"I __ (mnnaal ...... A713 4NA" 25,526 22,779 lu.m 25,495 103,275 S.Il ...... (S. (b) W-) 1, .32, 1,241,000 135.669 V,574 18,798 24.374 4,1 SO Son,fiald ...... (Sda(b)a-)..- 1.233 saawaaart Ragio, ...... 348.679 ltm 5~925 14,70 44,021 soodiaaal a"- 4M . 12=633 "ou".77 11131.10 "',ou MAN 17,159 ...... 29.316 3,727,24S SS.V1 a,- "."1 151,067 : ~ ...... , 761 M 502.9N 38,457 5,959 8.2W 12,355 a- . 11 I__ ~ . (~_ .-..) _ 857 I.M.141 A,don ...... (S. wid.) ...... Aaaan ...... ~. Sda(j)oald.) ...... 153OW 3,211 ZOOG 5.1126 21.1o, M 253806 3,297,362 241,21V 0,943 WN1 $0.470 3,781 6.684 01,615 28,820 20.668 25.918 X129 MI.652 INIM 16,7,5 2,879 41614 7.477 29, r."- . _ ...... ~.. ffl_,j ...... 8M 72.W5 4SOO93 Daw LI, ___ 1.300 2.225 41186 17.052 31 790.554 2.30.874 210,351 4656~ 55.168 0.745 32W ...... _.(sdd(f).l..) .. _ ...... 4418 780.106 26,707 17,4W ~.l 17 17o.wl ...... W4.003 1.241,727 110,660 24,972 29'.6 42.NO 1,809 lIan...... (~I.nndd) ...... 3 4~ 381.01 (-dadl ...... 124ONS L, A.l, ~ ...... (A,.-) ...... 12.574 7,139 12,729 93.1. 2~ 1 800558~ 71,740 9,020 12.250 21.W 982 Z011 258.023 4.211 5,745 11,511 3S,UO 0,1ad ...... (Ldad,ana) ...... 281:970 510,070 lw~ 11.2" 16.1V 0,926 1,312 NZOH.nl ... . I (L-ad.) ...... tm 4W.M Oklananna Uy ...... (Oklatana) SOO~ 1,141.239 Okla— Cdy ...... (0allhOM) ...... 8.770 11 M 16'.8 70.131 mw 17,912 21.W 34,702 2,M 3,767 357,022 7.n3 10,643 16.80 77,261 Ida ...... (K, 559,S72 16.40,970 895 113,530 20,- IS.W9 21.S27 2.P8 W.a. ... . , I (K.-,) 4.2dO ni 1889 6775 1 01 Lfts- Ns- M~ .9.07 2G.M ...... on ...... a = 16,M 50,739 ...... n1ads 1.11611.3M 71.133 1.1.30 61,18, 1,111.09 I.M.." 275.332 75~649 7.= 1,232 5.w 5.056 145 (A..) I.. I...... 252 48,797 ,,w 2.312 Ddd~ ...... 568.2N 364~255 W1805 4,4% 8.261 11,011 4~ odand) ...... IS6 119,05. INS 23,973 Hakad, ...... wl- 3._ 3,4M 7,117 2~.- 5VW9 32S.07 3SINO 5,201 1."3 ;SI:123On 7. (..nanna) 20SS 122AI. 2.477 4~654 8,7m W. 022 413,178 39.062 6,381 7~826 6 7w IIdnoa,, 1,711 108~760 2S.669 Loa AnVado (S ...... I'M 1,970 2.405 22~212 2~~1:11S 1:11I ~995 610,559 12S.6SO 131,.S IN'— 10,220 " A~,~, (S-W-)- 6.56S 1.00,6`14 n,155 S3.200 191,89 37,069 310.30 An-) 1.N U9 107.152 ~,900 16.599 29,261 1.5V P- ...... 2.02A 276,777 8621 2,087.wlP` 210,215 1,974 Ponla'd 61355 7,742 "'IN 11S.611 20,245 25.301 U,132 3370 N9.315 5 14922 T778 16,583 na,220 ...... B482 362~529 25,971 6". 6,.5 111SO5 332 Rand ...... IN—.) ...... 5`6 N.N8 2,91 B 2,309 Laa.Uy V6,"l nju 11609 12,069 17,261 540 Sall _ak. Qly (Unah) ~ ...... 1.736 5.11's 28.689 Saft Sa -.ood 10,751 SO25 2.280 6,379 39.218 6,663.911 4,218.958 4.,NQ n,712 91.126 ~,973 8,315 (Saa (a) oalda') 6- 1,183,387 23.298 X193 20.953 Sawd. (W Von) ~...... 2,75ZM 1,741,060 166.748 27,~ WIN 46.1 1,958 Saw...... daNa,n) ...... 2579 40N3 402,383 wa-aa"~l I 519,315 20,675 11.176 9,977 25N3 137,Nl Cdaaad, aa~M - "1 10,055 - ...... 1. 1951,65 m .1 19.U3 poan. Sn'"'211,172 "79,229N 15.423-M 87 71 235 38 Plant, R= ...... _ ...... 48 82.525 5,1 ()laar ...... 01., ... ~ ...... 25 W 112,100 318,U8 48,502 U2 810 9,no M, .1 13,240 253 16 918 18,792 r.w...-dal-alann, TdWaaa,aaalaIadA,adaa,,dd,a

1,075,541 f. Waan ...... ~ - 15,awaq 1012381953 200,372 M.951 264,111 18.5,15 W ~-...... 13019 2,874.021 524S3 07,03 40,742 77,952 712.746 M 111,nod ...... 1 1.11 7~W.~ 1.9a 69, 473468 142,211 74.542 131,M 11,593 (a) fla.no...... 13015 1.214.186 7861 59 644 24,212 35,480 d~ Nan, Y k ...... 11,199,618 71150,326 710,965 181,489 91.907 ~118 11.629 (C) ~ Yd,k 16.771 2U.633 (.) olao :...... 6,741,213 1~561.162 387.= 66,235 51,131 1w,Sw 2,232,449 19732 .15, 35,702 .0. W.390 6,146 W) 01,no ...... 8,523 1,06,254 11,944 SO 153 25.711 371W 280,527 (f, P=0T I...... 7,021,914 1,7W.M IWSOS 13SX8 59.550 98,418 5.9n (a) ~.Y-n...... 8105 1,179,170 a6 OS7 2SOSO 46,40a 157,05 9 N41M 5,651,236 451,633 95.507 113,2W .6,2,5 7.063 (1) ...... 11,102 1"",721 55.527 3S.068 37,759 S4,246 651,074 waan. Nadannal Dolaad, __.; ~23~ ftlaaaa Fonds 1NO IWOA, INMR, INOSS-PR. IUX 1W 1W2. (8) Foll 709 Fon. I NOES (9) lacl,,ddsFo,nd9aO,!IIOPR,94I.%IlM&SS CT-1,-CT-2. ~~O) FF-;: S190. '011.9 T.NIZ.5221-1720 11S~ 11IN. ~ I 1) add 500 5~, S500K ~1, :~- 10~:'. 7112D. 1172~. S-- (Soand 114. 11201, 112..),112023.11.1..,1120~1. I QO1 Ind, I.. (12) ~ncl.- F.- 1, 8, 11. 4701,17%,4707,471. Alandl 1,1d. T. Ratonad. 1W TWO— E.lw Ta~ RW- 7) W. N and ~& ~143~ :.C:,,dn F-1720 720.. 730, 2M. 118 11 C, and 4M ft3F01na d4OX,II2OX,2M.4N8.7ON Tant 11201AK7005 NOAS.4S78,iNIA,2M.N0BL,,W6%9 66 Table B.-Retums filed, examination coverage and results (1980) 67

itsba- Aslaabbea 71, obe P- A-p lr~ nd Ch.V., (In .1 P ..by W Asia, ,s,bon, luminas . T. Ss""bil Tbi~' Ponbsn' S- 1. 1Wm_ To. CY 1979 Assets - Con. C~bbmlgo A.- A.H-'.' C-.. T-1 .9- ben, ImAmeaM. bou 90,121.115 m... 1.346.321) 1.51.11 1.113sm - $1.335 5- 11131 11111`77 "I"I's - ints 13 38 MM 26.273 372,221 39.6% 4M,lw 1.14 1.3 too 5 258 5,438 - 131 15 30 "S - Inbe, 51 a 000 1

1, P,, -.5issas 2172 1 ~6 15 M 192,U9 48 521 255,975 2.03 46 58 1 - U86 3aQ 1415 N.1.1;~1:000- $15,000 5.0as _.. MON 270,101D 57,4si 5W.199 $7.812 7251~ 2. 12D - 21 M2 20117 433 24D '3 '2'1 000 uncer 3U.000

N. $so- -1 1.251.151 M,457 47,161 2.719 109,337 874 .1, ..146 1 447 12 40 NB Most) and - BI unda $1o.ox 3,M.2w 36.330 77,D15 4,049 117,~ 318 is 69 1 1m 3,159 No W is 22 B Undo, $ 1o.0)0 -

8 $1 am b" MODO 5,465,E78 36 408 V..7 8.876 97,731 in N 12 2 137 2,570 M 250 12 20 8 51D'00D _. 53O.D00

5 130,C)oa 1.871.2 61,475 24 888 3..G Wells 4 n 452 .83 7.358 1161 - 12 a a

-,Jay 1.4"DJOll s'sTs .'n' 3,429 11

P,,bbon,bo, I.M.311 221.0s, Me", 1.7. 39 P-lp C.,-., T-1 2,NI,612 -'6.3 1341.550 ".972 21 c-bbuu:b. Tetol

-1. .. nb~. 125,(22 5,790 5.7130 .,61 16.5,C) n -1. - beconod .

undin 51 MOM) - i.m.189 36.520 36520 3 Q 61 61 1.679 27 u-, $100,000

$100,00) r..' $1 1 746,767 51,963 51.9m 6 N 195 195 3,758 23 sloo='- $1 M11

31 M'I unso, $1 o W'I 11"(w 27.636 27.06 lau 37D 378 13,685 17 $1 M'I under $1 a W $,a Mll ... 3 1 Go 26.302 7.756 7,756 2949 o W 0,674 to $1 o KI abble, $100 KI

$1Do W ano - 5,129 39M 3.938 76,78 1 4,737 4737 1,202.893 $1 DO .. .. -

anion oa~o c~~ Mi,311,11, 10,457 IDA17 ~o? 31 31 2.M 8- corp.

