1980 Annual Commissioner ofReport Internal Revenue

I

Addenda:

Statistical data used in the texi and tables of this vol-unne are on a twat year basis, unless otherwise nol~ad. For example, date headed "1980" Pertains to theliscal year ended Sept. 30, 1980.Graphs. charts and ISM figures have been roundedand my not compute precisely Compared to the ste,IiSlical tables, which are based on unrounded figures.

The Commissioner's Annual Report is producedby 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 SuperintendentOf Documents, U.S. Government Printing Office,Washington, D.C. 20402.

1980 AnnualReport

Contents

Departmentof the

TreasuryInternalRevenueService

Publication 55

Introduction/3Collecting the RevenueReturns Received/9Mathematical Correction/9Tax Receipts/10Refunds/10Penalties/13Tax Credits/13Presidential Election Campaign Fund/13Combined Annual Wage Reporting/13Windfall Profit Tax/15Assisting the TaxpayerWrite, Call or Walk In/17Toll-Free Telephone Assistance/17Walk-in Service/18Disaster Assistance/ 18Educating Taxpayers/18Forms and Publications/19Informing Taxpayers/ 19Clarifying Notices/20Making Information Available/20Helping Other Countries/21Problem Resolution/21Enforcing the LawExaminations/25Examination and Correction Results/25Large Corporations/25Tax Shelters/27W-4 Program/27Unreported Income/27Quality Review/27Appeals/27Criminal Investigation /28Cooperation With Others/28Illegal Tax Protesters/28Collection/28 'Service Center Coilection/29Nonfier Identification /29Workload Control/29Returns Compliance/29Bankruptcy/29Offers in Compromise/29Child Support Obligations/29Information Returns Program/30International Operations/30Compliance Overseas/30Assisting Taxpayers Abroad/31Tax Treaties/31Employee Plans/32Exempt Organizations 133

Commissioner ofInternal Revenue

Managing the SystemResearch and Operations Analysis/35Major Research Projects/35Taxpayer Compliance Measurement/35Statistics/36Tax Models/36Legislative Anaysis/36Technical Activities/37Updated Procedures/37Internal Revenue Bulletin/37Art Print Panel/38Internal Audit/38Internal Securty/38Integrity Program/39Fiscal Management/39Personnel/39Recruitment/39Labor Relations/39Awards and Recognition/39Other Personnel Programs/40Centralized Services/40Facilities Management/40Paperwork Management/40Other Facilities Programs/40Security/41Training/41Equal Employment Opportunily/42Data Services/42National Computer Center/42Detroit Data Center/43Chief Counsel /43Criminal Tax/43EP/EO/44General Legal Services/44General Litgation/44Interpretative /45Legislation and Regulations/45Tax Litigation /47

Appendix/49

For =to by th, Supefint,,dont of Dmarrents, U.S. Go-frit Printing Offim, Wwhington. D.C. ~202

Introduction

This is my fourth annual report as Commissionerof Internal Revenue, and my last. I would there-fore like to discuss some of the goals, accom,plishments, unfinished business and frustrationsof tax administration from a somewhat broaderperspective than is customary in an annual re-port.

In my letter of resignation to the President I said,"The fair and sensitive administration of tax lawsis crucial to the existence of a just society. I feelprivileged for the opportunity you have given meto participate in this important work."

If we expect taxpayers to comply voluntarily withour tax laws we have an obligation to assurethem that the law is administered evenhandedly,that compliance activities are fairly directed, thathelp is available to cope with the complexities ofour system, that there is a fair and speedy meth-od to resolve conflicts and that complaints areresolved expeditiously. I believe we have madesubstantial progress in meeting these obligationsin the past 3 1/2 years.

Improving fairness in directing compliance activ-ities has resulted in substantially increased at-tention to abusive tax shelters~ Through abusivetax shelters many high-income taxpayers claimsubstantial unwarranted reductions in thei,m-come tax liabilities. This situtation, it uncorrect-ed, is unfair to average taxpayers and demoral-izing to the tax system, Dealing effectively withabusive shelters has proved to be a difficult un-dertaking requiring substantial examination,technical and legal resources. But it is an essen-tial undertaking. We have identified approxi-mately 27.000 abusive shelters involving about190,000 lax returns claiming deductions of over$5 billion.

It is worth noting that tax shelter activities arenot a problem inherent in an income tax. Theseactivities come about largely as a by-product ofprovisions put in the tax law to achieve nontaxgoals; to encourage or reward conduct consid-ered to be socially or economically desirable.Virtually all of the tax shelters we have seen arebased on the use or abuse of provisions in theCode that, because they are essentially expendi-ture programs engralled onto the tax law, devi-ale from the proper measurement of income: forexample, accelerated depreciation, immediatededuction of intangible drilling costs, immediatededuction of development expenses of mineraldeposits, investment credit, deductibility of char-itable contributions of property at market valuerather than cost and immediate deduction of re-search and development costs. UnlessCongress is prepared to reverse the trend of us-ing the tax code for purposes other than thecomputation of income as a measurement of

3

ability to pay taxes, ways must be found to pre-vent abuses of these tax expenditure provisions.

The willingness of taxpayers to "invest" in taxshelter schemes providing claimed tax benefitsunlikely to be sustained is, in my view, largelythe result of an inadequate penalty structure inour tax laws. The taxpayer is induced to play the"audit lottery" because there is little or no riskor cost in playing and losing. If the taxpayerclaims questionable deductions and he is notaudited, he has won, (We have reduced but noteliminated the odds against winning by in-creased audit coverage of these returns.) 11 he isselected for audit and the claimed deductionsare disallowed he may still have won becausehe has deterred his tax payment at a favorablerate of interest. This deferral period is often quitelong, particularly it the taxpayer contests theproposed disallowance in court, even it he con-cedes before trial.

While the Internal Revenue Code provides apenalty for negligence, it is often not sustainableagainst a taxpayer who claims to have relied onthe advice of promoters, their lawyers and ac-countants, particularly it the transaction involvesvery complex provisions of the law, and tre-quently even it the professional opinion con-cludes that the claimed tax benefit is probablynot available.

I believe a reexamination of the penalty provi-sions is in order, If there were a risk commensu-rate with the claimed rewards then taxpayersand their advisers would make a more realisticassessment of the allowability of the claimed taxbenefit before making the "investment." Suchpenalties could be limited to substantial deficien.cies.

The role of the professional adviser in the mar-keting of tax shelters has been a concern to theService for some time. Since the applicability ofexisting penalties may depend on the participa-tion of tax professionals in the scheme, theyhave a particular responsibility to the Treasury inundertaking such participation, In many taxshelter schemes it appears that the product ac-tually being marketed is the lawyers'or account-ants' opinion. 11 is that opinion that is viewed asgiving the "free ticket to the audit lottery."Therefore the Treasury Department recently pro-posed revisions to Circular 230 governing stan-dards of practice before the Treasury Depart-ment that deal with this problem.

An area of tax shelter activity that deserves spe-cial comment because of its growth in recentyears is the use of commodity or financial fu-tures contracts to create artificial losses and de-ductions. These transaclions come in a dazzling

4 PJ

I

array of forms and combinations. What they allhave in common is the claim of deductions andlosses far in excess of the taxpayer's actuallosses or his risk of loss. Essentially the taxpayerhas various market positions designed to bal-ance gains against losses so that a loss in oneposition will be roughly offset by a gain in anoth-er. The taxpayer then claims a loss on one sideof the transaction, simultaneously establishes aposition to secure his offsetting gain and defersrealizing the gain to a subsequent tax period. Insome combinations it is claimed that the loss isshort term or ordinary and the offsetting gain isa long-term capital gain. The Service has estab-lished special programs designed to identify re-turns with such transactions and to combatthese abuses. But legislative action is needed toprevent taxpayers from claiming these deduc-tions and losses in the first place, The issue isvery serious, involving claimed losses of hun-dreds of millions of dollars. It is an affront to ourtax system to permit taxpayers who frequentlyhave among the highest incomes in the countryto file returns showing little or no tax due as aresult of transactions with little economic signifi-cance.

Largely because of the use of tax shelters theService has changed the way it classifies returnsfor audit coverage and other purposes. Formany years returns were grouped by classesbased on adjusted gross income (AGI) and gen-erally the higher-income classes received great-er audit coverage. However, artificial deductions- largely tax shelters - have caused many re-turns of taxpayers with high real incomes andcomplicated financial and tax affairs to be classi-fied in low AGI classes with a correspondinglysmaller audit coverage. To correct this problemand more effectively allocate audit resources wehave changed our system of classifying returnsfor all purposes to one based on total positive in-come (TPI). TPI is a more accurate measure ofthe taxpayer's tax affairs. The result of this re-classification will be that more examination re-sources will be devoted to higher-income tax-payers. This reclassification will reduce the totalnumber of tax returns examined as resourcesare diverted from simpler to more complex re-turns, but will improve the fairness of the exami-nation program.

Traditional audit activity involving an examina-tion of taxpayers' records is not the only pro-gram the Service has for verifying compliancewith the tax laws. The information returns pro-gram (IRP), which matches information docu-ments furnished by payers of wages, interest,dividends and certain other income items with

income tax returns, has been significantly ex-panded in recent years. The Service has in-creased the number of documents matched andprovided new improved systems for the use ofthe information resulting from the match,

During fiscal year 1977, IRS processed 50.5percent of the 481 million documents received.The Service plans to process 154.5 percent of the547 million documents received during this fis-cal year. This very substantial increase is largelythe result of the Combined Annual Wage Re-porting program, Under this program employerssend their W-2s to the Social Security Adminis-tration, which converts the information to com-puter tapes that IRS can then process directly,

New procedures for handling information docu-ments, in place for the first time this year, willprovide tax examiners with the information fromIRP documents-at the time individual tax returnsare examined. This information should substan-tially increase the efficiency and effectiveness ofthe examination program. We have also, for thefirst time, revised our processing system to pro-vide early notices of nonfiling of tax returns inassociation with the IRP program.

While the information returns program is effec-tive for identifying substantial numbers of appar-ent underreporters and nonfilers, it is impossiblebecause of resource constraints to pursue everylead. Therefore, selections must be made ofthose leads most likely to be productive, just aswe select for audit those returns that appear tobe most in need of audit. We have undertakenseveral research efforts designed to improve ourselection systems, which we hope will furtherimprove the productivity of this very importantprogram.

In last year's annual report I commented on thestudy the Service had published on "Estimatesof Income Unreported on Individual Income TaxReturns." That report estimated that between$75 and $100 billion of income from legalsources was not reported for tax year 1976.During that year $1.1 trillion of income was re-ported, This unreported income is a concern tothe Service and should be a concern to all tax-payers. The failure of some taxpayers to paytheir required share of taxes increases the bur-den on honest taxpayers. High compliance isessential to a fair tax system - to avoid overtax-ing the honest.

While examination and document matching areeffective programs they cannot equal the level ofcompliance achieved when income is subject towithholding unless extended beyond levels thatare economically feasible and socially accept-able. The goal of tax administration should be to

have high compliance with little intrusiveness.Broadened withholding of tax at the sourcewould make a substantial contribution towardreaching that goal.

It is therefore disappointing that Congress e-jected the Administration's proposal to withholdtaxes from certain dividend and interes pay-merits, and has not yet acted on a pro;losal towithhold taxes on payments made by busi-nesses to certain independent contractorsthose most like employees.

Evenhanded administration of the tax laws obvi-ously requires not only the fair allocation ofcompliance resources but the uniform applica-tion of the tax laws. Our regulations, revenuerulings, letter rulings and technical advice arethe means by which we inform the taxpayingpublic and our own personnel of the Service'sposition on the many interpretive problems thatarise in applying the tax laws in our complex so-ciety. They are the means by which we seek toinsure the uniform application of the laws so thattaxpayers with similar transactions are treatedsimilarly.

In recent years Congress has prohibited the Ser-.vice from issuing such interpretations concern-ing the taxation of fringe benefits, determina-tions concerning racial discrimination in tax-ex-empt schools, the taxation of commuting ex-penses and section 280A relating to relatives'use of rental property, office in the home and re-pairs of rental property as personal use. In eachof these instances, while the Service is prohibit-ed from issuing regulations and rulings the un-derlying law was not changed and, therefore,the interpretive problems have not disappeared.Our personnel use their best judgment in inter-preting the law but inevitably in some casesthese judgments will vary. The result is that dif-ferent taxpayers are treated differently and theService is prohibited from resolving these incon-sistencies,

A particularly dramatic illustration of this prob-lem is the situation involving private schools. Asa result of a class action involving Mississippischools the Service was ordered by a federaldistrict court to apply rules to determine whethercertain private schools discriminate racially andare therefore ineligible for tax exemption. Thecourt-ordered rules are very similar to rules theService is specifically prohibited by Congressfrom applying in the rest of the country. Suchcongressional actions do nothing to enhance re-spect for the tax system or for government. Al-most any clear substantive rule that can be ap-plied uniformly is better than the present situa-tion.