.--I ft. C- 6.156 "oos .43, 45 45 .7,631 cm.

1%,:M2 MOM!` "wis 211.41. 18.17 "osis 4 1.00 3S."s 2.71118 12 17 Esses. siou,

G.. E.I. U- $30'sDOO 119.169 9,15, 1.225 10,376 8.70 75 3 79 8,247 2,827 15 16 Gloss Esti - M,DDO

Gloo, ft.. 3303,000.. 37.193 17,657 381 'e'tais law 970 1 971 K935 2,578 to 20 G- E-1. 1200~0)0 .. -, 7.113 .1. 111=17 41.06 so 3 o' "'.' 4,172 N n Gat

I— Ern- and Glft, l1ral 95,771,515 505,587 1.3"11MO 195,073 2,.9,200 2.12 8,587 609 39 %Ms 16.90", 452 199 17 26 I-M. Estate - GA. toba

EW. "ass"is U.U2 'O'M 79,M W 2 IN 1."5 14D 21 1. E-. 21,4211,11142 so,nso o= 49AN .19 70 72 1,712 10, 20 28

4111 1 Is W 42 .3 1 26 hbnseb~`

Con. C~ 03,046 MOM$ 123 123 221) so-bs C~ cbbnlb~

Totals may no, add, due to rounding, I S- Cmun no-crelp Me by d- , not ... lato, No liable of oemos obne, unmulbon, Nombusiness Adjusted gross income, Business .turns, BOlanCe sheet assets 68 Table 9.-RLturns filed, examination coverage and results (1979) 69

"I'lid"Jane I. ."If FII,Ira. Airrini I. I. ft ChInfili. All- I. Sil"r"i'l, C", IV. ANrdI Clixtili R-A.- `k~ __ drilint T-1 `irnirxir~Apae, Audilani CInam, Ap- T.- h.mNlit tilitill, VAAMI 2811,141 1AK311 '".wrr 1~194114 111% 51~j S542.2 135.1 M101.5 "A's $176 12 24 aeRn,liall, hills, 48 - u,xe, SIO.COD 38,0116.496 21"m 376,7s2 40,237 .5,572 1.15 1.1 9316 I'o 241.9 512~ 249 100 12 27 FmNo 3~50.0035 $15,00D 12 627.936 17,119 210.8a 56,637 2M.W5 2,25 '91,2 1441li 1:~ 000 S50'0D0 .'W'wa 5".54") 561.713 87,7sl ?C4.02. 2.91 11'5' 14 294 127 11 22 .8 slo.000 $15 NO 359 116 On 2PO lo 23 NB 515.000 550000 .5 560.000 Was ab- 40,247 I'so, ah.989 lass 373 2 V.2 IN., 1,198 799 503 13 1. Nis W.000 ma v,, B I unds, $1 o'000 4.N3.915 11.501 95,323 3.790 IU.617 3,28 121.2 68 5 .8 Iss, 3617 718 208 11 22 a I - 5 1o'000 s'lw.wo ..- 50,117 7,558 92.M 1~81 955 34 3 1.7 13"6 2,710 685 225 11 19 B100.000-1130,000 DMON..s., IM3.728 58.536 21'M0 2.,100 83.m s." 4137 26,2 1.2 -1.2 els. 1,227 516 11 27 8MOD11- ",.A,. Max Win -6 1". IDWS a, N kp 11195.186 xt,_ 1. =A74 .1 n 1,2110,371 "zititit 47 .zm? 7.44 4,137.3 4,137.3 US n 4D Canparniacn. ImMe 8,273 7 8280 (170 80A . 1 9,721 31 N Asse. - "'aah. u- PMDM - M9,614 40.156 22 40,178 4.19 6C) 9 61 0 1.sle 1,3M 32 36 uno. 51 OD.000 - 3100.00C.- s, .11 674.357 53.507 1~ w.sm 7N M9 - 9 3.M 177 25 $100.00) - $1 M'l 51 .1 - $1. .1 iss"n asums 1 28.629 2141 393C 393.0 13,729 19 50 $1 Ki - 31D W 24,421 8,373 8,3n X21, 190.7 5901 70,- $,a M'l - sl 00 Md s1wWrind- 41,T11 3.S5(3 3.957 83 1 2,8014 2,504 4 709,893 339 3loom,lano- NxIts exIi- conioalson ...... to "jilan L" 28A 28.0 2.00 39 GO SnIll a"- Corti, c- "m Im 41.1 41.1 211.843 37 D.Mft "w cars. I"s zin MSO w.. 5.7 W., "Im 2.611 11 1. E-1 krall GiassEsIall-MODO 122,335 10.867 1.874 12.7.1 1012 N 6 4,5 1031 9 07D 2.424 13 18 Gn- E.- - G_ E.I. mo.- 35,115 16,1 n 318 16,491 16.17 -.8 1.1 .59 27.50, 3 5438 22 G- F.Cr. S30D.000 m INN$ am "al, KIM C(t, 133.1 1.2 I.J 12,ilSO "'V 25 I- a Gil, nOD".175 5M.75s hil 2,M,480 22. s,3U.O 5491 35, 6.916.2 12,113 4. 176 19 24 1- E.- - Gxt, Wall E.- sm'ss' rf'745 10,359 42.1" U, 67.6 1.6 WI 097 Is, 1. ud. n.592."3 N'm 10i Aa Ma ... I'm m 1-2 119.2 2.5;~- ~c~~ To als may not add, due to rounding. 'Schnce center no-Change rate by Class is not available. No Nono,sine,tsa neturns. changes resulted in 33 Cercent of sel-vice center examinations, :Adjusted gross income. Business returns, Balance shiest assets. 70 Table 10. -Number of returns examined by class of tax and by Internal Revenue Table I l.-Additional tax and penalties recommended after examination by class of tax 71 regions, districts and other areas and by Internal Revenue regions, districts and other areas (in thousands of dollars)

a- 9- 1. .1 lla,aaa,a naglana. C_ aseas 1.1anaal Pat— C_ EA-0 dt= aad ~ eaIlan, Tatal aelaidaIll 0=1P C_ ft.- d - .- .a- Eaala Ge, aaalaa Ono-