Our tax laws are complex - more complex thanthey need to be although real simplicity is im-possible. Simple rules cannot be devised tocompute fairly the tax liabilities of multinationalcorporations, syndicated partnerships or gener-ation-skipping trusts. Complex transactions fre-quently require complex rules.

But many of the complex provisions of our taxlaws are unnecessary to the administration of anincome tax, that is, not necessary to the appro-priate measurement of a taxpayer's ability to paytax. Rather they are essentially expenditure pro-grams administered through the tax laws. Thereare close to 100 of I hese provisions listed in thecurrent budget and together, I think it is fair tosay, they are responsible for most of the com,plexity facing the average taxpayer.

Apart from the merits of the goals sought to t>eachieved by these provisions and apart from thestructure of the particular program, i.e., how itsbenefits are distributed and the criteria for quail-tying, there is a substantial price that is paid inusing the tax system for purposes other thanmeasuring income. That price is complexity.While no single tax expenditure can be said tooverburden the tax system, in total they do, Toolittle attention is paid to the damage to the taxsystem - to the average taxpayer's feelingabout the fairness of the tax system - in enact-ing these provisions. Taxpayers cannot be ex-pected to believe that a tax system is fair if theycannot understand it and our tax laws are unun-

erstandable to too many people required tocomply.

Moreover, there is a tendency to overrefinementof many provisions of the law in the name offairness. I would like to repeat what I said in re-marks earlier this year to the Inter-AmericanCenter for Tax Administrators.

-In a desire to differentiate carefully among

taxpayers with slightly different abilities to pay,we may inadvertently, and with the best of in-tentions, reduce the perceived fairness of thesystem, and even its actual fairness, it thenuances of the system become too complexand subtle to be managed by the average tax-payer. This situation seems particularly appar-ent in the case of certain deductions. It seemsentirely reasonable to put great weight on sim-plicily rather than perfect fairness where thedifferences to be achieved are usually small,are not limited to a particular economic classof taxpayers, and are not subject to significantabuse."

While we wish for simplicity we must administercomplexity.

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Resources for taxpayer service activities mustcompete with those for compliance functionsand for the processing of returns. Compliancefunctions produce a direct yield to the Treasurymany times their cost. There is, therefore, somepressure, particularly in the face of the tightbudgets we have experienced over the past fouryears, to direct resources to those functions. Ifirmly believe, although cannot prove, that vol-untary compliance is better when taxpayers aretreated fairly. We cannot measure the contribu-tion towards voluntary compliance of enforce-ment or service functions. In enforcement wecan measure direct yields but not improved vol-untary compliance, which I believe is muchmore important than direct yield. And service totaxpayers has no direct measurable yield.

But fairness requires that the government helptaxpayers comply with the burdens it has im-posed and we have emphasized and improvedour service operations over these past years.

We were able to make major revisions of theforms in 1977 largely as a result of the Tax Re-duction and Simplification Act of 1977. As a re-sult of those changes and efforts to expand useof the simple Form 1040A by those taxpayerswho can use it, the number of 1040A filers in-creased by 8.7 million taxpayers from 1977 to1980 while the number of long form filers de-creased from 56.5 to 55.3 million.

The 37.6 million taxpayers who now use theForm 1040A face little of the complexities of theInternal Reomue Code. Real simplification ofthe system is achieved each time a taxpayeruses the 1040A rather than the 1040. To pro-vide further assistance to taxpayers, our instruc-

tions have been thoroughly revised and simpli-fied.

The number of telephone calls answered, theaccuracy of the answers and the number of tax-payers serviced at our offices have all in-creased. This past fiscal year we answered 35million telephone calls and served 8 million tax-payers at our offices.

We have a substantial effort underway to im-prove the understandability of the various no-tices we send to taxpayers, many of which areindeed bewildering. I hope we can make themless so.

There is probably nothing more frustrating totaxpayers than the difficulty sometimes encoun-tered in trying to get the Service to correct amistake that it has made. Mistakes are not limit-ed to the IRS. They are inevitable and the diffi-culty of correcting them seems to be a functionof the size of the organization making them.

To help taxpayers who have been unable to geterrors corrected in the normal course of dealingwith the Service, an experimental problem reso-lution program was undertaken in 1976. Wehave now expanded this operation to every dis-trict office and service center. Each such officenow has a special staff charged with the respon-sibility of straightening out persistent problems.The problem resolution officers have the knowl-edge to cut through red tape and solve suchproblems on a personal basis. There is follow-through on each problem handled to make sureit is properly resolved. Last year over 200,000problems were handled in this program with avery high degree of satisfaction among taxpayers

This year, to give added emphasis to this pro-gram, to increase its importance and expand itsresponsibility, I created a Taxpayer Ombudsmanin the National Office who supervises all prob-lem resolution functions and who representstaxpayers' interests generally. The Ombudsmanreports directly to the Deputy Commissioner andthe Commissioner.

Fairness to taxpayers also requires that theyhave a ready means to resolve technical or legaldisputes with the Service. During 1978 we reor-ganized our administrative appeals system. Priorto the change taxpayers could take their dis-putes to a district conterence and then to theAppellate Division. District conferees had onlylimited settlement authonty and were under thejurisdiction of the district office that had madethe determination being contested. The Appel-late Division was independent of the district officeand had full settlement authority but appellateconferences were not held in as many locationsas district conferences and were therefore lessconvenient for many taxpayers. .Under the reorganization district conferenceswere eliminated and the Appellate Division wasexpanded. Now taxpayers have a single hearingwith an appeals officer who has full settlementauthority, is independent of the district officeand is available at every location where districtconferences were formerly held. This reorgani-zation has resulted in more prompt and conven-ient resolution of disputes.

Finally, I believe that a basic principle underlyinga fair tax administration system is that individualsare entitled to a high degree of privacy protec-tion in their tax returns and in the records theymust maintain to meet their tax obligations. Weshould not put these taxpayers in the dilemma Ofcomplying with the tax laws at the risk of prose-culion for nontax criminal violations. The Inter-nal Revenue Service's primary task is to collecttaxes under a voluntary compliance system. notto enforce the Nation's nontax criminal laws,collect nontax debts or gather statistics for non-tax purposes. Tax returns and tax administrationshould be used for tax purposes. We will pay aheavy cost it we use the resources of the taxsystem in an attempt to achieve nontax ob)00-lives.

I leave the next Commissioner a professionaland nonpolitical organization of public servantsdedicated to doing a difficult job fairly, I am hon-ored to have served.

Kurtzsioner of Internal Revenue

7

8 Collecting the Revenue 0

Returns Received

The Internal Revenue Service received 143.4million tax returns and supplemental documentsduring 1980, for a 2.3 percent increase over the140.2 million received in 1979, Over 93.1 mil-lion, or 64.9 percent of all returns received, wereindividual tax return Forms 1040 and 1040A,while 90.8 million had been received in the pre-vious 12-month period. More than 37.6 millionindividual taxpayers- 40.4 percent of all

indi-

vidual filers - used the Form 1040A,comparedto over 361 million in 1979, a rise of 4.3 Per_

cent. The number of individual taxpayers filingForm 1040 increased 1.4 percent from 54.5 mil-lion to 55.3 million this year.

Number of Returns Filed,by Principal Type of Return(Figures in thousands. For detailssee Statistical Table 7.)

Type of Return 1979 1980

Grand Total "140,201 143,446

Income Tax, total -104,910 107,827

Individual R90.803 93,143

Declaration ofestimated tax 8,425 8,699

Fiduciary 1,804 1,877

Partnership 1,353 1390

Corporation -2,525 2,718

E111111111111,11 Tax 159 148

Gift Tax 202 216

Employment Tax 26,219 26,499

Exempt onwizallon 450 444

Employee Plans 1,214 792

Alcohol, Tobaccoand Firearms -1543 S47

Excise Tax -1,014 909

SupplementalDocuments* -5,490 6,064

RData revised from pre,ious an-1 report.;11.1.d. For- 104OX, 1120X. 2688. 4868, 7DD4. Timt.

20L"

M. 7005, 990AR, 4578. 6069, 990BIL, 1041Aand 2438.

Mathematical CorrectionAs a result of checking the mathematics on 88.9million individual returns, 2.9 million taxpayerswere found to have made mistakes that over-stated their tax liabilities by $591 million, an av-erage of $203 per return. On 3.6 million returnstaxpayers had understated their tax liability by$1.1 billion with an average of $315.

Error rates for Forms 1040 and 1040A roseslightly in 1980, with 6.3 percent of the 11040Asprocessed having mathematical errors com-pared to 5.5 percent for 1979. The error rate forForms 1040 was 7.5 percent in 1980, 7.3 per-cent in 1979. The error rate increase is mostlydue to math error notices being sent to taxpay-ers who qualified for the earned income creditbut did not claim it on their returns.

The IRS also chocked the amounts claimed forestimated tax payments and found that taxpay-ers underclaimed $618 ritillion and overclaimed$752 million.

Individual Income Tax ReturnsMathematically Verified(In thousands)

1979 1980

Number verifiedby computer 87,382 88,945

Number of retums onwhich mathematicalerrors were detected 6,003 6,468

Percent of returnswith mathematicalerrors 6.9 7.3

Returns with Increase:

Number 3,755 3,556

Amount 905.624 1,119,633

Average amount $241.16 $314.88

Returns with decrease:

Number 2,249 2,912

Amount 357,351 590,832

Average amount $158.92 $202.91

10

Net Internal Revenue Collections(In thousands of dollars)

Source

Grand total

Corporation income taxes

Individual income taxes

Employment taxes, total

Old-age, survivors, disabilityand hospital insurance

Railroad retirement

Unemployment insurance

Estate and gift taxes

Excise taxes

;iDoes not include interest paid on refunds. In the narra-nve, in total refund figure of $54.0 billion includes $504,,Ilion !snarest.

Tax Receipts

Gross tax receipts in 1980 rose to $519.4 billion-halt trillion dollarpassing the one mark for the

first time. Total receipts showed an increase of$59 billion -- 12.8 percent - over 1979.

Income taxes accounted for over two-thirds ofall tax receipts. Individual income taxes of$287.5 billion reflected an increase of $36 bil-lion, or 14.3 percent over the prior year. Corpo-ration incorne tax receipts were $72.4 billion, foran increase of $932 million or 1.3 percent.

Social security, self-employment, federal unem-ployment and railroad retirement taxes totaled$128.3 billion, up $15.5 billion, or 13.7 percent,from 1979. 'rhis rise reflects an increase in thesocial security tax rate from 12.1 to 12.26 per-cent on Jan. 1, 1979, and an increase in theearnings base from $17,700 in 1978 to $22,900in 1979 and to $25,900 in 1980.

Not CollectionsGross Percent

Collections Refunds I Amount at Total

S19,375,273 53,1504,011 4615,8711,222 100.0

72,379,610 7.779,937 64,599,673 13.9

287,547,782 -44,753,862 242,793,920 52.1

128,330,480 571,486 127,758,994 27.4

122.486,499 507,290 121,979,209 26.2

2,534,981 1,218 2,533,763 0.5

3,309,000 62,978 3,246,022 0.7

6,498.381 108,901 6,389,480 1.4

24.619,021 289,865 24,329,156 5.2

- Refunds of Forms 1 D40 and 1 D40A minus FICA, but in-cluding employment tax.

Excise tax revenue rose to $24.6 billion, up $5.6

.billion, or 29.2 percent, over last year. The sharpincrease was due primarily to receipts from thenew windfall profit tax.

Estate and gift taxes increased by $1 billion17.7 percent - to $6.5 billion.

Refunds

The IRS paid $54 billion in total refunds to 75million taxpayers including 4.5 million checks to-taling $1.3 billion for taxpayers who claimed theearned income credit. In 1979, 69 million re-funds totaling $41.7 billion were paid, This yearrefunds to 72.3 million filers of Forms 1040 and1040A were S44.4 billion, including interest, av-eraging $614 compared to an average $518paid to 67.3 million individual taxpayers in 1979.Refunds of $8.1 billion were made to 560,000corporate taxpayers, while refunds of employ-menl, excise, estate and gift, railroad retirementand FUTA taxes totaled $1.5 billion.