T-1 ...... I ...... 21=1.OSS I..3.45a =,.I 9,015 133.S93 12.01 ft.414 4.327 n,doe 49.91111 23.1107 19,318 ~_l _ ...... 9.462,942 "70,557 a- &Or.- 75,005 ~$.M 911116 .."a 71.533 ss.sai ...... 274.40 2,W I.GV NIM Z363 a,.$ I'll. 11,517 "m A7,7 Zen ...... 2,976 027 nun 2~1. 2.20,144 =62. 15sla, el", 6.432 1.18" 6.838 ,"fla...... 152.41a XS,2H 2.717 1~4 17.75, 1.- 3,Q5 OT5 "N' 5.9115 2.619 3.196 m-san...... ~. ~.. ... I...... * 897.497 n4,W7 12,M Sn.n5 Mau 2Z491 B.631, 6.322 IL291, 1.042 i ...... 1.3 2.06 Ma 10,17, 1,03 3.1. ,- 1a.2 ?.,I, Z.. X, S,AdIaaal. _ ...... VBJ.2 Wl 1,134 371.M U03 ...... 7"s 1.1.8 14M. uO 5171o ilWAS3 54AN 2,.2 "'as 'soos I'm 3,505 037 91081, use 3,073 We Cal., ...... 2,236 ne". 1,.112 40t,332 5.882 "Is"? 6.57a 40.740 4,911 1,- ...... 269, M,282 3,573 Ina 21.093 IA" 4,M 1.498 13,342 C977 4323 3,5109 . NO n .719 946.741 7,759 M031 n.W 4,172 17,M 19,yo banhantat ...... 254.145 .3146, 17V IN 16,231 I'm ZUG Gas I'm uln 2.5. - M=; ;:OS!:I . N ; .2. 215 .61551 131.1 04.03 15.110 W_ .... KA305 481,305 5,220 2,M9 0,157 1,5219 4,en 915 Il.7W 6.121 3.533 3,959 W.- I'Sn'"o 4s2.8N 4.387 91"s 10.M I'm ...... S96.110 I'm, 4W518 11.4H 'Glue 414" 13,08, a-- 6o~aZ,a: ...... * 13.50 5 . 603 274 a a Z1.3 243,017 2o.s. . M2,0115 sees 910 ~Aaaaal C47, A ...... 12. 90 9 as, 173 59 870 103 80 SSI Gas ..Iy ~ . 28.441 10.484 175 12A. 177 3.933 243 W9 A,gwW ,~ ...... 6,720 4 503 . w 119~ w 75a 5M A,- ...... 21.40 4.168 Is 13,122 566 B,a- ...... 14 2.116 72 las 1,7" 48.151 Us'n 321 43"1 M 297 263 me 173 2,286 IASO 2.007 B..n ...... 35 566 38.567 903 2SO 527 7.D99 1"52, 1279 2,141 4.5so B-lyn ...... 81,110 71.544 M9 07 3.249 647 1.n6 317 1.738 w 993 671 ".0...... ~. ... -~~_ IGS.22 59,MS 71 57,786 931 =10 ... I...... 2.310 13.005 13.5 639 1,193 147 27,2M 20.852 31: - 2.OW 1. 10 225 I'M el: SUI-Itlollal.n - ...... 141.437 16,130 230 110,305 7 4,NO 1,652 07 We ...... 1.092 3,238 6 32 397 56 12 128 12 ...... 15.943 2,92A 57 12,4W 453 . .-d ...... 39 70 31.100 24.237 536 212 2.527 Sol On in 1,092 Slit ...... 176~507 20.723 402 138.752 182 12.596 2.067 40 1,316 ...... 73~262 S8.2. Sal 25726 5,01354 Wa I W 419 2,- 1,W7a 1,717 1,227 1.71.7:21.2 1111 172 1 9 12,23~ 43,17 P__ - 2.311 1,245 8.5'26 1., 1 20 3,933 49 29 as 1., .1,I S, so s:sN SINN6A .11 25 Go Pm- ,:Us 3.680 10, 69 891 13 67 28A ...... is's5s 6.M2 7S 6,476 492 1.6. 27 A- Sa- DanIar ...... 14.312 14,312 A -Sa-..~n...... 2.608 2.W 17 ,--. S- Cnl.r ...... 25.425 25,125 B-..nS-.C.I., ... _ 5,685 Sees hlld,hflaas~ " ; at"e"l. PO,:...... in 2,727 610 IS Im...... =Bell, 51.105 40,557 6`2 22. 224 1.701 1,699 1559 1,279 126,U5 43.225 AM 59435 2JU 13,936 3,768 Iu7 835 Gas 124,:1 21 W 722 56, 162 an 489 1,139 210 1.942 813 493 l." N- __ ...... 195.374 47,031 245 118.767 297 23835 PNIA,ieipwa 36.682 629 sw 4:jN41 11 111 141, . ~:. 1:. .7 917 P A-...... 2.85" 583 11.9 113 9 an 207.241 47.764 662 114,035 .,02 39 634 S85 1.572 1.713 124 26.112"' 720 321 155 1U an 1. P'..'l, ...... 182.032 s3.919 %- 126.511 1,147 7j. "7 1 No ...... 39,161 33.044 509 1 CS 26797,0 22 u 1 128 1.24' 87977 ft-nd . . I M.920 4D,U5 45D 762 Onatntil. 77.423 10,556 6501 1.223 1.510 312 5.070 3.949 52 46 36 98 46 64 wo-g- ...... 45,t7l 9253 54 27,1 M 5.980 1.063 322 13 P-at" 6aniar ...... 10,552 10,M2 - - S.-.. C.Is., 2,210 2,210 - 1,323 Sa,,Vaaewt s,IGIaa. AGO- A IAllA ...... 51,168 -1.298 .8 131 3.22I 276 296 W2 2.093 1,125 1,5s? 772 All A Its ...... Is 114,982 AA"D Iu SOMI .9 9,9AD "W7 5.2s7 63a 2NO 30M 25.879 26, Us 138 2n I%, 1~191 49 BlIniltion-Co...... 98.120 24,374 BM 0112 4,895 1,627 2.682 292 19813 lGaal 114 58 ()` 131 189 Go SO, No .A ...... 31,7. 12.274 72 11579 G,.-...... 366 2.N3 510 73, No al..9 32.098 s2a too '4~N3 28992 atte 279 2M2 l.NG G, ...... l3a,476 X610 170 SAGG2 M7 am 2,1~ 1.687 979 j.-...... 21,886 18.473 ~ 2 135 I'm .1 ...... 37,135 18.315 1033 10.284 ...... 96,117 76.951 anno 4.7'1 1,9232 '19 7781 1,S4 433 5,811 2,096 1,121 Sol ...... _ ...... U01909 3,923 3.287 243 SO SM 4467 112.755 2u, 39.363 4.516 1 oth I'M 3.670 32,423 26.745 149 w 29 317 136 1.249 an _ ...... 80,742 27,243 425 42.406 'to San aCa IMS 912 It, ...... 521 23.524 Atlanta SanIce ~n...... 3,816 3,816 me- Sa- can,...... 26,237 2a,231 ma"I"". a.-. ~Ia` ...... 6,399 6.399 Date., .o : Galante R"..: 0...... A43 21 2:11 7,1 1 ,1 1,482 1163 C-- N sea 21,667 131 565 1461 ;41~1~454 11 1 5SE1 714M we 9,7el 734 2.01 00 c...... 40.215 28.425 44755 217 588 i's 261 2.28G I.M SIS 128 C.. - Sul 33:302 148 82,3G, ~Ifi 15,"0 016 5.6`5 ...... 64061 515. 17 91, E)at I ...... M1,416 WS79 515 2394021 2.525 1.52- ...... M321 '... 38,583 1,710 17599 26"M 20.138 280 37'US 1:733717 T I~474 7 ...... S5,093 28.539 284 2B.SW 70 2Z903 11625 1,717 16 ...... 17~563 14,201 M Go .in IG2 3M 110Z 4111 589 anil ...... _ ...... 128,198 MAN 11, 64,051 1,286 ft- I, ...... 21,270 010 391 W J."S7:117 55 760 5D 155 (1, W7 Pa.-, . I . 28.06s 15,51, 71 6,785 783 4,431 141 13 277 cl-I 11 11':7"79 1' C=lInAn Sam" ~M` 2..75 2.475 .-I R. all I., A -I ...... 5,635 A493 en11 1 113 262 l..27211 .,5l; A 9,652 3.643 10 3.655 i.no an c., Go ...... 11n n IGNM Ch-g. is 71. 60,937 6161 , 06, 3 63; 5..4W 76.6D9 W .82,764, 9" Ia2W essa 907 5.5 3,11~ 2. 707 w as ON U9 Sol ...251 1.177" 059 De,,. 1... 73.733 20,185 88 l.w. IN am Bit am 5:729 '7677 13 IN 31 SO 14 F,,W 111W M 4,657 Us 11'4:11 2, 71On N3 3.2-2U 22112158 11 120 2.060 659 mll.-sal SN 1,765 2W 8 a 137,567 22,4824 215 107474 16 4,422 1'.12 1.Iw 373 se M3 NG2 2. 1.0 M7 ;N 05, 1,127 Onah. 48,113 10.W 62 25711 747 9585 1,07, 156 so 26,M7 369 Go 31 17 246 Got 1,721 1.080 S. L.. 111.959 M.U8 111 81,01 2,10 S Paw. 87V 11.0 333 9,122 835 S M"4M475 27,455 571 2'1.17 3.-" Me SN192 290 14M492 877 1,.3 11585 a'. Pata ...... 23S..lS 27,581 119 180,934 2572 6966 Use na 11508 ~=*ld 15,271 407 219 2.057 1w 570 176 Mai 633 - S,anntin- ...... W.M2 27'Oss, 467 40.931 292 16,897 15.233 Qh, 859 ;,85GM ,.- Oil, so,"C. aan...... 3,235 3.92B 261 221 aa~lh,aaal la"aw: 3235 AltaGu IG ...... 0 7N ,3:121 14 1 5D` 48 57 11 457 15, - A i...... Main own 9 6,752 655 3,035 657 A t,n ...... in I N 3,248 517 1.70 1,627 1.484 A In ...... 122 6D sa:w 5N 306 IN 507 45aM 49,562 2,443 345 462 5.658 35~645 3,531 U62 4.350 4,153- cma,nn,a, ...... 5,4. 3,961 85 44 w 32 91 73 Ch...... 12.621 10,43t) 2 W3 1 872 in DA,...... :.. - ~ I :::: 2516 3.1.6"62471 339 Sio 254 ISW 2,6~68 1 1.110 433 92 11 1,141:11 7421:12 11 14 2,138 V.745 13222 1,131 970 Asti E)e,...... M:2"11 Pl:Z" "11'. 137 jU 170 75 797 Den- 19322 91W 421" $45 802 ;x9 Ufti, R- ...... 111476 217247 67 731 211 73 2. 12 ..945 7.79 4.740-2 Ha I.7W Naa, (),1- ...... - - 7 M 1.5611 1. as 36 "W:874"' 64 2.4W 24'1M so = 111W N- 604 WT I " M,049 2,070 a3:1"6'.66 67 959 Sal o..- oly ...... 2221:1 1 1:1, 1 ~ 2110 ~:378 J.,41 -. 11, 1:SlG2 1.M wlthona C h, ...... 61657 20,753 102 27,351 w.h,...... I.U7 a755 u 1.09 101 1 . 312 338 331 237 373 .. IA ...... 59 434 21aN 112 29,407 287 550 ON 453 am A.In Se- ~.Isa ...... 16,828 16,828 .."I Selic. Cant., ...... 2,316 2.316 . aag An, : ...... 8,317 7,221 89 3252 39 20 20 8 352 182 Anc,W.pG_ 23,N5 9.247 112 13,188 45 257 23 71 -999 8.634 181 76 W 85 1 U M 697 292 37.275 6.611 25 27,439 76 2.358 257 Me 171 Haana ...... San "S NO 10 4W_ 72 N W 40a1 31127 ...... am ..822 4 1.915 89 3.W Ho...... 376 67 33 53 N 185 IN no OJ94 n 7D 19.348 9.646 187 76% 5 1,727 u 59 34 La, AN ...... M2,146 209,516 1,70 73 Go .9 1.860 21M 3,413523 1.50A 1.377 2.132 LM All; 1,, Wslu 197,035 2.311 262:01 184 35,897 2,51, 5.6a, pnun~ ...... 26,95, 23461 310 1453 ':'1 We 104 245 GO in se:1.1,1. 135:71 14 1.167 41 14367 1,563 IM 203 IN Still 675 29 186 ,77S 41~537 2W l.ID1 35 153 438 So 31 Sao 914394 207 333 R_ 111'73 1041~73 M2' sea AS95 as 45 512 Ra,, ...... 310.853n 23,8n UO 0: 11 276.41 W13 sat Lao cat . 12, 'G~,627 7 508 w 26 No 39, Salt Uke Oty ...... 18,U2 12SIS 30 3.2n u Sen Ft. 123,2B5no .. 1'.161" 505 5,18, N4 1.615 me 2,819 I'M St, F,.I-.a . .... I...... 1 55 188 sons N7 422.353 106.647 l'oes 175,"'"06a 1,013 122,761 4,388 I'S 11 U2 1 -seaft Mon 27,754 587 In 2,211 me "3 112 1,706 776 1.162"I I I1107 Sa.tI, ...... 75.855 28.66a 236 814 A 7.670 2,495 80a 5~~c. 16 W7 16.907 - O'de, s- Can,...... 2.774 2,17. . 0:684No C"e"F,-S-ic.C-.r 30.650 30.650 Reano Sann- Cant I...... 7,396 7.3%