11

Gross Internal Revenue Collections(in thousands of dollars. For details see Statistical Table 1)

Source

Percentof 1990

Collections

Increase or Decrease

1979 1990 Amount Percent

Grand total 1 100.0 460,412,185 519,375,273

Income taxes, total 69.3 322,993,733 359,927,392

Corporation 13.9 71,447.876 72,379,610 931,734

58,963,088 12.8

36,933,659 11.4

Individual, total 55.4 3251,545.857 1287,547.782

Withheld byemployers2 43.1 3195,331,016 4223,801,608

Other' 12.3

15,480,606Employment taxes, total 24.7 112,849,874 128,330,480

Old-age, survivors,disability and hospitalinsurance, total 23.6 107.525,982 122,486,499Federal ins rancecontributions 22.5 102,492,463 116,763,618

Self-employmentinsurance contributions 1.1

Unemployment insurance 0.6

Railroad retirement 0.5

Estate and gift taxes 1.3

Excise taxes, total 4.7

Alcohol 1.1

Tobacco 0.5

Other 3.2I Collections am adjusted to ...lud. .-rits tram,fernad to the Government of Guam2 Estimated collections of Individual income tax vvithheldare not reported separately from .1dag.. survivors, dis-ability and hospital insurance (OASDHI) taxes on

wagesand salaries. similarly, collections of individual incometax not withheld am combined with OASDHI tax. onsell-erriployment income. The amount of 0ASDHIsa.collections ilth- is based on estimates made by thesecretary of the Treasury pursuant to the provisions of

36,001,925 14.3,

28.470.592 14.6

56,214.840 63,746,174 7,531,334 13.4

1.3

13.7

14,960,517 13.9

14,271,155 13.9

5,033,519 5,722,881 689,362 13.7

2,958,000 3,309,000 351,000 11.9

2,365,893 2,534,981 169,088 7.15,519,074 6A98,381 979,307 17.7

19,049,1504 24,619,021 5,1569,517 29.2

5,647,924 5,704,768 56,844 1.0

2,495,517 2."6,416 -49,101 -2.0

10,906,063 16,467,837 5,561,774 51.0sec. 201 (a) Of the social Security Act as amended, andincludes all OASDHI taxft. The estimates shown for thetwo categories of individual Incorne taxes were derivedby subtracting the OASDHI tax estimates borri the corn-bined totals reported.I Includes presidential Election Campaign Fund amount-Ing to $35,933,816.- Includes presidential Election Campaign Fund amount.Ing to $38.831.653.

12

Flow of Returns Filed and Refunds IssuedIndividual Income Tax *(Cumulative number in thousands)

1979 Jan Fab Mar Apr May June

Returns Filed

Number 9,758 35,842 53,259 86,431 87,951 89,232

Percent 10.9 40.2 59~7 96.9 98.6 100

1,399 13,139 34,074 53,914 62,761 64,307

53.0 83.8 97.6 100

Refunds Issued

Number

Percent

Returns Filed

2.2 20.4

Number 9,731 38,250 55.827 88,769 89,981 91,432

Percent 10.6

Refunds Issued

41.8 61.1 97.1 98.4 , 100

Number 986 13,190 35,439 56,408 67,353 69,028

Percent 1.4 19.1 51.3 81.7 97.6 100

- Returns processed by National C-put., center and

refunds scheduled for issuance by Rg,.nal Disbursing

Centers Include only Forno I D40 and 1040A.

The Tax Dollar --Where it Came From

Gross Collections (Net Collections)

inEwsEEFEEEin

___F_ ____1

Id

Employment 24.7 (27.4)

Corporation 13.9 (13.9)

Excise 4.7 (5.2)Estate & Gift 1.3 (1.4)

Individual 55.4 (52.1)

Penalties

Under law the IRS levies penalties such as thosefor failure to pay, paying with bad checks, filinglate or committing negligence and fraud. In1980 the IRS assessed 20 million penalties for atotal of $2.1 billion. For details see Statistical Ta-ble 14.

Tax Credits

This year $775 million in child-care creditsavailable to working parents meeting certain re-quirements, were claimed on 3.7 million returns.Earned income credit (EIC) of $2 billion wasclaimed by 7.1 million low-income taxpayerswho maintain a home for themselves and atleast one dependent. The Revenue Act of 1978provided for advance payment of EIC in employ-ee paychecks to give employees the option ofreceiving the credit amount each payday ratherthan waiting until the end of the tax year to getrefunds from filing of individual income tax re-turns. Since the program began on July 1, 1979,

13

$26.1 million of advance EIC has been paid outby employers and reported on 39,300 employ-merit tax returns.

Employers claimed $582 million on 286,000 re-turns for the targeted-jobs credit in 1980. Thiscredit replaced the new-jobs credit and is de-signed to encourage employment of specificgroups.

This year taxpayers claimed $478 million incredits on 4.8 million returns for energy conser-vation and renewable energy source expendi-tures made on their residences. This credit wasprovided by the Energy Tax Act of 1978.

Another tax credit of the Energy Tax Act of 1978is the business energy investment tax credit(BEITC). The BEITC is refundable and can resultin a refund in excess of tax liability based uponinvestments in solar and wind energy propertyplaced in service between Sept. 30, 1978, andDec. 31, 1979. This year taxpayers were al-low~d $3.5 million to satisfy their current-yeartax

iability and $2.3 million in excess of their

current-year tax liability.

Presidential Election Campaign Fund

This year 25.3 million individual income tax re-turns had designations for the Presidential Elec-lion Campaign Fund - 27.4 percent of the re-turns processed, Designations amounted to$38.8 million compared to $35.9 million desig-nated in 1979 on 23.2 million individual tax re-turns, or 25.8 percent of those processed. Thecumulative amount credited to the fund since1972 is $246.2 million.

Combined Annual Wage Reporting

Combined annual wage reporting (CAWR) is asystem developed to reduce the reponing bur-den for employers while still satisfying the re-porling requirements of both the IRS and the So-cial Security Administration (SSA). This report-ing system became effective with all wages paidafter Dec. 31, 1977, for domestic employers andafter Dec. 31 ,

1978, lor employers in U.S. Pos-

sessions and Puerto Rico. Under CAWR, Sched-ule A, which required a detailed listing of em-ployee information, is no longer filed with em-ployment tax Forms 941, 942 or 943, and the

14

ProcessingPipeline

R turns are delivered to theRZional Service Centers.

Tax returns and accompanyingchecks ans compared.

Envelopes are opened andcounted.

Returns are sorted by type ofreturn.

Returns are edited and coded for Tax return information is placed oncomputer processing. magnetic tape for computer

processing.

IRS computers check returns for Tapes are sent to the Nationalmathematical accuracy. Computer Center for Account

Posting and Settlement.

Tapes of Refunds are sent to theTreasury Department DisbursingCenter for issuance of checksdirectly to taxpayers.

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

Form W-2 was redesigned to include the FederalInsurance Contributions Act (FICA) informationformerly filed on Schedule A. The Forms W-2are filed with the SSA, which processes the in-formation and supplies it to the IRS.

During 1980 the IRS began a reconciliation be-tween the employment tax returns such asForms 941 and 942 and the wage returns suchas Forms W-2 filed by employers for calendaryear 1978 to insure that the correct tax hasbeen paid over to the government and that am-Ployees receive the correct FICA coverage withSSA.

Windfall Profit Tax

The Crude Oil Windfall Profit Tax Act of 1980imposed an excise tax on crude oil and certainnatural gas liquids produced from domestic oiland gas wells after March 1, 1980.Afthough the windfall profit tax is imposed uponthe producer the law provides that the first pur-chaser of domestic crude oil generally is liablefor deducting and withholding tax from the pur-chase price, depositing the tax and filing quar-terly tax returns. This tax affects almost everytaxpayer who owns any kind of an interest in anoil or gas well, including royalty owners, workinginterest owners and operators, as well as multi-national oil companies.

Temporary regulations, dealing primarily withthe administrative provisions of the law, wereavailable the day of its enactment. Revenue rul-ings will be published, as necessary, to provideclarification and one revenue ruling already hasbeen issued involving the severance tax adjust-ment.

The amount reported for the windfall profit tax in1980 was $3.1 billion and the first windfall taxexaminations were begun in the fall of 1980.

A multifunctional IRS task force has beenformed to identify problems and recommend so-lutions for the implementation of what is project-ed to be a 1 0-year program to collect $227 bil-lion enforcing this tax.

is

is Assisting the Taxpayer 17

Write, Call or Walk InThis year the IRS received about 102,000 writ-ten, 35 million telephone and 8 million walk-ininquiries from taxpayers requesting informationabout the tax system, their rights and obligationsunder it and the tax benefits available. In 1979the IRS responded to 96,000 written, 33 milliontelephone and 8 million walk-in inquiries.

More than 59 percent of this year's 43.1 millioninquiries, 25.6 million requests for assistance,occurred between January 1 and April 25

-over 20 million phone calls, more than 5 millionwalk-in inquiries and over 36,000 items of corre-spondence. A quality check of 243,000 tele-phone responses and returns prepared by

IRSassisters during this same period found an over-all accuracy rate of over 97 percent.

Toll-Free Telephone Assistance

Over 97 percent - 19.8 million - of the tele-phone calls received during the 1980 tax returnfiling period were made through the toll-free

telephone system that allows taxpayers fromthroughout the United States to call IRS for in-formation without paying long-distance charges.In 1979 18.7 million of the telephone calls weremade t~rough the toll-free system.

Over 80 percent of these telephone calls are an-swered by froni-line assisters. Referrals requir-ing computer research or more advanced tech-nical assistance are resolved by IRS employeeswho have received specialized training in theseareas. This year the IRS answered over 3.7 mil-lion account referrals, including inquiries on re-funds, notices received and tax payments. In ad-dition, employees answered about 2.8 milliontechnical referrals, responding to questions oncorporation tax law, estate taxes, employmenttaxes and a wide variety of other complex inqui-ries.

Teletypewriter equipment with a nationwide toll-free number giving hearing-impaired taxpayersaccess to telephone assistance was extended toAdaska, Hawaii, Puerto Rico and the VirginIslands in 1980.

iu

Walk-in Service

Walk-in taxpayer assistance was offered atinner-city, business district, suburban and rurallocations with 702 permanent offices and 142temporary offices set up especially for the filingperiod. In addition, over 37,000 banks and Post-a] Service locations helped distribute more than290 million tax forms and instructions.

The IRS provided foreign language assistance at204 of its 844 taxpayer service offices. Spanishlanguage assistance was offered at 154 of theseoffices by 600 employees, while 108 offices and431 employees assisted in other languages.

Disaster Assistance

In 1980 the IRS provided help in preparingamended returns and casualty loss claims andin getting refunds taster to taxpayers in 23 statesand 138 counties affected by floods, hurricanes,tornadoes and the eruption of Mount St. Helens.

Educating Taxpayers

The Understanding Taxes and Fundamentals ofTax Preparation programs reached more than 5million high school and college students lastyear. IRS-sponsored workshops for nearly43,000 small business owners helped make tax-payers aware of their tax rights and responsibili-ties. In addition, 538 institutes were held for taxpractitioners.

Through the volunteer income tax assistanceprogram (VITA) the IRS recruits, trains and sup-ports volunteers who prepare tax returns forlow-income, nonEnglish-speaking and militarytaxpayers. This year more than 355,000 federalincome tax returns were prepared by almost55,000 volunteers, In 1980, as a result of a newprogram of tax counseling for the elderly, theIRS entered into agreements with nonprofit or-ganizations to provide free tax help to individualsage 60 and over, with volunteers reimbursed forout-of-pocket expenses.

Forms and Publications

The IRS contracted with an outside firm Iasi yearto revise and test the individual lax forms. Proto-type forms have been developed and limitedtests were conducled at various siles around thecountry. After the results of these tests are ana-lyzed, large-scale testing with revised forms willbegin early in 1981.

Public hearings held in Atlanta, Omaha, Seattleand Burlington resulted in many suggestions onhow to simplify the federal tax return forms andinstructions and after studying the suggestionsthe IRS has adopted a number of them. In addi-tion, volunteers in San Francisco, Des Moinesand Jacksonville tested the Form 1040 individu-al 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 be-ing used to identity parts of the tax forms in-structions that can be made easier to read.

The IRS distributed many taxpayer informationpublications free of charge including 2.8 millioncopies of Your Federal Income Tax, 1A millioncopies of the Tax Guide for Small Business,805.000-copies of the Farmer's Tax Guide and71,500 copies of the Tax Guide for CommercialFishermen. Additional tax materials were fur-nished to 7.1 million taxpayers, 580,000 taxpractitioners and 436,500 employers. The IRSpublishes more than 90 booklets- three inSpanish- on specific tax topics.

19

J 1~~ Vill'.Informing Taxpayers

Major television and radio networks and localbroadcasters provided free airtime having an es-timated worth of $5.5 million for this year's pub-lic service spot announcements giving taxpayersinformation on provisions of the tax law andguidance on filing tax returns properly.

A new film, "A Right Good Thing" was pro-duced to familiarize older Americans with taxcounseling for the elderly and other available as-sistance in preparing income tax returns.

Specialized media receiving IRS information thisyear included newspapers and magazines readby farmers and fishermen, working parents, old-er Americans, barbers, beauticians and serviceemployees of hotels and restaurants, The infor-mation covered special tax responsibilities andbenefits of particular interest to these taxpayergroups.

The IRS issued more than 7,000 news releasesand responded to nearly 20,000 media inquiriesthrough the National Office and 75 field ioca-tions.

PE

I

Claritying Notices

In response to concern about the clarity of IRScomputer-generated correspondence, a specialefforl began in July 1980 to review, revise andreformat all such notices. The goal of thisproject is to make it easier for taxpayers to un-derstand why they have received notices andwhat action, it any, they need to take in re-sponse. The IRS plans to begin using revisednotices in January 1981. Taxpayer reaction tothe notices will be tested and feedback receivedwill be used in considering future notice revisions.

Making Information Available

During calendar year 1979 the IRS processed9,249 requests for IRS documents made underthe Freedcm of Information Act - an increaseof 22 percent over 19.78. Of this total, 5,716were granted in full, 1,097 were granted in partand 2,436 were either incomplete requests orrequests denied in full. The National Office read-ing room serviced aproximately 31,000 addition-al requests for documents available to the publ-ic, including returns of exempt organizations,pension plans and private letter rulings - a 17percent increase over the prior year.

Under the Privacy Act of 1974, individuals made371 requests for access to records about them-selves and 20 requests to amend or correctthese records. The IRS permitted full access in185 of these requests and granted partial acc-ess in 82. The remaining 124 were either incom-plete or denied in full.

Approximately 8,000 disclosures of tax informa-tion were made to the Department of Justice;188,000 to federal, state and local child supportenforcement agencies and 71 million to slate taxagencies under specific disclosure provisions inthe Internal Revenue Code.

Effective June 1, 1980, authority for disclosureof tax returns and return information to federalagencies for use in nontax criminal investiga-tions was delegated to field offices to improvethe timeliness of disclosure services.

The IRS has agreements with 94 state tax agen-cies for reciprocal exchange of confidential in-formation. This federal-state exchange programincreases tax revenues, reduces duplicate ex-aminations and increases taxpayer compliancefor both state tax agencies and the IRS. Thisyear the IRS approved implementation agree-ments with 63 state tax agencies lo,identifymore precisely the information to be exchangedand limit disclosures to information that is need-ed and used.

The IRS and the California Franchise Tax Boardthis year developed procedures that will elimi-nate duplicate paper processing of informationreturns filed. Each agency will transcribe a sepa-rate group of documents and exchange magnet-ic tape extracts. This cooperative effort will re-sult in almost 100 percent transcription of intor-mation returns filed by California residents ioruse in document matching, The IRS is continual-ly exploring methods of exchanging informationby magnetic tape to improve utilization of stateand federal tax administration resources.

Helping Other Countries

In 1963 the IRS, in cooperati6n with the Agencyfor International Development (AID), initiated aprogram to assist foreign governments in mod-ernizing their tax administration systems. Duringthe past 17 years IRS advisers have been as-signed to thirty-eight countries, the CaribbeanCommunity and the Central American Secretari-at for Economic Integration for periods from twoweeks to several years.

In 1980 the IRS provided long-term assistanceto Egypt, Liberia and Sierra Leone, whileprojects were completed in El Salvador, theNorthern Mariana Islands and the Trust Territo-ries of the Pacific Islands. Short-term projectswere conducted in Jordan and Trinidad and To-bago,

This year 405 officials from 74 countries visitedthe IRS for orientation and observation

pro-grams. Since 1963 over 5,750 visitorsfrom

134countries have participated in these programs,The IRS also presented a seven-week INTAXseminar in tax administration for tax officialsfrom six countries and provided a guest speakerat a seminar on computer-assisted audits spon-sored by the Brazilian Ministry of Financeschool.

Problem Resolution

The problem resolution program (PRP) was es-tablished nationwide in 1977 to bring special at-tention to persistent taxpayer problems andcomplaints not promptly or properly resolved

21

through normal procedures. In October 1979the program was expanded to include all ten IRSservice centers.

Late in 1979 the IRS established a TixpayerOmbudsman in the Office of the Commissionerto administer the nationwide problem resolutionprogram, represent taxpayer interests and con-cerns within the IRS decision-making process,review IRS policies and procedures for possibleadverse effects on taxpayers, propose ideas ontax administration that will benefit taxpayers andrepresent taxpayer views in the design of laxforms and instructions.

The Taxpayer Ombudsman is not intended as asubstitute for existing appeals procedures, nor isit meant to be another level of appeals for decid-ing substantive tax disputes, although advice onappeal rights is provided to taxpayers and com-plaints about appeals procedures are heard andacted upon by PRP offices.

This year 208,000 individual taxpayer problemswere resolved through PRP. If a case cannot beresolved within five workdays the taxpayer iscontacted, advised of the status of the case andprovided the name and telephone number of theemployee responsible for resolution. PRP alsoanalyzes the underlying causes of taxpayerproblems so that organizational, procedural orsystemic problems can be identified and cor-rected.

22 14th CIATGeneralAssembly

Commissioner of Internal Revenue JeromeKurtz was elected President of the~nter-American Center of Tax AdministratorsCIAT) during its 14th General Assembly held

in Washington, D. C., June 22-27, 1980. Thiswas the first time a CIAT General Assemblyhad been held in the United States. CIAT wasfounded in 1967 to provide a forum for theexchange of information experience andtechnical assistance in tax administration inthe Western Hemisphere.

Deputy Secretary of the Treasury RobertCarswell welcomed the more than 200delegates, observers and special guests atthe opening ceremony ~Conrmissioner Kurtzfollowed with the theme address,

_!Z:--- ____ ii,

"Fundamental Tax Audit Considerations," andduring the week technical papers werepresented on various aspects of an auditprogram. Deputy Commissioner William E.Williams discussed unreported income andU.S. tax administration and AssistantCommissioner Joseph T Davis spoke onresources support.

Deputy Secretary and Mrs. Carswell hosted areception for delegates, observers and invitedguests at the Hall of the Americas in theOrganization of American States buildingduring the week-long event.

On the final day Commissioner and Mrs. Kurtzhosted a dinner for the delegates at thehistoric Gunston Hall Plantation at Lorton, Va.

23

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 AlternateC.unc" G"ill,ma. Prieto Forum, Mexico, Third Councilor: Commission., Kuri

P,eaidX:~ Fernando Revere Alvarez. Dominican Republic, Fourth Councilor; Alfixparst,He

iti, Second Alternate Councilor, and Ricardo Cossio, Argentina, FifthCouncilor.

24 Enforcing the Law 25

ExaminationsDuring 1980 the IRS initiated a new method togroup individual returns for examination selec-tion purposes. Classes, which are groupings ofreturns by income levels, are used for scoringreturns in the discriminant function system (DIF)- a computer method used to select individualreturns for examination using mathematical for-mulas to measure the probability of error-planning workload and staffing and monitoringresults of examinations. Total positive income(TPI)- the sum of all positive income valuesappearing on a return, with losses treated aszero- now is being used to class nonbusinessreturns and total gross receipts (TGR) to groupbusiness returns. TPI replaces the previouslyused adjusted gross income (AGI) method ofclassifying returns.

Examination and Correction Results

The IRS examined 2,179,297 returns in 1980'of

which 1,984,224 returns were examined in dis-trict offices or at the taxpayer's residence

orplace of business by tax auditors and revenueagents- a decrease of 89,472 returns from1979, The remaining 195,073 returns were

ex_

amined in service centers, a decrease of 4,834from 1979.Revenue agents examined 615,671 returns attaxpayer residences or places of business-down 63,631 returns or 9 percent from last year.Tax auditors examined 1,368,553 returns usingoffice audit procedures, down 25,841 returns or2 percent from the previous year.Examination coverage of income, estate and gifttax returns was 2.12 percent compared to 2.24percent in 1979.The IRS examination program resulted in recom-mendations for additional tax and penalties of$9.4 billion - the largest amount ever - com-pared to $7.1 billion in 1979. Of this total, indi-vidual returns accounted for $2 billion, corpo-rate returns for $6 billion, fiduciary returns for$33.9 million, estate and gift tax returns for $1.1billion and employment and excise returns for$172 million.The examination program also disclosed overas-sessments on 130,132 returns resulting

in re-

funds of $376 million, compared to 133,059 re-turns with refunds of $328 million in 1979.In addition to the district office examination Pro-gram, service centers also resolve or verity is-

sues that can be handled through correspon-dence with the taxpayer. During the year533,046 returns were verified or correctedthrough correspondence by the service centers,including 351,029 resulting from the matchingof information return documents. This total fig-ure is up 36,612 returns, or 7 percent, over1979, Recommended additional tax and penal-ties totaled $123 million, compared to $119.2million in 1979.

Statistical Tables 8 and 9 show exarnination ac-tivity for 1980 and 1979.

Large Corporations

The coordinated examination program (CEP),which covered financial institutions and utilitieswhose gross assets exceed $1 billion and othercorporations whose gross assets exceed $250million, was restructured in 1980 to a two-tieredprogram and new case identification criteriawere implemented. The two-tiered program in-volves a national CEP and a newly establishedregional CEP, with the most complicated casesassigned to the national program. The new,more sophisticated identification criteria consid-er factors such as asset size, multiple entities,multiple industries, complexities requiring spe-cialists, gross receipts and application of re-sources.

At the endof

1980 there were 937 cases in thenational CEP and 567 cases in the regional CEPwith a combined average number of open yearsper case of 2.8 compared to a three-year objec-tive, Recommended tax deficiencies and penal-ties totaled $4.35 billion during 1980 comparedto $2.7 billion for 1979.

In 1980 the industry specialization program in-cluded 13 designated industries, encompassing483 of the national CEP cases.

In the computer-assisted -audit program the IRSuses the skills of 174 specialists trained in com-puter systems hardware, computer program lan-guages and examination techniques to reducethe cost of investigations, examinations andcompliance projects. Engineer agents handled1 2,459 requests for technical assistance -up10 percent over last year. IRS has 319 field en-gineers located in 26 groups in 17 key districts.

Revenue Agents and Tax Auditors (District Examination Divisions)

Returns Examinedby Type of Tax

Dollar Recommendations (Millions)by Type of Tax

Estate & Gift 1.9%

Corporations 6.7%

All other 8.3%

Individual &Fiduciary 83.1%

Estate & Gift 12.2%

Corporation 64.1%

All Other 2.7%

Individual &Fiduciary 21.0%

Tax Shelters

The tax shelter program was expanded and im-proved in 1980. At the end of the year 193,933returns with tax shelter issues were in the exami-nation process - an increase of 11,202 returnsover 1979.

A separate staff was established in January1980 in our Technical organization to acceleratethe publication of rulings and furnishing of tech-nical advice and assistance to IRS offices on taxshelter issues. During 1980 thirteen tax shelterrevenue rulings were issued and over 100 re-quests for technical advice and assistance fromthe Examination Division were processed.

New procedures were developed to identify abu-sive shelter cases - through information-gath-ering projects, utilization of information fromother agencies and greater use of "John Doe"summonses - and to expedite the appeals pro-cess.

With the addition of the commodities and realestate shelter segments this year, the tax shelterhandbook developed for examiners now in-cludes detailed examination techniques for sev-en of the most common shelters. Tax sheltertrai ning materials for examiners has been re-vised and updated and a separate course hasbeen developed on commodities.

W-4 Program

During 1980 IRS developed a program to reviewand follow up on questionable Forms W-4, Em-ployee's Withholding Allowance Certificate, tocheck abuses by taxpayers who file incorrectForms W-4 with employers to avoid withholdingof income tax from wages,

Amendments to the Employment Tax Regula-tions, issued March 11, 1980, require employersto submit certain Forms W-4 to service centers,starting with their employment tax returns due inJuly 1980. If the IRS determines a Form W-4 tobe incorrect the employee and employer will benotified that the Form W-4 is not acceptable.The employer then must withhold as it the em-ployee were single, claiming no withholding al-lowances, until the employer receives a newForm W-4 from the employee. Compliance withthe new regulations will be monitored by districtexamination divisions during income and em-ployment tax examinations.

Unreported Income

The IRS is attempting to identity, examine andinvestigate areas of high underreporling andnonreporting of income.

27

Beginning July 1980, a summary of informationreturns and currency transaction records filedfor 1979 is being associated with 1979 individu-al income tax returns for use in the selectionand examination of these returns.

Additional areas of potential noncompliancecontinue to be identified and tested to determinethe extent of noncompliance.