. -Leas than S500. Tab a 14.-Civil penalties assessed and abated 73 72 Table I'2.-Returns examined by Examination Division (Dolilars in thousands)

Ill , 'no

...... 2,~179 N7 -_ ofnarr.....- 790 F::u.Z *.;,he.d,,Vd,M,Is or nxn- oviiiion 5,10.507 ~ .1 E.-ter, dvoor 2,27303 2.179 297 De, mn,y 1.OM.171 222,165 129,660 4a.s35 900,521 173.3211 cxsxo._ or E.s.- Arramit: 2,M3912790 1.997 w E-oxe Tit, ...... 3.914,428 3460,13 174,116 W.071 3.740,312 315,972 All- Ple or N..a so ...... 0 F,oun- Pit, ...... 4.93ffn1 147.211 ~,956 15.109 4.4011,264 131,375 T11`i 11 Rnlonsl ".11 Onnortir stx,cr.i, __ ...... I ...... 27,142 1 .. 3773 214 12~1,369 o P.roxxxxi, Ststut"' N rx".. sa 919 78 737 F...... 5,115 N 932 311 2.511 7,834 X111 on.l...... I...... NNI,g-e N M 14,379 I~flw 5M N 453 13,19'u, Oth,,-. 9,131 708 263 21, 1,868 688 ToItti... , ...... 10.125.011 INA. full WOU 9.286.921 li assessmembf and ..sea transferred to Juatt- Department c_.a. -includes quick --n Y ...... _ 119 - 12A M2 22,ND 92,197 97,080 32,4U Esr. I. lr,~ ...... ~. I~ ...... 235.910 89,672 26.01b 27.032 2011,915 wNo FO., to Pay ...... _ ...... 201.778 56,985 55 pas 42.3891 146JAOto 24.595 F.-I Tri. Nee.1, ...... 11 to 1 to Bod c .1, 2,41 ft 1 &1 . 2,2150 41 Fx- 15,811 26 371 526 15,437 4 NMI ~,877 83 65 3,11a,12 4,112327 125 3N W,WD 3112,01 103.111- 1.2,1. NdIfan 1.1.6 oelln, ~y ...... 1 2.1-.02 281 460 173.326 41.186 2,020.6911 ZPI,27178 .,.or art 2(e all 128 2113 I'si-to Pay...... 2 M 013 90,780 436,410 20,4161 2,1%.603 (3.319 Fixtinl[ Tax pettiest...... 1.111~~711 46o,:39 25ell. 'a5ew 2,755.819 MI331 BoJ ii _ ...... 30 13 .7 2.300 77 125,210 1,570 Paod;._...... l5f 2,630 1., 225 1.406 2.405 Table 13-Results of collection activity Orn...... 157 55 a? 5 . ?a `0 IlToft, ...... T.91nfW 09,4T2 NI,5* 173,145 7,10,011111 Ni (Inthousands) I DI,1v,.vxy ._ ...... 3u&&2 15431 28 1 M 4.626 318 W 'a'ap, Dafly Nmx-c, ...... ,, ...... 14,155 29,5711 13119 32,05ir 1,036 -2,477 F,elun,F-Ito fty '' .. I.. I I.. I ...... 254.203 5.032 57,511, 2X3 196667 21659 11111410 r TiuD po,h ...... um 9.979 ~ 679 2.655 4%641 7,323 Sad 3,572 21 19, 2 3.381 19 ...... 67 Its I par 972 568 on., ...... 87 40 11 76 4o T-I~ _ ...... 1113,11M 61,076 10,70 Q.m $70.073 .,3.3 J-m.ry ...... IN 1:172 Opening 2.3M Etu,fi, of Call ...... 2149 ,4`42.272 iff'on Spw S.1891 39,258 12,8319 It,U62 pricesn ons ...... -I to 14 2 1 coew I-ory, Fort.,. to ...... 21.115 23,193 16.1,11 7.m ipiq 5',ii,tut ...... i~072 1,2N Bel c,-r ...... 25 31 Pemity and I...... $2,912.774 0.630,892 68 69 30 2; 38 lueoro, of AIs,,tttx,1 Ttlu. 27 322 32 wf,,_ - "gl', ...... 47 37 12 43 25 112 CansI...... oream - ...... 1-1 ...... 1,11.70 121,10 "A. M,41115 I?,- Nvotiz om...... lfl,em, lintftInti ~Imtlty I cxxi i-ory ...... 1.1- 10 Sign end FWU. to No.. I. Identification W.- ...... 25,529 3,l 24301 1985 1,228 .11,59 13, .1 NitI,- compl- C_ Nt,,w,n,y ...... 1 D3 ~ MA25 25 230 131N n.D75 n.321 "..a.- ...... In F,Ilue to fty ...... 66 2.15~ U.OM I.5W V.406 1.0%1 Bed C~ ...... na w 2 (IM I. ceepIcnint, lit-itttiti F ...... :::::: * * .. E.--rN. IA--W. :: ~::::: :::::: ~:q.:::::: :.:: 3~ 9 n 9 sx: F.. I I. U. Fri...... III.-We 21.oo:M fiff.ars6.6% 2"1."'m 10,781 17.185 L,my SrxII Uion IIII'd ftirri N... of Rnaxemy useir - .I ...... Tottl .1 ...... *.*. 19.1193,715 2.112.450 2.UB.717 S51.6.1 17,51115.04111 1.552.M Notes: Amounts may not add, due to rounding. With the exception of estimated tax, penalties can apply to any tax Year 'Data revised fro, previous annual report Abatements. ca;~ppry55 . to any tax year, L.. them .hp~ud`Ta,l'mc Identification Number, failuoto report tips. miscellaneous udes Forms 1120, 990C and 990T. Ittricludes Forms940. 941. 942, 943.nd CT-1. -IncludesneghgenceamForms ast-tedt., 5 Includes A~i5227. 990PF. 4720, 990. 4638, 2290, 11, 11B, 11C. 720 and 730. - Includes negligence,1041 scellaneous and estimated tax. I Penalties are fro' pro essing of mcn,idual returns only and do not reflect other penalties assessabie under the Tax Re- form Act of 1976, Code-S=ions 6694 and 6695. I Includes Forms 1041. 1065 and individual retirement account file. Division receipts and dispositions of cases not before 74 Table 1S.-Appeals Table 17-Requests, for tax rulings and technical advice (closings) 75 the Tax Court (nondocketed)

soo)-

To., .. ~...... 10.353 Z243 11-1 -sr ...... 2.923 2.895 28 ofOkme- -- 0,-nil-...... a- 000,. 4,276 3,1yW 322 Envol,,es, Pl- , , - , ...... -, ...... 3.1. 1.261 1.893 P---Y (1) (2) (3)