Ouallty ReviewTo assure impartial and uniform tax administra-tion in resolving issues and making quality ex-ami nations, new standards and guidelines havebeen developed for selecting, examining and re-viewing returns. A system is also being designedto measure and report the quality of completedaudits.

Appeals

Under the single level of appeal begun in calen-clar year 1978, and Revenue Procedure 78-9,the Appeals Division handled more cases than inprior years. Conferences were offered at alllocations where previously held under the two-level system, In cases docketed with the U.S.Tax Court, 60 percent of Appeals settlementsoccurred within four months and 88 percentwithin six months.

The number of cases received in Appeals con-tinued to increase, from 48,a45 cases last yearto 53,467 during the current year. Docketedcases - those involving taxpayers who havefiled petitions with the U.S. Tax Court - in-creased 7 percent and there was a 10 percentincre se in nondocketed work. Small cases con-tinue to be a large part of Appeals work withover 56 percent of receipts in 1980 involvingcases with deficiencies of less than $2,500,compared to 54 percent in 1979. Disposals alsoincreased from 46,535 cases in 1979 to 49,971in 1980.

The majority of cases handled in Appeals weresettled with the taxpayer without litigation. Innondocketed cases, 85 percent were closed byagreement, an increase from 82 percent, the re-vised agreement rate for 1979. In docketedcases, 61 percent were agreed in Appeals com-pared to 57 percent, as revised for 1979. Thecombined agreement rate for Appeals and dis-trict counsel including those cases dismissed bythe Tax Court, was 90 percent.

Ending inventory in Appeals increased from34,996 cases in 1979 to 36,047 at the end ofthis year. The potential tax liability representedby the cases in inventory increased from $7.2billion to $8.7 billion.

A taxpayer whose informal request for abate-ment of certain penalty assessments is deniedby service center or district office personnel mayalso request an Appeals conference. During1980 Appeals disposed of 8,338 penalty ap-peals compared to 7,200 in 1979. Of the $17.3million in penalties protested, $9,3 million wasabated as a result of appeals.

Criminal Investigation

A total of 7,114 investigations were initiated inthe general and special enforcement programsof the Criminal Investigation Division in 1980.The general enforcement program provides forbalanced criminal tax enforcement and geo-graphical and occupational coverage of thepopulation involving various types of alleged vio-lations of the tax laws. Other enforcement effortsin this program include the prosecution of indi-viduals who file multiple claims for tax refunds,illegally refuse to pay their taxes through varioustax protests and promote the use of fraudulenttax shelters.

In the special enforcement program, individualswho derive income from certain illegal activitiesand violate the tax laws are identified and inves-tigated. This program also includes projectssuch as the federal strike force program againstorganized crime, the high-level narcotics finan-ciers and traffickers project, wagering tax en-forcement and other efforts against racketeers,

Results of Criminal ActionIn Tax Fraud Cases

Action

Number ofDefendants

1979 1980

Plea of Guilty ornolo contenders 1,270 1,337

Convicted after trial 342 264

Acquitted 86 80

Nol-prossed or dismissed 183 193

Total Disposals 1,881 1,874

Indictments & Informations 1,820 1,832

Percentage of Jail Sentencesto Total Sentenced 44.5 46.5

Prosecutions were recommended in 2,267 in-vestigalions out of the 8,077 completed. Grandjuries indicted or U.S. Attorneys filed informa-tions on 1,832 taxpayers. Prosection was suc-cessfully completed in 1,601 cases.

Taxpayers entered guilty pleas in 1,244 cases,93 pleaded nolo contendere and 264 were con-,ActLd after trial. Acquittals and disrnssals to-taled 80 and 193, respectively. Of the 1,590 tax-payers sentenced during the year, 740, or 46.5percent, received jail sentences.

Out of these totals, the special enforcement pro-gram accounted for 1,302 completed investiga-tions, 455 prosection recommendations and 257convictions or pleas of guilty to tax charges.

Cooperation With Others

The Criminal Investigation Division participatesin the federal strike force program against orga-nized crime. Strike forces are located in 13 ma-jor cities and are coordinated by Department ofJustice attorneys. Investigations of high-levelnarcotics financiers and traffickers are coordi-nated with the Drug Enforcement Administra-tion.

The Division also provides training in the use offinancial investigative techniques against "whitecollar" crime to investigators for state crimecommissions

,U.S. probation officers, slate se

curities commissions, U.S. Air Force Office ofSpecial Investigations, state alcohol and bever-age control divisions, state police and other fed-eral, state and local law enforcement agencies.

Illegal Tax Protesters

The IRS established a comprehensive programin January 1979 to identify illegal tax protesterschemes and to take appropriate action throughexamination, criminal investigation and collec-tion programs to assure compliance with the taxlaws.

As of June 30, 1980, over 9,000 illegal tax pro-,ester returns were under examination. Duringff~

a first nine months of 1980, 135 indictments orinformations were returned on illegal tax protest-ers and 98 were convicted.

Collection

During 1980 the IRS disposed of 2.3 million de-linquent accounts. Some $6 billion in overduetaxes were collected. 01 that sum, $2 billionwere collected in response to computer noticessent to taxpayers and $4 billion were collectedon delinquent accounts. Approximately 1.4 mil-lion delinquent tax returns were secured, involv-ing $1.8 billion in additional assessments. .

Results of Direct Enforcement onDelinquent Accounts and Returns

1979 1980

Delinquent TaxesCollected -

From DelinquentAccounts $3.316.1 $3,995.9From Notices $1,584.1 $2,003.7

Delinquent ReturnsSecured2By Collection Division 1.324.2 1,362.4By Examination Division 5B.2 48.1

Additional Tax, Penaltyand Interest Asseon Delinquent Returns(Nelt of prepaid credits)By Collection Division $1,379.1 $1,753.4BY Examination Division $69.0 $55.6

millions -thi-nds

Returns compliance programs identified poten-tial nonfilers and resulted in securing 55,469 re-turns with $17.9 million in additional taxes as-sessed. Statistical Table 13 shows results lor1980.

Service Center CollectionA service center collection activity, which wasdeveloped and tested over several years, wasoperalional in all centers during 1980. This ac-tivity makes correspondence and telephonecontacts wilh taxpayers to resolve tax deli n-quencies and, under certain circumstances,makes arrangements with taxpayers to pay lia-bilities in installments, These service center col-lection actions are being evaluated for efficiencyand timeliness.

Nonfiler Identification

New procedures for early identification and con-tact of income tax nonfilers were established in1980 and case selection criteria were refined toimprove the quality of investigations and mini-mize contacts with persons not required to file.Identification of nonfilers of business returnswas improved through matching informationdocuments.

Workload Control

Tax delinquencies were analyzed during 1980 tofind ways to cope with the increasing collectionworkload. For example, certain delinquencieswere earmarked to receive additional noticesand the timing between notices was chanZ toincrease the possibility of collection before afield contact becomes necessary.

29

Returns ComplianceNew programs dealing with child care and agri-cultural labor were begun during 1980 afterstudies showed significant employment tax non-compliance in these areas.The child care program resulted in several thou-sand investigations for nontiling of Form 942,Employer's Quarterly Return for Household Em-ployees, by taxpayers who listed large amountsfor in-home child care on their income tax re-turns.The agricultural labor program also resulted inseveral thousand investigations for nonfiling ofForms 943, Employer's Annual Tax Return forAgricultural Employees, by taxpayers whoclaimed large amounts for hired labor on Sched-ule F, Farm Income and Expenses.

Bankruptcy

The Bankruptcy Reform Act of 1978, which be-came effective on Oct. 1, 1979, had a substan-tial impact on IRS collection operations. Thenew law requires special handling of tax returns.No tax may be assessed for periods ending be-fore the bankruptcy proceeding began, until anautomatic stay of assessment period has ex-pired. To prevent assessment, a new computerprogram was designed to block the normal pro.cessing of tax returns from taxpayers who havedeclared bankruptcy. This allows the IRS tomonitor the court proceeding and then assessthe tax when legally permissible.

Offers In CompromiseThe offer-in-compromise procedure, authorizedsince 1831 to compromise liabilities owed to theUnited States, is used to bring about maximumcollection in situations where collection or thecorrectness of a liability is in doubt. The Collec-tion Division processed 1,763 offers in compro-m se in 1980.

Child Support Obligations

The law requires the IRS to collect delinquentchild support payments on behalf of certainstate agencies. In the past IRS collection wasused for cases in which a court-ordered childsupport obligation was delinquent and assign-ment of support rights had been extended as acondition of eligibility of aid to families with de-pendent children (AFDC). This year a change inthe law extended the responsibility of the IRS tocollect child support for nonAFDC families.

KE

Information Returns Program

In 1980, 547 million information documentswere received. More than 358 million informa-tion returns were received by the IRS from busi-nesses and organizations reporting interest, divi-dends and other payments. Over 303 million ofthese were submitted on magnetic media. TheSocial Security Administration, which undercombined annual wage reporting receives andprocesses Forms W-2, received informationfrom over 189 million Forms W-2.

The IRS received over 100 million pre-1 974 Se-ries E savings bonds redeemed in 1980 from theBureau of Public Debt for inclusion in the infor-mation returns program. These bonds date backto 1941. Since 1973, U.S. government bond re-demptions have been reported to the IRS onmagnetic media,

The IRS will continue to match most informationreturns submitted on magnetic media to verifythat correct amounts are reported on taxpayers'

Information ReturnsReported on Magnetic Media

Tax Documents ReportingYear (thousands) Entities

1967 36,492 1,048

1968 47,686 2,426

1969 58.951 2,963

1970 68,300 4,637

1971 91,449 8,504

1972 115,008 12,758

1973 144,533 13,128

1974- 185,554 21,862

1975- 216,839 32,486

1976* 248.106 35,013

1977* 275,423 39,980

1978- "269,936 38,417

1979* 303,339 43,840 .

:Dot revised from previous annual report.Cal:hdar year data. Dam for 1973 and before covers

the 6 month period January through June,Note: For 1978 and subsequent years the volumesshown do cot include Form W-2 and W-2P Processedby the Social Secumy Administration under the con,pired annual wage reporting system,

returns. Also, of the information returns submit-ted this year on paper, approximately 25 percentwill be matched compared to 20 percent lastyear.

A new form, 1099 NEC, was provided this yearfor persons in a trade or business to report fees,commissions or other compensation totalingmore than $600 for the year paid to anyone whois not an employee.

In 1980 the IRS notified over 2.1 million taxpay-ers of potential discrepancies between incomereported on their tax returns and income report-ed on information returns. Also, 1.4 million tax-payers were sent notices of apparent failure tofile tax returns based on information returns.

This year the IRS began using information re-turns in selecting income tax returns for exami-nation and for use in connection with actual ex-aminations, Next year informalion'documentsalso will be used to locate and contact taxpayerswho filed income tax returns in previous yearsbut failed to do so for the current year,

International Operations

To conduct the business of the IRS outside theterritorial boundaries of the United States, theOffice of International Operations (010) has for-eign posts in key cities around the world. Be-cause of the steady growth of the U.S. citizenpopulation and business investments in foreigncountries, this year the IRS increased the num-ber of posts from 14 to 16, adding offices inNassau and Vancouver. The Tehran post, whichwas closed in January 1979, this year was relo-rated to Jidda, Saudi Arabia.Foreign posts are headed by revenue servicerepresentatives (RSRs) who manage the exami-nation, collection and taxpayer service programsat the posts ,in addition to conducting special-ized investigations in support of U.S. domesticexamination and criminal cases. Beyond this,RSRs serve as liaisons with foreign tax authori-ties in both treaty and nontreaty countries.

Compliance OverseasIn 1980 over 16,000 returns were examined andnearly $250 million in additional tax and penal-ties were recommended. While about 20 percentof these returns were examined overseas, mostreturns, including those of foreign entities doingbusiness in the U,S. or U.S. business controlledby foreign interests, are examined in the U.S. InOctober 1978 Congress enacted sweepingchanges for the taxation of U.S. citizens working

Sao PaL110

U.S. Taxpayers Residing Overseas(in thousands)

ULM

LKM

Johannesburg

HIM

1960 1965 1970 1975 1980

31

overseas. During this past year 010 examinedthe first returns filed since the change and theeffect of this legislation is being evaluated forTreasury and Congress.

Assisting Taxpayers Abroad

Approximately 150,000 taxpayers visited officesin over 120 cities in 68 countries seeking tax as-sistance and 1,800 taxpayers attended 84 taxseminars sponsored by IRS. Seven military taxworkshops were conducted attracting over 550participants who in turn helped thousands ofarmed service personnel overseas prepare theirown tax returns.

Tax Treaties

The U.S. has income tax treaties with fortycountries and estate tax treaties with thirteen,designed to eliminate double taxation, removetax barriers to trade and investment and curb taxavoidance.