P~rvorti ooope, I ...... - '23,227 5,062,7110 168.881 42.= 3,M1.317 70.- Rsoy- M, 19 2,301,M2 5%wa DMP~ 30.611 .M= 52.123 ..p,=. , ocM, mploy~ One aff--, ...... I ...... I I I I I ...... 1,5'a 3800) 1,269 By tax,e,, , ov- an aut,oxy -111 ...... 2,097 1161291 1'acs P,tJteril- o,in --Cours,,l ...... 417 o..' ko-oo, 30 ...... - 26,9284 1 7.392,M5491'149 180 205

a. - A,,,,O. - to - . douOyO)

Seou, c-. Ond P-M (1) of (3)

dopo,,~,o o...... 38.619 1113512n 209 116 By qy-rt ...... I ...... I ...... 30,611 579,138 205,821 UhNysso(ft,O-mxxscla-xcsi rotplenvin andoffer-rvares, Table 18-Determination letters issued on ERISA employee benefit plans 8,'e'.t.m)...... 1,510 37,003 1.21P "__.,r dlltut on ninuory .11- ...... 2!17 'Ol:1721 Zw filw, to,af-ed to coxnel ...... 401 119

IA case represents taxpayers grou ped together by tax periods Mth common or related issues that may be heard a nd ~ispo-edl of together. Data revised from pre,ous annual report. lha~ sen. Porolv- looming ~Solx Tire,

I-W QvuOO-.: Q.. "...... 471 18,115 27'.. Is a 46,311 111853 (14.167 P-apainEnnio" 283,1M 176,892 MW 'S.N5 11 1209 M7 1,M7,866 2,746.903 W, Quo"Isd 2 13 Table 16-Appeals Division receipt and disposition of Income, estate and 10 0 0 25 12 37 cases petitioned to the Tax Court (docketed) 0.11...... ty~ 19,197 37,573 M 2 57,822 ~.294 92.116 gift tax .1 oh,eyow ...... 0 1 11 0 0 12 t 0 22 T-ovd .: Qua ". .. ~~ ~ ...... 37 2,737 5877 0 0 8.65, 3.S`6 12,59, ..' QUMf...... 0 10 16 0 0 26 9 35

A. Prei a-

noso, (in 'Humb's, lidlow"c" Rao. c-. Ovid OW. w "Y (1) (2) (3)

I ...... - - - -9,324 l.M6.574 15AS 17 1 .199 eN2 ;;:'3 W 482 5.184 5.7% Miles red ='Z's"i ...... I'Mr, 14. 86 251 P...'uxN'W ...mild 1. 1 ity. lumisoUixt x465 601,206 4,773 sw= 30 1 ...... 9,119 1304.591 11.494

0. nOtoo.obbo- . 61~1- Table 19-Number of returns examined by type of exempt organization Apo-

'O'embO, DOllot- c-' red UvOy- Fir 1080 (1) W-q(2) (3) (~)(3) ...... lon-1. F.unaa- ...... 3913 arae- ot, =I ...... 11, 13an3 3.362 ~. -1 ~tu- T-1 ...... I I I. II - - ... 52 623 3,305 cX3) .1 Othisr...... 8.. -U, :: : * , 5796 g-, sooW .0 D ...... I...... 091 1 3,3217 4 465 372.355575 M ~'c XS~ =r"29 1,1xxt-...... 1,25 ur.,-...... d 501(cX6) 8- Loagm ...... 1..98 50 (CX 7) ...... Se -ndROcnoa-Gl.M ...... 1.608 I A case repreNnts taxpayers grouped together by tax periods with common or related issues that may be heard and N, 0', ...... 2,527 U1 Form-' Cooloynav ...... disposed. of together...... 575 Data revised from previous annual report, T-1 ~...... - ...... I- 76 Table 20-Number of active entitles on exempt organizations master file Table 22.-Intemal revenue collections, costs, employees 77 and U.S. population

191. I'm cx,,e~ C-nu.. Ong."u. urx., t 0 ~-_ ..~ ...... 110 12 cxs~ T_ libleafull lifthoO, Cap _...... 5,324 5.2,58 $IN O'l (3) .1...... 1 ...... -W,I 315 -31S.- op""(1) (2) (3) (4) m(4) S-aul ..' ...... 127 2~ 129.5~3 (5) M (1) "iart Is) Labor, Agn:unwe Dgarizat- ...... I...... 85,479 85.774 1951 - ...... 245,80),538 W."5,686.315 0.9 1 P, Sze W5,71 M1005 4,208 lksxv,s,, L.9a. 46 WO 48,717 1952 ...... 271.872.1% 51.597 (7)S-lalur R-ranclu ...... 012 157,553 412e2 56.209 3,~ 52.256 5d577 51,922 M.590805 0 M 160.1" 4MM W.40 19.64?s I'l-mal S.'_ ...... 13z4I7 137,449 ...... 2R.M,107 3azu, (10) 1,122 7,7M ow Man .21 09 51,411 2.707 48,704 ...... 16,525 16,178 INS ...... 27S.M278 .288 02.000 042 165,931 M so Kfaq 2,M 0,215 JIIjT--RM11=') "- F"'. -C ...... 10 12 INS 2NAW,710 75.112,6,19.11M 040 168,903 (12 4891 4,.57 .4.71 50.692 2.W 48,M Cia,aa c -1 ...... : , .~ : M5 ~7,814 W.171.917.000 0 M 171.913, 'W 16 s"N" 2.5V 48.= (1.)(13) L"... "". 5,752 ~.w M7.428,781) 79,978.4764ful 042 1.,11112 Chou Un...... 5,119 5.639 959 457,33 0.616 2.909 47.907 pl~ In, I-,,n,,C,,Pal in, ...... 1.312 1,110 ~.469.228 79,7117.972.805 0. 177.830 -3 s'226 2,11,69 0.257 0 Firanc, Crop Domisle, .. 26 22 Im ...... 363.735.359 91 zrAfA2.823 040 1 %s671 (17)S.P-"aUn-x-.ft.ftTnvsxnf) card ...... 79" US 1961 ...... 507.96 51.047 2,910 48,137 Eneo`.FurdWP,esanTnru ...... 413.M,2. 0 " 180,01 51391 M~206 3..2 sol. ~12 :.. ~ 450 080 4W W00,W9,245 045 ISd5M ~ 09 56.481 3,401 .'M (19Iwary"..'s,011ruba(An ...... 22.2103 22.2474 I NKI - ...... 314 1.,925,395,281 017 issM 55934 ~'711 L,.l 11 S ...... 9.692,1211 3,657 KOU (21) li, "LUZ11.1- OT-7... I. I ~ -1 ...... 112,26),257,115 049 191.889 5Z6,03 SIAS "IM9 57.220 501(d) fux,,avi, .. Akiaald,. ftent.h., 3 55-17. 71 114-,SXI,7z1 o. 1.,.3 Seas, 62.zas 3.881 ..217 121 Fl-.s .1- 3,312 2,98567 624:86 9n 128,8111 048 191 mm M'508 3,982 59,526 T-1 C'...... -.1. sia"In 6670802N 148 374.814,- 0,45 198.712 74669 ...6 3.- 62.052 m:1903b, ~1.363,837,sss 04S 200,706 7M48 IN.IN 758 785 475 U.574 3,1167 63,607 'This figure does .not represent a true universe of section 601(cK3) org nizabons because certain organizations 187.919.559,M 040 202.677 927.19 M.Da, 3.862 62.202 Such r; churches their integrated auxiliaries and conventons o' associations of churches need not apply for necog. 886,151162 195.?22.M,497 T" 045 MI 878 955 31 68.6113 4.103 K5110 hition of exemption with the IRS unless they desire a ruling. When issued, the ruling letter goes to the central organ, 1 M17,065 297411 191 6,17.196,1111 05, M7.M W50 cl ".358 PI.614 1972 12 390 20985 73158711 05" Mail M.99 4,1214 "itionty but covers all subordinate units. Only the centrat organization is on the EOMF where it is counted as one enti- 1973 1.162,009~45 M7:787:~, 64.415 nonintegrated 1974 ?1,170 `= 69.666 Subordinate units considered auxiliaries are on the EOMF and in the above figures since they may 1.312.!M~661 268,952,253,M' 00 2; 01:9'01" ~: ~1NO,211' M.921 4.310 1.61, be, required to file in;olmation returns as prescritied under IRC 61033 appli ations or exempt status under IRC 501(CX21) have been approved and witl be included in the active : ; 58u,.-As 293,822,725,772 0 5' 213.M9 1.375,U af,M9 4.5411 77,8N Five .1,:667311 09 302 519.791.922 0,56 215142 1.41)[5,14 84,2U 4,732 79,532 entities on the EOMF after processing. 19717' zN:M7M W'13 416.730 0150 217,329 0,743 4.~ 75J49 11.;'1 -1,962.129:287 3199~r9 1.3625 049 219~033 1.826 61 85.329 4,919 50,410 *2,116.166,276 4Sd.I "382. 0-60 220 999 2 M 32 .10X x. 78 a,". lead 'Z2150838.&W 51%375~2'783:013361 . 2MM 2~M . 87, 5,114 82.350