32

In 1980 IRS representatives met with treaty part-

ners throughout the world to develop the frame-work for improved exchanges of information and

for the resolution of double taxation cases. Byexchanging information under the provisions of

tax treaties, the IRS enhances worldwide compli-ance with U.S. tax laws, mitigates instances of

double taxation and assists U.S. businesses insecuring uniform treatment of their international

transactions. We also continued to work closelywith the Puerto Rican Department of Treasury

and the Virgin Island's Department of Finance toresolve double taxation cases and to exchange

taxpayer return information.

Employee Plans

A taxpayer compliance measurement program(TCMP) for employee benefit plan returns wasstarted during 1980 to examine random samplesof returns to ensure continued compliance withthe Employee Retirement Income Security Act.of1974 (ERISA). Data gathered during the exami-nation of these returns will be used for planningfuture examination programs, improving the se-lection of returns for examination and identifyingneeded changes to the Forms 5500 series re-turns and instructions. Under the program,which began in January 1980, approximately18,000 Forms 5500 and 5500C returns withplan years beginning in 1978 will be examined.

An ERISA noncompliance enforcement program

was established this year to bring into compli-ance those employee benefit plans that received

favorable pre- or post-ERISA det~rmination let-ters but failed to comply timely with the law, finalregulations or other ERISA requirements. Theprogram is designed to protect the rights andbenefits of plan participants by providing limitedrelief from sanctions for those plans that volun-tarily agree to comply with ERISA and restore

benefits to participants that were not providedbecause of failure to comply timely with ERISA.

A revenue procedure issued this year concern-ing simplified employee pension (SEP) plansgives guidance to sponsors seeking rulings andopinion letters for prototype SEP plans. SEPs.made possible by the Revenue Act of 1978, al-

low an employer to contribute annually up to thelesser of 15 percent of compensation or $7.500to each participating employee's individual re-tirement account or annuity (IRA). A model SEPagreement- Form 5305-SEP - available now.is a qualified SEP with no further IRS approvalwhen an adopting employer executes it proper-ly.

A post-review program was initiated to ensurethat all 17 key districts are uniformly applyingthe law and IRS procedures when issuing deter-mination letters on the qualification of plans. Un-der this program determination letters issued onthe qualification of plans and the tax-exempt sta-tus of related trusts by key districts are subjectto selection for post review by the National Of-

lice.

During the year 7 regulations and 32 revenuerulings and procedures were issued, as well as4,621 National Office opinion letters, on masterand prototype plans dealing with Keogh plans,corporate plans and individual retirement ac-counts and annuities, In 1979 the IRS completeda review of pre-ERISA revenue rulings for modi-fication, restatement, obsolescence or revoca-tion and during the current year began makingpublic the results of this review.

Advance determination letters are issued by IRSon the qualification of pension, profit-sharingand other employee benefit plans, During theyear 168,974 determination letters were issuedon corporate and self-employed plans - an in-crease of 20 percent over 1979. Also, 19,378plans were examined to determine the qualifica-tion of plans in operation, to verity the employ-ers' allowable deduction for contributions toplans and to assure that the rights and benefitsof plan participants are protected.

Exempt OrganizationsDuring 1980 the Exempt Organizations activityissued or revised 8 regulations, 35 revenue rul-ings and procedures, 374 technical advice *memorandums, 19 announcements and 4 pubfi-cations, and examined 23,807 exempt organiza-tion returns. In addition, 52,699 applications,reapplications and requests for rulings from or-ganizations were acted on.A total of 22,582 organizations exempt underprovisions of Internal Revenue Code sections501 (c)(3) through 501 (c)(8) have been identi-fied to be examined under the taxpayer compli-ance measurement program (TCMP). Approxi-mately 5,500 TCMP returns will be examined ineach of the four fiscal years beginning Oct. 1.1980.Examination guidelines were published to alertexaminers to various private benefit or inure-ment problems that may exist in the operation ofhome health care organizations. The examina-tion coverage in this area increased from five toran percent in 1980.The use of new guidelines that provide uniformprocedures for identifying, investigating and ex-amining organizations employing questionableclaims of tax-exempt church status have assis-ted in identifying such organizations and re-sulted in successful litigation against many,

33

On May 5th and June 6th. 1980, the DistrictCourt for the District of Columbia in the case ofGreen v. Miller supplemented and modified a1971 injunction prohibiting the IRS from recog-nizing racially discriminatory schools as tax-ex-empt under IRC 501(c)(3). Under the court or-der the IRS is prohibited from recognizing thetax exempt status of private schools in the Stateof Mississippi that have been adjudicated dis-criminatory or have been formed or expanded atthe time of public school desegregation andcannot demonstrate that they are not raciallydiscriminatory.

The order further requires that IRS survey all pri.vate schools in Mississippi to identify those thatwere created or expanded at the time of racialdesegregation of the public schools. The IRSmust then review facts andcircumstances to de-termine if these schools discriminate in admis-sions, employment, scholarships, loan pro-grams, athletic and extracurricular programs. Byterms of the order the IRS must report to theCourt in six months and then on each July 1 forthe next three years.

With respect to schools outside of Mississippi,the IRS was prohibited by sections 103 and 615of the Appropriations Act of 1980 from spendingany funds during the fiscal year to carry out pro.posed revenue procedures setting forth stan-dards similar to those required by the court or-der or to adopt new procedures that wouldcause the loss of tax exempt status. In theseschools the IRS is applying the procedures andexamination guidelines in effect before Aug. 22,1978,

341 Managing the System 35

Research and Operations Analysis

During 1980 the IRS revised its long-range plan-ning process to place greater emphasis on theanalysis and executive assessment of critical is-sues and problems. The new process, includingperiodic executive issues conferences, a Ser-vicewde research plan and a strategic plan doc-ument, will be phased in during 1981. Also, this~ 0year the IRS established a permanent unrep rl-ed income research group.

Major Research Projects

Throughout 1980 IRS information reporting pro-grams were reviewed, a project was begun tomeasure compliance in reporting nonemploy-ment compensation on the newly establishedForm 1099-NEC and a study on the feasibility ofextending information reporting to bearer instru-ments continued.

Following a two-year pilot study the IRS decidedto phase in a program in which payers of non-wage income may satisfy both federal and stateinformation reporting requirements by submit-ting a single magnetic tape of payments to theIRS that will, in turn, generate secondary tapesfor state revenue agencies.

This year, as provided by the Revenue Act of1978, the IRS began a study to simplify all indi-vidual income tax forms and instructions work-ing with private design and language consul-tants. The study provides for a preliminary reportto be sent to Congress in November 1980, whilethe IRS and the contractor will continue to testand refine the proposed new forms and instruc-tions during 1981.

The IRS continued studies to deterrnine compli-ance with some of the approximately 90 provi-sions in the Internal Revenue Code that allowtaxpayers to deter certain tax consequences tolater years. The tax return examination phasesof several studies were completed during theyear and the collected data are being analyzed

to determine compliance levels, tax conse-quences and the need for continued efforts ineach area, These studies involve state incometax refunds, gains on sales of personal resi-dences and sales of stocks with cost basis re-duced by splits or nontaxable distributions.

Other studies dealt with deferred gains on in-stallment sales, amortization of changes in ac-counting methods, recapture of certain deduc-tions on multifamily housing projects insured bythe Departrpent of Housing and Urban Develop-ment and tracking amortization or depreciationon certified historic structures. Efforts also werebegun to track certain other tax benefits, suchas the once-in-a-lifetime exclusion on gains fromthe sale of a principal residence and specialfarm valuations for estate tax purposes,

The IRS continued a study of the highway ex-cise tax structure and different tax funding meth-ods for the highway trust fund by sending ques-tionnaires to IRS personnel engaged in the man-agemeni, examination and collection of taxesdedicated to this fund. Treasury delivered its firstprogress report on this study to Congress thisyear and the final report is due in April 1982.

Taxpayer Compliance Measurement

The taxpayer compliance measurement program(TCMP) is the basic IRS research activity for es-timating the nature and extent of tax law compli-ance. The results are used to plan enforcementprograms, improve computer selection of re-turns for examination, allocate IRS resources,formulate taxpayer information programs andimprove tax return forms and instructions.

This year the IRS completed TCMP examina-tions of a sample of corporation income tax re-turns filed in 1978 and started examination ofrandomly selected employee plan returns(Forms 5500 and 5500C), individual returns(Forms 1040 and 1040A) and exempt organiza-tion returns (Form 990 series).

Statistics

Statistics of Income (SOI) publications issued in1980 included preliminary reports for individualtax returns for 1978 and unincorporated busi-nesses for 1977, plus complete reports of indi-vidual returns for 1977, unincorporated busi-nesses for 1976 and corporations for 1975.

The 1978 preliminary report for individuals con-tained statistics on the residential and businessenergy investment credits provided by the Ener-gy Tax Act of 1978. Data reflecting the effect ofother tax legislation as well as information onhigh-income taxpayers also were shown.

This year the IRS published its first supplementalreport on domestic international sales corpora-tions (DISCs), presenting information on prod-ucts and services exported, by country forwhich the exports were destined. Two othersupplemental reports provided information onthe foreign income and taxes of U,S, corpora-tions claiming a foreign tax credit and on the op-erations of foreign subsidiaries of U.S. corpora-tions.

During the year the IRS also provided a reportdealing with the sale or exchange of capital as-sets for tax year 1973, classified by type of as-set, by the amount of adjusted gross incomeand by the length of time the assets were held.

Other SOI publications completed in 1980 in-cluded a study of private foundations for 1974and a report on individual retirement accountsfor returns filed in 1976.

SOI publications may be obtained from the Su-perintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C. 20402.

In 1980 the IRS furnished the Department of La-bor a magnetic tape file of a sample of returnsfor employee benefit plans for 1977 and provid-ad the Treasury Office of Tax Analysis (OTA) amagnetic tape file containing income tax returndata from a sample of small corporate busi-nesses and their owners for use in a specialstudy. Work also began on developing a systemto provide OTA with data for a report toCongress on the effect of the Crude Oil WindfallProfit Tax Act of 1980.

The IRS also furnished OTA statistics on DISCs,taxpayers who participated in or cooperatedwith an international boycott and the revisedsystem of taxing domestic corporations on theiroperations in Puerto Rico and U.S. Possessions.

Tax Models

The five basic tax models - individuals, corpo-ralions, sole proprietorships, partnerships andestates - used to make timely estimates of thepotential impact and revenue effects of pro-posed tax legislation were updated in 1980. Themodels consist of computer programs to tabu-late and analyze the most current SOI data avail-able in these areas. Under a federal-state ex-change program state governments can obtaincopies of the individual income lax model file fortheir tax administration purposes. The publicmay purchase from the National Archives thesame file without data identifying taxpayers.

Legislative Analysis

This year the IRS developed 16 implementationplans to administer new tax legislation.

37

Requests for Tax Rulings and Technical Advice (Closings)

Subject .

Total

Administrative Provisions

Changes in Accounting Methods

Changes in Accounting Periods

Earnings and Profits Determinations

Employment and Self-Employment Taxes

Engineering Questions

Estate and Gift Taxes

Excise Taxes

Individual income Tax Matters

Corporation Tax Matters

Technical ActivitiesDuring the year IRS acted on 31,284 requestsfor technical advice, including 21,293 requestsfor changes in accounting m6thods and periods,and issued 456 revenue rulings and revenueprocedures.Letter rulings are written statements issued totaxpayers interpreting and applying tax law tospecific sets of facts. Such rulings provide guid-ance concerning the lax effect of proposedtransactions. Letter rulings are not precedentsand may not be relied upon by taxpayers otherthan the recipient of the ruling.Technical advice is issued by the National Officeat the request of district offices to provide guid-ance on the proper applicaton of the tax laws tospecific facts in connection with audits of tax-payers' returns or claims for refund or credit.Revenue rulings are interpretations of the taxlaws published in the weekly Internal RevenueBulletin to inform and guide taxpayers, practi-tioners and IRS personnel.

Taxpayers' FieldTotal Requests Requests

31,284 29,869 1,415

107 76 31

7,980 7,980

13,313 13,313

1,298 1,298

1,041 335 706214 155 59

497 369 128

160 75 85

2,223 2,097 126

4,451 4,171 280

Internal Revenue BulletinThe weekly Internal Revenue Bulletin announcesofficial rulings and procedures of the IRS andpublished Treasury Decisions, Executive Orders,tax conventions, legislation, count decisions andother items of general interest. Bulletin contentsof a permanent nature are consolidated semian-nually into Cumulative Bulletins. Weekly andsemiannual issues are available to the publicthrough the Superintendent of Documents, U.S.Government Printing Office, Washington, D.C.20402.During 1980 the Bulletin included 398 revenuerulings, 58 revenue procedures, 15 public lawsrelating to internal revenue matters and 19 com-mittee reports, 80 Treasury Decisions containingnew or amended regulations, 19 delegation or-

Revenue Rulings and RevenueProcedures Published

Type Number

Administrative 20

Updated Procedures

During 1980 the IRS provided revised proce-dures for issuing rulings and determination let-ters and for entering into closing agreements,provided revised procedures for furnishing tech-nical advice to district directors and chiefs of ap-peals and published a complete list of no-rulingareas that provides for early announcement ofthose issues added or deleted.

Employment taxes 19

Estate and Gift Taxes 46

Excise Taxes 37

Exempt Organizations 35

Income Taxes 260

Employee Plans 31

Tax Conventions 8

Total 456

38

ders, I Treasury Department Order, 22 noticesof suspension and disbarment from practice be-fore the IRS, 253 announcements of general in-terest and 3 court decisions.

Art Print Panel

A new advisory group was created this year toadvise the IRS on the valuation of art prints. Thean print panel consists of print publishers, dis-tributors, retailers and curators and will reviewtaxpayer appraisals to determine whetherclaimed values are appropriate. The panel willhelp the IRS cope with abusive tax shelters thatuse inflated appraisals of art print publishingventures.

Internal Audit

Additional revenue of $150 million accrued toIRS when management acted on Internal Auditreports that strengthened controls, improved op-eralions and brought about better service to tax-payers. Top managers were provided with a bet-ter perspective on how their functions operatedthrough 42 coordinated audits that sampled of-fices to evaluate IRS programs nationally and re-gionally. Abstracts of Internal Audit findings aredistributed monthly to IRS officials to alert themto areas that may need increased managementattention. Reports are also made to top manage-ment on the implementation and effectiveness ofactions taken on General Accounting Office re-views of IRS activities.

This year Internal Audit also established a groupof auditors to review the design and develop-merit of new and significantly modified aulomat-ic data processing systems, These reviews de-termined whether internal controls, documenta-tion standards and audit trails existed andwhether controls were cost effective, efficient,comi5liedwith legal requirements and carriedout management policies prescribed for the sys-tem.

Internal SecurityInternal Security Division investigations to pro-tect the integrity of the IRS resulted in the arrestor indictment of 107 taxpayers and tax practi-tioners and 65 IRS employees or former employ-ees and 89 persons were convicted or pleadedguilty. Of these convictions, 20 were for briberyand 14 were for assault while the rest involvedconspiracy to defraud the government, obstruc-tion of justice, embezzlement, disclosure of con-fidential tax information and impersonation of afederal officer.

One investigation uncovered corruption involv-ing members of an IRS unit that appraises val-ues on real property. Bribes estimated at$62,000 were paid to some IRS employees anda supervisor for placing low appraisal values onproperty for federal estate and gift tax purposes.The appraisals were estimated at $17 million below fair market value and the potential tax lossto the government was approximately $4.5 mil-lion. Former IRS employees, executives in pri-vate industry, attorneys and certified public ac-countants were among the 13 defendants in thiscase. All were convicted,

Assaults and threats against IRS employees in-creased from 455 in 1979 to 508 in 1980. TheDivision protects all IRS employees so threat-ened or assaulted while perlorming their dutiesand seeks vigorous prosecution of these cases.

In addition to investigating criminal misconductor irregularities affecting IRS employees or oper-ations, Internal Security conducts backgroundinvestigations to determine the suitability of ap-plicants and newly hired employees. The Divi-sion completed 11,727 background investiga-tions of employees during the year and conduct-ed police record checks on all persons consid-ered for temporary appointments. These investi-gations and record searches resulted in the re-jection of 107 job applicants and dismissals,suspensions, reprimands, warnings or demo-tions against 376 employees. In addition, the Di-

vision conducted 527 investigations involving al-leged employee misconduct and 128 of theseinvestigations resulted in exoneration of the em-ployees involved.

Integrity Program

Continuing its efforts to assist IRS managers inmaintaining a high degree of employee honesty,the Inspection Service's integrity program isaimed at preventing fraud, waste and error. Thisprogram includes reviews and investigations todetect and deter material fraud and weaknessesin controls.The Internal Security Division continued to in-crease the number of integrity awareness pre-sentations to IRS employees, which include vid-eotapes that realistically portray bribery situations as well as other possible integrity breachesemployees may encounter.

Fiscal ManagementDuring 1980 savings of about $1.4 rnillion werereported and verified through a management-generated savings program that rewards man-agers who cut costs. This procedure allowsmanagers to reapply half of the saAngs resultingfrom their cost-cutting initiatives to programs un-der their control that they determine to be mostin need of additional resources. The balance isused to deal with Servicewide problems or isgiven up in the next year's budget.

Personnel

In implementing the Civil Service Reform Act thisyear the IRS developed critical job elements andperformance standards for managers and man-agement officials covered under merit pay andimplemented a Servicewide merit pay perfor-mance appraisal system. In addition, critical job

EE

elements and performance standards were es-tablished for approximately 55,000 employeesunder 300 different standard position descrip-tions not covered by merit pay. The Senior Ex-ecutive Service (SES) and the federal equal op-portunity recruitment program were implement-ed, the Executive Resources Board was revised,a Performance Review Board was establishedand all personnel training programs have beenor are being revised to reflect new statutory andregulatory requirements.

Recruitment

This year the IRS negotiated an agreement withthe Office of Personnel Management (OPM) toaccept fully delegated authority to examine andcertify candidates for the internal revenue agentoccupation nationwide. This delegation of au-thority

_with an improved equal employment

opportunity affirmative action program, targetedadvertising and a new rating schedule - will im-prove the timeliness and effectiveness of recruit-ment. The IRS is negotiating for similar authorityto recruit and examine for additional occupa-tions unique to IRS, such as revenue officer andtax auditor.

Labor Relations

This year the negotiation of a master laboragreement continued with the aid of the FederalMediation and Conciliation Service.

Labor relations information is provided to fieldoffices biweekly through the Labor Relations Re-port, a newsletter for executives and personnelstaffs.

Awards and Recognition

Joseph T. Davis, Assistant Commissioner for Re-sources Managemeni, received the National Civ-il Service League Career Service Award thisyear. In September, Deputy Commissioner Wil-liam E. Williams and Assistant CommissionerDavis were two of only forty-nine federal execu-tives to receive the SES Distinguished RankAward from the President. In addition, four otherIRS executives received SES Meritorious RankAwards from the Secretary of the Treasury. Theywere: Thomas Cardoza, Western Regional Com-missioner: William Waters, Mid-Atlantic RegionalCommissioner; Americo Afford, Mid-Atlantic As-sistant Regional Commissioner for ResourcesManagement, and Joseph Kump, Fiscal Man-agement Officer. Also, 56 employees receivedPresidential Letters of Commendation for contri-butions resulting in benefits of $5,000 or more

tE

or for exceptional achievement in specific Pro-grams and 49 more were recommended to re-

ceive commendation letters.

Awardspresented under the IRS incentive

awards program included 13 Commissioner's

Awards and nearly 13,000 awards to employees

for adopted suggestions, sustained superior per-tormance and other special acts or services,saving about $3.3 million.

other Personnel Programs

The IRS has replaced its alcoholism Program

with a broadly based employee assistance pro-

gram through which employees troubled by any

personal or emotional problem will be coun-

seled, at their request, to help them identify

problems and motivate them to seek profession-

al assistance

The IRS is conducting tests in eleven offices un-

der OPM's experimental program to examine

and evaluate schedules that allow flexible and

compressed working hours as well as part-time

employment. These tests are being monitored

through the use of employee questionnaires, on-

site research coordinator reports and an analy-

sis of production data. Information and conclu-

sions concerning the program will be reported to

IRS top management and to OPM in May 1981.

Centralized Services

In the second year of centralized services, in-structions and guidelines were issued to bringabout the uniform processing of work docu-ments by all districts, A new quality measure-ment system was developed as well as a com-puterized work planning and control system. Na-tionwide implementation of both systems wasstarted in the fall of 19BO.

Facilities Management

This year the IRS began a major building pro-gram in support of the service center replace-ment system that involves the replacement of 'If-most all automatic data processing equipment inthe ten service centers. The design for the firstgroup of five service centers was completed in1980 and by 1983 now computer rooms will befinished in all centers.

An IRS/General Services Administration task

force on energy conservation completed an on-site survey of all IRS service centers and estab-lished plans and schedules for immediate ener-gy conservation. The measures recommendedwill result in energy savings of up to 33 percentbased on 1975 use. This energy savings could

keep approximately 3,600 average homes Com-fortable through one entire heating season.

Management's continued emphasis on reducingthe number of calls placed over the federal tele-communications system network enabled theIRS to absorb a tariff rate increase of approxi-mately $160,000 without additional cost.

Paperwork Management

The IRS continued its efforts to eliminate unnec-

essary internal management reporting, Cancel-ing 26 reports in 1980 for annual savings of ap-proximately $540,000

Disposing of some 185,000 cubic feel of rec-ords and retiring nearly 432,000 cubic feet tofederal record centers resulted in the release ofspace and equipment valued at $6.9 million.

During 1980 the IRS completed testing and eval-uating equipment for the wage information re-trieval system (WIRS), one of the largest Com-puter-assisted microfilm retrieval applications inthe country. This program, conducted at the An-dover Service Center, is an integral part of thefederal government's effort to eliminate dupli-cate information reporting by the public.

Other Facilities ProgramsThe IRS had 4.5 disabling injuries per millionstaff hours worked in calendar year 1979, com-pared to 3.2 disabling injuries per million staffhours the year before. IRS employees drove 121million miles with an accident frequency rate of5.2 accidents per million miles driven. In 1978,employees also drove 121 million miles. but hadan accident frequency rate of 5.5 accidents foreach million miles driven.

Braille Machines and reading machines to aidresearch by visually handicapped taxpayer ser-vice employees are being tested and evaluatedat seven Pilot locations around the country.

Security

During 1980 the IRS reviewed and evaluated se.curity at computer sites, developed systemicand procedural safeguards and assisted systemdesigners. The IRS also conducted safeguardreviews of federal, state and local governmentalagencies that receive taxpayer information toassure that those agencies comply with IRS se-curity standards. IRS has initiated a risk analysisprogram to examine actual and potential threatsto the security of automatic data processing in-stallations and systems and to recommend costbeneficial safeguards to reduce the risk of loss,alteration or unauthorized disclosure of sensitiveautomated data.

Training

This year the IRS conducted 555 trainingcourses, providing some 96,700 Opportunitiesfor individual training, with some employees par-ticipaling in more than one training activity dur-ing the year.

41

A new training plan has been adopted, callingfor about one-half of the training curriculum inthe next decade to be delivered at the largerPOSts-of-duty rather than in centralized class-rooms. This will result in a need for fewer in.structors and Savings in travel and per diem.The IRS also conducted a revised executive de-velopment program, added a new tax adminis-tration course to the executive training curricu-lum and introduced a new computerized systemfor administering and monitoring individual de-velopment of executives.A new training program prepared internal reve-nue agents to summarize the prosecution's case

orto give expert testimony in trial appearances.

Pretrial and during-trial duties and actual pre-sentation of expert testimony are all stressedduring the training.

Training also was developed to help problemresolution officers manage their program and tolearn to identify systemic and procedural prob-lems when attempting to resolve taxpayer com-plaints not satisfied through normal IRS chan.nels.

In response to passage of the Crude Oil WindfallProfit Tax Act of 1980, training was developed toprovide selected examiners with an understand-ing of the law and congressional intent. informa.tion about required examinations and verifica.tions under the Proposed regulations and anoverview of the report writing implications of theAct.

Other new training programs developed in 1980cover a basic and advanced statistical samplingcourse for revenue agents, combined annualwage reporting, disclosure orientation for ser-'Ace Center employees and illegal

taxProtester

training for employees who have public contact.And, the IRS has entered into an agreement withArkansas Enterprises for the Blind so that somevisually impaired students will receive IRS train-ing needed for employment with the IRS.

EB

Equal Employment Opportunity

From July 1979 to July 1980, full-time regularemployment increased by 2.4 percent. Thenumber of women employed increased 6.1 per-cent and minorities by 12.6 percent. Women in-creased their representation in the highergrades from 5.3 percent of the positions at GS-13 and above to 6.5 percent and minorities from6.5 percent to 7 percent. The employment ofwomen and minorities also gained in such keyjobs as revenue agent, attorney, criminal investi-gator and appeals officer.Nationwide, IRS offices observed such specialevents as Black History Month, Women-in-Gov-ernment Month, Hispanic Heritage Week andAsian/ Pacific American Week. All managersand executives received actual employment op-portunity (EEO) training as part of merit pay andSES training, while other EEO training was of-fered in courses such as that given to specialemphasis coordinators.IRS contract awards during 1980 totaled$23,238,000 to small businesses and$6,020,000 to minority and disadvantaged firms.