-This igure represents actual IRS operating costs from FY 1975, exclusive of reimbursements received from other dasseZicentsisp,tehrfoosiremaemdoW Iratn,ngdcmh rcf shgtueraer! ioorl 9375 may in som e case in ciguednec:reesimf urhislastheesompa I to It agluters st heo aiscl ipn rc u om In -Economic Stabilization Program average posahonanclubled in 1972, 1973 and 1974. -Federal Energy Program average positions included in 1974. _1 972 adjusted by 3,990 average positions to reflect the AT&F transfe-July 1972, AT&F Included in years 1948 - 71. -Eleven average positions transferred to office of the Secretary in 1965. Twenty average positions transferred to Of~ fice of the Secretary in 1963,

Table 23-Costs Incurred by the Internal Revenue Service by activity (in thousands of dollars) Table 21-Disposal of exempt organizations applications

ii,li,,l~,~,~lf C_ Apleii,erstai, by lusher T.W led Sia,lara, IRC ~ "I(C) torrill App- Dilislial T-1 flin non IM 1979 1140

Trw0 la. el, ...... 2,~E!1271 2291, 6 I':1...1l ~21 ~ cumat-&px- undiv ftt at C W- .. ~ ...... 1 2 z I -nated I...... 2. 16:1 66 2.280"Wit !:.'23'' (3)'hivieIII, Cora, ~...... 290 1 5~1 4"M4774935 "'i49,1,288 A09-7-saft. "IC ...... 26 1107 7". 5lbasi siniff E-' S~xsl virrala, ...... 2.4.24" K M 3,5=19 T-I ...... i.abx, AWicultar, Org ...... 411_ I 21 '.7 1M.11" MUMS 115,754 MAN MA28 21.1110,11 Ei.- Dn- ...... 12,977 10479 L1.1a. . 31"i .nl-l ~xn a ...... 10.2N 3.,P`5 2.743 (7)aa `-Se,xxI .. ll.nahx~ C1.Of ...... 1,322 172 2J8342 31,169 335"') 25,842 28.357 5'M7 5.492 an "... f-wit...... 19 "1S 20~31 23330 15,891 15!4117 1~417S 14, 4:1 4S '21 :M 76 46, (10) vaunum, E ...... 6M 7 679 T....1 Ruling. a. Sv...... 22.501 241 (11) Dowes, Fal-I" ~,."...... 18 52 1 N 24.031 18,970 M,583 3,~ 1.8 - - 1 ~ - luitar,,f, (12)Sin-ritI3n 7.-' etlnwr-~...... 114 23 76 212 ...... 732MS 787."$ 01.982 533,0811 2211, 6 491 263 G.'s ~ ex 521,937 _'M M1198 (14)C'emitu"axC-7...... is 5as 281 M2.605 126.01 1251 142.807 13.3% 14898 11,239 12.422 2.151 V5)M_ In, Cxx,-...... is 2 4 241 ...... 197,612 M,W7 2,476 ~j76~CM.t1F,unC,Cr,p0mna- 1 KIM ii 113"IN 1091515 (1s) S.W--.l Ji,ar"ethent litheld Trasts ...... 55 57 Ebanelakila, ,el Appiual: P-Tralf ...... 1-1 ...... Fur- 1 M,M3 639AT M3,31115 M" 126.711111 IM.M (19) E-inims'Orip-ohn, ...... 29 E.-on , ...... 719,568 779.637 12a) W-M-0,galuAtern,Lilgin S ...... IS 2 11 Apai ...... 598.932 651,975 120.G36 127.W2 (21)SaCkLvngTr,zs ...... 50.525 59.750 44,453 st,"Is az72 s~ Solid) ftelrtolK SM Rll~ioxr agInuafton, ...... 50 in C- Sennex, On, of Claina,M Ed-tonli OM 2 1022 47.,.2 sn'li 331.1. 421jiss 52~ F.- Cx.-wis ...... 69 11 22 d.,aa,'_TW Fna~ 1~'. so...... * *...... IM.185 "no 431"S Mlenai Ofte AWIngs IW Dnenanaso, Lesm ...... 2.M7 276 1131 3.964 140.01 106.179 116,732 24,006 23.Ng M 613 297 N7 men1 248Mile305 .9,79310 11:12 ani lit...... M'M 1.91. Mill .1w Eni Plem;i-snixt W,. N:963 K 07 M7 to I. -1 ...... I Applications withdrawn by taxpayer. incomplete applications, etc. 7'IM 10.037 SW 8,57. 1,069 L35S 78 Table 24-Costs Incurred by the Internal Revenue Serrice by office Table 24.-Continued 79 (in thousands of dollars) (in thousands of dollars)

Eq,aWmart retail Travel T-1 E.1-1 offee, Internal arref, fatil or region I- -.. offee. di.efol . .0. (1) (2) (3) (4) (s) (1) (2) (3) (4) (5) aaa- a, ij...... A. Total Iniameal rather- Seakor ... - ~... , , - 2,2111,T76 1,725,130 61,781 nlm 412,M ...... 3,157 2.992 301 8 156 1,1a-l 011...... "0,09 1408W 1210 ISM 279.976 Chrorig ...... -... -- ...... 53,0al 49,585 1.30 U 2.US N-Atert...... - - 209.250 28205 5737 727 M.151 ~ ..n ...... 12.470 11,308 W3 2. 531 1,10-Mla- ...... 206.605 188'(Ss 5007 52, 12.381 ...... 3,321 2,855 281 1. 171 smm.ae ...... - 241.519 212,873 8305 1,085 19.256 Mil-e. .~ ~ ...... 17,031 15669 Us 40 M central ...... - ...... 185.03 165,.' 6,09 w 12.W ona...... 8,127 1,261 456 19 391 .-ral ...... -,472 M.95" 7,6916 63, lZ21st St. L...... 2S9SB 21,61 a 1.226 95 1.023 S.lh...... 220309 195.555 9,019 674 15 061 St. Pair ...... 21,610 19,75a ".. 47 1125 vv...... M9 052 .1,813 10,851 1,713 z- M 5-1,ald ...... 13,732 12,311 119 29 673 35,26 11,252 4M 4W 1 M ..- nep~rlhf-d T,-...... - ...... 255 21~ ...... 17. 13 21,.8 i.w 57 822 fares. 01, Se- C.- ...... 47 w 42,Ui 40 151- ..031 011-11m mal-10caratenit- ...... 13 929 U18 13 Se- .." ~-,,rcam - ...... 1,~'118 8377 w .1Z A ...... I Us Us 12 21, h.ce.c.l...... M.M 213,199 Its11 S3 5.714 A-n ...... Q,376752 362 56 1,96a 91 865 c...... Z .313 M 7 142 dlazft~ driecara' W- ...... 37871 xwa 1.. 2.15, earifee -) Den, ...... - 15.985 11281 762 N 922 An, ...... 0119 18200 45) m 63 Us. R.k 8,989 533 4 4N M,a-~n.ntri, ...... 15,4118 ;3.7941 367 Sit w on- ...... m 36 800 So.t...... 82 2.W W"hriso-0- c ty ...... ;,.;,211 4 3:131a 731 31 (336 Ca-1 ...... 1 11 ...... 1, ~-*.- - .1111, u 717 :...... 1 (4t) 53 9 528 m.w...... as. 12,521, 653 sa-ti, 1 n,N 49 am 3142'a s'; 26 .-I ...... - ...... 3's 895 '319 '.'7'%7 Avi,t,, Sf- C,m ...... N6 42.791 as wirs,am ...... 21.5m 18.172 1,215 112 2,06, ...... 1:97~O. a, 363 ...... ':3%1 1 "'31S - 1211' z,431 C learelordare,--and-ea- H lea'ah- ; ..107 3.590 307 16 9a aftbany ...... 211 ~6 613 H-1...... 6,170 5..3 251 28 218 ...... as I':2 as 225 a 223 78.88 71.869 2,887 215 3,51, Eloston ...... 3512 32,179 890 106 952 Phaa- ...... 122.200 ~1.17ol'? 529 5311 Brooklyn ...... U~(M 32,701 5't M 365 P- ...... 547 . SES 32 171 ~al ...... M,166 1633't 672 29 11,31, R...... 8.18, 7.115 w M B.n,...... ,72:,171 1 2.S 13 1 U 7 San i-ar, Cr, -- , - .. 5979 5,460 262 23 23a .mlord ...... s si:~ 665 M .5 San F-C- ...... : 53,280 48,506 1,917 213 2,641 Man ...... 66.59" 63 51 915 1 M 1 r876 sal...... 20.DD5 111,0116 961 6, 91, Porter-1, ...... - 4 14; M7.6 V 26 pg_S'_Camri'Yvaere, Ra,,,~thilarad Training ...... 373 30 - ...... 5,907 437 is 22721s 48se 360 41,606 212led 5,s 71 -Al-r. Camml- lanN 2M 2., 76 2 851 49.7.11 21. 'IN - Se- nt.r ...... 1,296 36,35li Z5 146- 1.659 11-khave !k-eC am er ...... 46,527 40.731 12~ W 5.573 Note: Re-b-arnents are mcludedm the above fig,res. arial 1. aon- n ~ 17~" 27~ 71 S N- ...... 5m 12 1,2. 7? '.7It ...... 33751 31,767 121 163 6,0 R-u,h ...... s*5 43 755 Fiv,h-al ...... 41, -M 4211 1,167 wiah,,g- 4 10;zal 3,172 1261 96 177 24 2Si Fivoor-Centrill- T,..W ...... 2361 - Fibred,lP.. $a-. Gan...... 41 U7- 36.Sii 17 21 ".9 25,1. 1,371 79 2.NO Table 25-Personnel summary &-.g...... 12773 11 .60 613.. 7~ 5, w...... 8 a78 U27 3 32 G...... M 240 111.350 1,024 63 W3 -ii Peartlone - -.Y- . Jack ...... 11 1 :: 8~142 7,239 30 realized cleateal,eer ...... 41:1jil 11:122" 2 521139 121 2.-3'0 ran ffeal 'In Im Us 904 w M 758 ...... *..* 25,t1 Behaae aefel ...... "me I&WO ".311111, ".a" Aoa.ta Sahroa C-11 ...... - '043.3372M 37.72- 391 5.12610 F,emaihe ...... 71,117 72,513 71.771 70.M m-ni. serv. can...... 3`9 X366 17z1' lu 4.677 Is.. 15.497 13,627 is'.93 central: ",.a 1 6,1" 4.03 ..97. 0-nnat, ...... M 922 19181 771 26 E)44 RW-1 draftees ~ ...... :...... 'B" 02.M ,?m $1,41141 .021~7121 31.6313 ~:l1 79 27.41 .1M `514. Dethat ...... 7. 44M 2.072I~200 'am,, 9,03, 10,01 11.1.2 wav,sw ...... M 1710 17M,I1 .1 383 ...... 767 5`2 w Lo,aa,iil...... - 12M 621 7. 254 592 Ortre ...... -- ...... 1~300 4:390 U2" 21:72 P...-r...... 7419 6,U5 44 421 Tar,pai Sani ...... 74 074 4.05 at central R",01C, valizes! T,an,n ...... 293 - 21)2 1 T..,, sah- S-1...... 633 67, 666 665 Q-1-1 Sa,v.. came, 4.1177 ~ 267 163 Nis 5,2(h T.- Se-.. Rion-all,...... 1.05a 1,070 Mae 1.01 .3~041, 3 Zfal 3'"55 23, Mull n,,e R-u. Ama 13,71591 1373 13,N7 13,581 T. =-. 4"U 5,:59 4'M 1.459 other ...... 4.?M , 5.1251 before, ...... M62 W6A70 1 .427 ...... : :::*: : : :: 1.2m ..T Othi ...... 217 235 250 "M21, Apteel. 1.." 1.7311 1 ...... - 128 121 129 Om ...... $13 721 ni 7W ... ~ I. I ~I I ~.. I...... "M 3,404 a'- 813 S-*1 A. ant, ...... 2,:786 28M, 2.MI 2.782 Dil,...... :wi ':.1,3.a 1 ...... 3.OU adea 3 MT canitharbred sen,eara ...... 4,"' 4 1" MW Rea- ce,aaae, - : :...... 1"."1 :,4. so 41:10 lt.,hi,ral hitea...... :::: ...... 0 - all

Note: Reimbursements -included in above figures. ~hftud a terminal leave for average positions realized for entire service. nc d:S Office of International Operations, National Computer Center and Data Center 81 60 Chronological List

Commissioners George S. Boutwell John W. Yerkes, Dana Latham Office of Commissioner of Internal Revenue Massachusetts Kentucky California Created by Act of Congress. July 1. 1862 ofinternal July 17, 1862/Mar. 4. 1863 Dec. 20, 1900/Apr. 30, 1907 Nov. 5, 1958/Jan. 20, 1961 In addition, the following were Acting Revenue Joseph J. Lewis John G. Capers Mortimer M. Caplin Commissioners during periods of time when and Acting South Carolina Virginia there was no Commisssioner holding the office: Pennsylvania Feb. 7, 1961/July 10, 1964 Commissioners Mar. 18, 1863/June 30, 1865 June 5, 1907/Aug. 31, 1909 Joseph J. Lewis of Pennsylvania during William Orton Royall E. Cabell Sheldon S. Cohen from Mar. 5 to Mar. 17,1863 New York Virginia Maryland transitory Jan. 25, 1965/Jan. 20, 1969 John W. Douglas of Pennsylvania July 1, 1865/Cct. 31, 1865 Sept. 1, 1909/Apr. 27, 1913 from Nov. 1, 1870 to Jan. 2,1871 periods. Randolph W. Thrower Edward A. Rollins William H. Osborn Henry C. Rogers of Pennsylvania New Hampshire North Carolina Georgia Apr. 1, 1969/June 22. 1971 from May 1 to May 10, 1883, and from Nov. 1, 1865/Mar. 10, 1869 Apr. 28, 1913/Sept. 25, 1917 May 1 to June 4, 1907 Daniel C. Roper Johnnie M. Walters Columbus Delano South Carolina John J. Knox of Minnesota Ohio South Carolina from May 11 to May 20, 1883 Mar. 11, 1869iOct. 31, 1870 Sept. 26, 1917IMar, 31, 1920 Aug. 6, 1971/Apr. 30, 1973 Donald C. Alexander Robert Williams, Jr. of Ohio Alfred Pleasonton William M. Williams from Nov. 28 to Dec. 19,1900 New York Alabama Ohio Apr. 1, 1920/Apt. 11, 1921 May 25, 1973/Feb. 26, 1977 Millard F. West of Kentucky Jan. 3, 1871/Aug. 8. 1871 from Apr. 12 to May 26, 1921 John W. Douglass David H. Blair Jerome Kurtz Pennsylvania North Carolina Pennsylvania H. F. Mires of Washington Aug. 9, 1871IMay 14, 1875 May 27, 1921/May 31, 1929 May 5, 1977 from Aug. 16 to Aug. 19, 1930 Daniel D. Pratt Robert H. Lucas Pressly R. BafdrIdge of Iowa Indiana Kentucky from May 16 to June 5,1933 May 15, 1875)July 31.1876 June 1, 1929/Aug. 15, 1930 Harold N. Graves of Illinois Green B. Raum David Burnet from Jan. 23 to Feb. 29,1944 Illinois Ohio John S. Graham of North Carolina Aug. 2, 1876/Apr. 30, 1883 Aug. 20, 1930/May 15, 1933 from Nov, 19, 1952 to Jan. 19,1953 Walter Evans Guy T. Helevering Justin F. Winkle of New York Kentucky Kansas from Jan. 20 to Feb. 3. 1953 May 21, 1883iMar 19. 1885 June 6, 1933/Oct. 8, 1943 0. Gordon Delk of Virginia Joseph S. Miller Robert E. Hannegan from Nov. 1 to Dec. 4, 1955, and from West Virginia Missouri Oct. 1 to Nov, 4,1958 March 20, 1885/Mar. 20, 1889 Oct. 9, 1943/Jan. 22, 1944 I Charles 1. Fox of Utah* John W. M son Joseph D. Nunan, Jr. from Jan, 21 to Feb. 6, 1961 West Virginia New York Bertrand M. Harding of Texas Mar. 21, 1889'Apr. 18, 1893 Mar. 1, 11944/June 30, 1947 from July 11, 1964 to Jan. 24, 1965 Joseph S. Miller George J. Schoeneman William H. Smith of Virginia West Virginia Rhode Island from Jan. 21 to Mar. 31, 1969 26, 1896 Apr. 19, 1893,'Nov. July 1, 1947/July 31, 1951 Harold T Swartz of Indiana W. St. John Forman John B. Dunlap from June 23 to Aug, 5,1971 Illinois Texas Nov, 27, 1896/Dec. 31, 1897 Aug. 1, 1951/Nov. 18, 1952 Raymond F. Hairless of California from May 1 to May 25, 1973 Nathan B. Scoff T. Coleman Andrews West Virginia Virginia William E. Williams of Illinois Jan. 1, 1898/Feb. 28, 1899 Feb. 4, 1953/Oct. 31, 1955 from Feb. 27 to May 4, 1977. George W. Wilson Russell C. Harrington Ohio Rhode Island Mar. 1, 1899/Nov. 27, 1900 Dec. 5, 1955/Sept. 30,1958 112 Principal Officers of the 83 Internal Revenue Service as of September 30,1980

National Commissioner Personnel Employee Plans/Exempt Technical Advisor to Assistant Commissioner Office Jerome Kurtz David S. Burckman I Organizations Training and Development Vacant Deputy Commissioner Orion L. Birdsall Assistant Commissioner Division Directors: S. Allen Winborne William E. Williams Securffy Standards and Evaluation Corporation Tax Commissioner Arnold B. Gordon Deputy Assistant Commissioner John W. Holt Assistant to the Raymond A. Spillman Marvin Katz National Office Resources Management Individual Tax David F P O'Connor Herbert J. Huff Division Directors: Mario E. Lombardo Actuarial Tax Forms and Publications Assistant to the Commissioner Ira Cohen Robert 1. Brauer (Public Affairs) Compliance A. James Golato Employee Plans Assistant Commissioner Billy M. Hargett Office of Chief Counsel Assistant to the Commissioner Philip E. Coates Exempt Organizations (Equal Opportunity) Chief Counsel Deputy Assistant Commissioner Joseph A. Tedesco N. Jerold Cohen Eugene D. Alexander Glenn Cagle Inspection Special Assistant to the Chief Counsel Taxpayer Ombudsman Division Directors: Richard E. May Harold M. Browning Appeals Assistant Commissioner Howard T Martin Robert L. Rebein Deputy Chief Counsel (General) Assistant to the Deputy Commissioner Examination Stephen M. Miller Dominick J. Lantonio John L. Wedick, Jr. Deputy Assistant Commissioner E. Derle Rudd Deputy Chief Counsel (Litigation) Criminal Investigation Joel Gerber Taxpayer Service and Thomas J. Clancy Returns Processing Division Directors: Deputy Chief Counsel (Technical) Office of International Operations Internal Audit Lester Stein Assistant Commissioner Joseph G. McGowan Rudolph Arena Technical Advisors to Chief Counsel Heironimus Internal Security M. Eddie Collection Daniel F Folzenlogen Deputy Assistant Commissioner James R. Starkey William E. Mulroy Peter K. Scott Stanley Goldberg Data Services Planning and Research Staff Assistant to Chief Counsel Division Directors: James T Fuller. III and Review Assistant Commissioner Program Planning Assistant Commissioner Division Directors Suellen P. Hampy [Donald J. Porter Russell E. Dyke Administrative Services Returns Processing & Accounting Deputy Assistant Commissioner Division Directors: Joseph H. Hairston Fredric F. Perdue Joseph E. Bishop Internal Management Documents Criminal Tax Taxpayer Service Albert C. Shuckra Robert P Ruwe Walter M. Alt Division Directors: Data Center, Detroit, MI Legislative Analysis Disclosure Litigation Disclosure Operations James E. Daly, Jr. Rondal C. Blankenship Vacant Raymond L. Rizzo National Computer Center, Research and Operations Analysis Employee Plans & Exempt Organizations Tax Administration Advisory Services Martinsburg, WV Walter E. Bergman George H. Jelly Douglas S. Ormerod William E. Palmer Statistics General Legal Services Systems Design and Programming Frederick J. Scheuren George J. Shaw, Jr. Resources Management Daniel N. Capozzoli General Litigation Assistant Commissioner Systems Support Technical James J, Keightley Joseph T Davis Donald E. Curtis Assistant Commissioner Interpretative Jerome D. Sebastian Deputy Assistant Commissioner Planning and Control Staff Gerald G. Portney Carolyn Buttolph Alan A. Beck Deputy Assistant Commissioner Legislation and Regulations Systems Development Office Vacant Robert A. Bley Division Directors: Dean E. Morrow Facilities Management Tax Litigation Richard E. Simko Management Information Systems Office John H. Menzel John Moundalexis Fiscal Management Joseph F Kump 84 E2

Regional Central Region Mid-Atlantic Region Midwest Region North Atlantic Region and Regional Commissioner Regional Commissioner Regional Commissioner Regional Commissioner District Leon C. Green William D. Waters Charles F. Miriani Charles H. Brennan 0ifficers Assistant Regional Commissioners: Assistant Regional Commissioners: Assistant Regional Commissioners: Assistant Regional Commissioners: Taxpayer Service & Returns Taxpayer Service & Returns Taxpayer Service & Returns Taxpayer Service & Returns Processing Processing Processing Processing Patrick J. Ruttle Vacant John Ader Gary H. Matthews Resources Management Resources Management Resources Management Resources Management Billy J. Brown Americo P Attorri Jack E. Shank William H. Ethe Examination Examination Examination Examination Donald L. Stewart Regina M. Deanehan David G. Blattner Joseph Slipowitz Criminal Investigation Criminal Investigation Criminal Investigation Criminal Investigation Richard C. Herman Willard M. Cummings Charles 0. Wey Raymond C. Turner Collection Collection Collection Collection Charles F Jones Leroy C. Gay Allen G. Woodhouse Raymond P Keenan District Directors: District Directors: District Directors: District Directors: Cincinnati, OH Baltimore, MD Aberdeen, SD Albany, NY Dwight L. James, Jr. Teddy R. Kern Thomas J. Yates John B. Langer Cleveland, OH Newark, NJ Chicago, IL Augusta, ME Everett Loury Cornelius J. Coleman Donald E. Bergherm John J. Jennings Detroit, MI Philadelphia, PA Des Moines, IA Boston, MA Roger L Plate James T Rideoutte John Edwards Herbert B. Mosher Indianapolis, IN Pittsburgh, PA Fargo, ND Brooklyn, NY James W. Caldwell Thomas L. Davis Gary 0. Booth Thomas P Coleman Louisville, KY Richmond, VA Milwaukee, WI Buffalo, NY Paul F Niederecker James P Boyle Lawrence M. Phillips Marshall R Cappelli Parkersburg, WV Wilmington, DE Omaha, N13 Burlington, VT T Blair Evans F Clare Shy Mitchell E. Premis, Jr. George Delegianis Springfield, IL Hartford, CT Director, Cincinnati Service Center Director, Philadelphia Service Center John 0. Hummel Norman E. Morrill Ira S. Loeb James E. Quinn St. Louis, MO Manhattan, NY Regional Counsel Regional Counsel Vacant Pete J. Medina Vernon J. Owens David E. Gaston St. Paul, MN Portsmouth, NH Regional Director of Appeals Regional Director of Appeals C. Dudley Switzer Francis S. Miceli Claude C. Rogers, Jr. James J. Casimir Director, Kansas City Service Center Providence, RI Regional Inspector Regional Inspector Roy D. Clark Charles E. Roddy John E. McManus Benjamin J. Redmond Regional Counsel Director, Andover Service Center Dennis J. Fox Joseph H. Cloonan Regional Director of Appeals Director, Brookhaven Service Center Donato Cantalupo Thomas J. Laycock Regional Inspector Regional Counsel John T Kelly Theodore E. Davis Regional Director of Appeals Gerard R. Esposito Regional Inspector Daniel Schiller 1 86 87

Southeast Region Southwest Region Western Region Director, Fresno Service Center Theron C. Polivlka Regional Commissioner Regional Commissioner Regional Commissioner James 1. Owens Thomas A, Cardoza Director, Ogden Service Center Harold A. McGuffin Dominic E. Pecotella Assistant Regional Commissioners: Assistant Regional Commissioners: Assistant Regional Commissioners: Taxpayer Service & Returns Taxpayer Service & Returns Regional Counsel Taxpayer Service & Returns Emory L, Langdon Processing Processing Processing Henry E, Leech, Jr. Bobby G. Hughes G. William Grabo Regional Director of Appeals Resources Management Resources Management Resource Management Ralph F Albrecht Carol M. Fay Raymond Asturnian Kenneth G. Rivett Regional Inspector Examination Examination Examination Vacant Philip J. Sullivan Percy R Woodward, Jr. Elmer Kletke Criminal Investigation Criminal Investigation Criminal Investigation Anthony V Langone Frederick L. Sleet Richard C. Wassenaar Collection Collection Collection Conrad L. Clapper Larry G. Westfall Paul R. Dickey District Directors: District Directors: District Directors: Atlanta, GA Albuquerque, NIM Anchorage, AK Michael J. Murphy Francis L. Browitt Frank R. Berrie Birmingham, AL Austin, TX Boise, ID Dwight T Baptist Robert M. McKeever Philip N. Sansotla Columbia, SC Cheyenne, VVY Helena, MT Donald L. Brei:han Michael J. Kelly Frederick C. Nielsen Greensboro, NC Dallas, TX Honolulu, HI Robert A. LeBaube Richard C. Voskuil John D. Johnson Jackson, PAS Denver, CO Los Angeles, CA Merlin W. Heye Gerald L. Mihlbachler William H. Connell: Jacksonville, FL Little Rock, AR Phoenix, AZ Charles 0. DeWitt Paul D. Williams Prescott A. Berry Nashville, TN New Orleans, LA Portland, OR Alvin H. Kolak Jack P Chivatero Ralph B. Short Director, Atlanta Service Center Oklahoma City, OK Reno, NV William B. Hartlage Charles A. Parks Gerald F Swanson Wichita, KS Salt Lake City, UT Director, Memphis Service Center Ronald V. Wise James D. Hallman Kenneth E. Luke Director, Austin Service Center San Francisco, CA Regional Counsel Michael D. Sassi Jack D. Yarbrough Carolyn K. Leonard Seattle, WA Regional Counsel Regional Director of Appeals William B. Riley Arturo A. Jacobs Tully Miller Regional Inspector Regional Director of Appeals Dale W. Gardner Douglas M. Moore Regional Inspector Paul F Kearns IRS OrgaiAzation Chart Departmentu of the Tress ry I FAW1.1curt. to th. Chief Counsel Coamilssioner commissioner Deputy Commissioner

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Tqional Commissioners I Regional Counsels (7 (7) Assistant Regional Rer'~:.l DIreCtor Assistant service Centers District Directors Inspectors Deputy Regional Is Regional (10) Counsels (21) Commissioners* (58)

District Counsels (45) -pu- ler-.

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