Data Services

The past year has been a period of transitionwith Data Services preparing for the equipmentreplacement program (ERP). Two divisions weremerged to farm a Tax Systems Division, consoli-dating analysts and programmers; guidelineswere established for systems development; im-proved procedures were introduced for analysis,design and programming, and greater emphasiswas placed on use of a high-level computer pro-gramming language.

The service center replacement system (SCRS),the first portion of ERP, moved closer to realiza-tion with the issuance of a formal invitation tothe computer industry to Submit bids for the sys-tem. Another step toward SCRS was taken with

nationwide installation of the data communira-

tions processing system (DCPS). DCPS current-ly augments the integrated data retrieval systemand will be coupled with SCRS.

In 1980 Data Services worked with its IRS usersto design and program changes that would elim-inate the need at ten service centers for manual-ly sorting returns and documents by district of-fice code. Beginning Jan. 1, 1981, service cen-ters will no longer sort most tax returns and re-lated documents by the geographic locations inwhich taxpayers reside. Previously such sortingwas done for control and accounting, but theseprocedures will now be automated. It is estimat-ed that this refinement will save the IRS $2.2 mil-lion when fully implemented.

Data Services also continued to respond to userneeds for changes and improvements to existingprograms. Currently there are more than 2,700computer programs active in the National Officealone to meet user requirements.

National Computer Center

With construction and renovation continuing atthe National Computer Center (NCQ, five com-puter systems, the library of some 125,000 mag-netic tapes and related functions were moved toa permanent location in an addition to the exist-ing building.

10 41111111Wftftw,; sairsisift-J-4_FZ1

As of July the number of taxpayer accounts onthe individual master file had grown to 117.2million, an increase of 2.8 percent over thesame period in 1979 The business master filegrew to 22.9 million accounts - 9.1 percentabove 1979. The exempt organization, employ-ee plans and individual retirement account mas-ter files contain 1.1 million, 1.3 million and260,000 accounts, respectively~

Another computer system, making a total ofnine, was installed and producing in March,making it possible for NCC to accelerate the

processing of more than 300 million informationdocuments to assist in screening returns for ex-amination.

Detroit Data Center

The payroll system, which services all of IRS,was converted to a new computer system thatnow handles the bi-weekly payroll for more than90,000 employees, As the IRS'central site formanagement information systems, the DataCenter generates about 150 personnel and flcal reports, and more than twice that many forother projects each month. This year the Datas-Center also has provided TCMP tabulations,management information reports and specialevaluations such as the casino/racetrack win.nings compliance study.

Chief Counsel

The Chief Counsel, an Assistant General Coun-sel of the Treasury Department, is the chief legalofficer for the IRS and is a member of the Com-missioner's executive staff. As such the ChiefCounsel advises the Commissioner on mattersPertaining to the administration and enforcementof the internal revenue laws and related statutes,as well as on nontax legal questions.

The Chief Counsel is assisted by a Deputy ChiefCounsel (General), a Deputy Chief Counsel (Lili-gation), a Deputy Chief Counsel (Technical) andseven regional counsels.The Office of Chief Counsel employs over 900attorneys, making it one of the largest law firmsin the country. These attorneys are located inthe National Office, the seven regional counseloffices and 45 district counsel offices.Approximately 40 percent of attorney time isspent handling litigation in the United States Tax

a]

Court. The attorneys also advise the IRS and as-sist the Department of Justice on refund suits,criminal tax cases, suits, seeking the disclosureof files and documents of the IRS, collectionsuits, and nontax litigation involving the IRS infederal and state courts.

In 1980 the Chief Counsel library began to re-classify the 100,000-volume collection on laxa-tion, legislation and economics. The project willbe accomplished with an automated catalogingsystem, allowing the library to participate in thefederal bibliographic data base, greatly expand-ing reference and interlibrary loan service.

Criminal TaxFor 1980 there were 2,726 referrals by Counselfor prosecution and some 19,000 staff hourswere spent on legal assistance to Criminal In-vestigation Division,Procedures for processing grand jury requestsand evaluations were revised during the year tospeed up to the handling of such matters. Dead-lines were established for regional and ChiefCounsel review of requests for the initiation ofgrand jury investigations. In addition, ChiefCounsel established procedures for providingevaluations of the results of grand jury investiga.tions to district counsels. The IRS now is provrid-ing a faster response to United States Attorneys'requests for grand jury assistance and evalu-

Receipt and Disposal ofCriminal Tax Matters

Prosecution Cases ReceivedFrom Criminal Investigation

Total Opened

Total Closed

2,267

3,702

Counsel Declined 523Department of Justice Declined 632

U.S. Attorney Declined 655

Prosecutions Completed 1,892

Opinions

Pending Beginning

Total Requested

35

109

Total Rendered 97

Pending End 47

44 45

ation of the results of grand jury investigations,

In United States v. Clardy, 612 F. 2d 1139 (9thCir. 1980), the circuit court upheld the IRC sec-tion 7206(2) conviction of an individual who soldtax shelter schemes that involved a fictitious"paper trail" to justify certain interest deduc-tions.

In United States v. Peister, No. 78-1961 (1 OthCir., decided Aug. 4, 1980), the court upheldthe conviction of a tax protester who used achurch /vow of poverty defense in a section7205 prosecution. In upholding the convictionthe court found the church/vow of poverty as-sertions insincere.

EP/EO

During 1980 the Employee Plans and ExemptOrganizations Division developed regulationsimplementing the Employee Retirement IncomeSecurity Act of 1974 (ERISA), the Tax ReformAct of 1976 and the Revenue Act of 1978. Reg-ulations were published in proposed, temporaryor final form on such matters as the limitationson contributions to and benefits from employeeplans, the elapsed-time rules for minimum vast-ing and participation requirements for employeeplans, the rules for medical rembusement plans,the rules for voluntary employee benefit plansand the. rules for disposition of private propertyand self-dealing for private foundations.

Employee Plans andExempt OrganizationsDivision Cases Received

Type of Case

Revenue Rulings 46

Letter Rulings 29

Technical Advice 41

Other Advice 28

Legislation

Regulations 11

Miscellaneous is

Total 173

General Legal Services

General Legal Services attorneys tried 103cases with 781 hours of trial time in 1980, Litiga-tion in the personnel and labor areas increasedsubstantially again this year and questions in-

2M

HIM

him

lm~

1976 1977 1978 1979 1980

volving matters of ethics also rose sharply dueto the enactment of the Ethics in GovernmentAct of 1978, The Division also is responsible forreviewing the financial disclosure statementsthat IRS and Chief Counsel officials are requiredto file under the Act.

General Litigation

The General Litigation Division furnishes legalassistance to the IRS in connection Win the col-lection and internal assessment procedures re-lating to federal taxes. During the past year theconstitutionality of the crude oil windfall profittax has been challenged; several states have re-vived attempts to obtain federal tax refundsthrough local escheat laws; the issue of whether

General Litigation Cases Received telephone companies are to be considered

Types of Cases- Regions: 1979 1980

BankrupteyAct Proceedings 2.104 3,211

Miscellaneous Insolvencies 70 80

Decedents' Estates

Suits to Collect Taxes

386 339

633 754

Section 2410 (28 U.S.C. 241 0):Interpleaders 302 352Others 243 691

Injunctions 146 150

Disclosure and Testimony 461 505

Summons Cases

Erroneous Refund Suits

6.799 7,757

31 19

Miscellaneous Court Cases 1,357 1,857

Advisory Opinions

Tax Return Preparers:Advisory OpinionsCourt Cases

Total, All Regions

National Office:

Appeals

Advisory

4,870 5,120

12 137 12

17,421 20,860

1979 1980

226 335

324 360

Other Centralized Cases- 13 14

Total, National Office

Total, All Reglicins &National Office

third-party recordkeepers under IRC7609(aX3XC) because they issue credit cardshas been tested; tax protesters have continuedu~~,.;,tao,irnpede rolleclion of taxes through the

se or incorrect Forms W-4; the authorkty of district directors to direct employers todisregard Forms W-4 as false or incorrect wasestablished; IRS information-gathering duringaudit in connection with its taxpayer compliancemeasurement program has been challenged,and the Supreme Court again upheld the broadauthority of the IRS to obtain information bymeans of a summons in United States v. Euge,444 U.S. 707 (1980).

Interpretative

Much of the work of the Interpretative Divisionduring 1980 was in fulfilling its responsibility asprincipal legal advisor to the division directorsunder the Assistant Commissioner for Technical.A number of revenue rulings and technicalprojects were considered, especially'in connec-tion with IRS efforts 10 deal with tax abuse de-vices and questionable tax shelter schemes, Inaddition, legal advice was provided on suchmatters as the implementation of the new in-come tax withholding exemption provisions.

Legislation and Regulations

The Legislation and Regulations Division contin.so 709 ued to develop regulations to implement the Tax

117,984 21,569

Includes actions for injunctions andtor dedaratory relief.

Reform Act of 1976, the Revenue Act of 1978,the Energy Tax Act of 1978 and the ForeignEarned Income Act of 1978. The Division also

Receipt and Disposal of General Litigation Cases - National and Regional

Status

Pending Oct. 1, 1979

Received during year

Disposed of

Pending Sept. 30,1980

Interpretative Division Cases Received

Type of Case

Revenue Rulings

Letter Rulings

Technical Advice

Other Advice

Total

Court Man-Court Total

10,441 1.672 12,113

15,571 5,998 21.569

13,503 5,904 19,407

12,509 1.766 14,275

1975 1976 1977 1978 1979 1980443 423 399 385 302 255

117 114 122 98 32 77

80 73 80 60 37 59212 257 189 175 141 190

852 867 790 718 S12 Sol

[E

Receipt and Disposal of Legislation and Regulations Division Cases

Type of Case

Legislation 55 55 52 58

Regulations 319 96 90 325

Miscellaneous 66

I

Total 452 217 211 458

began to develop regulations to implement theCrude Oil Windfall Profit Tax Act of 1980.

During the year the Division published 46 new fi-nal regulations, 18 temporary regulations and 58proposed regulations, while the public partici-pated in 27 hearings on proposed regulations.

Some of the regulations projects were: targetedjobs credit, taxation of unemployment compen-sation, disability income exclusion, tax treatmentof certain homeowner associations, withholdingon gambling winnings, gas guzzler tax, variousaspects of the windfall profit tax, reporting withrespect to income from bearer certificates, de-posit requirements for withheld income andFICA taxes and recovery of excessive profits ongovernment contracts (Vinson-Trammell Act).

Rotund Litigation Cases Received

K~UM iu.

1976 1977 1978 1979 1980

Pending Pending110/11/79 Received Disposed 9/30/80

Tax Court Cases Received

(Total above barsis total number 16,995of cases.)

EM

69 75

URTIE

Tax cases otherthan small cases

ULM

EM

MMM

Small tax cases

20,660

UM

1976 1977 1978 1979 1980

47

Tax LitigationIn test cases a district court in Delaware and theTax Court ruled that International Telephoneand Telegraph's 1970 stock merger with theHartford Fire Insurance Company could qualityas a tax-free reorganization under section368(a)(1)(6), even though cash had been paidfor 8 percent of the acquired corporation'sstock. The trial courts' opinions determined thatthe statute's "solely for voting stock" require-mem could be satisfied when the corporationacqui red at least 80 percent of the target corpo-

Tax In Litigatlon-Tax Courl Cases(in thousands of dollars)

ration's stock in exchange for its voting stock,notwithstanding the remainder of the targetstock could have been acquired for cash. Theseholdings reversed the IRS' position and the ac-cepted position of the majority of the tax bar forthe last 40 years.

The First and Third Circuit Courts of Appeal re-versed and remanded the lower courts' opin-ions, thereby sustaining the government's posi-tion that "solely" in the statute provides no ex-ceptions. The issue is still pending in the Fourthand Ninth Circuits.

All Tar Court CSSSS2 *"I Tes Caere

at*...,w T- antl Plataftlas -0-plifeente amse, Tanse, real Penalties 0-pripasse

or In DOW. claimed Dres. .1 In D""CSSSS. Dispute athard retiredCases DIM" Claimed DW-

.k" raised

Pendling10/01/79 27.310 $3.707.483 1273.220 4,450 114.5W lin

R..W.d 20 2,047.890 28,777 7,949 11.318 soDisposed' 13:6876'6 745,053 $234.921 15,217 11,5D1 5,389 6.787 $2,968 56 SM

Racm-ery Rate - 31.5% 75.6% 51.3% 59.2%Pending

9/30/80 34,103 5,010.320 286.780 7.030 10.081

- Amount determined expressed = percentage ofamount asserted or claimed, These amounts do not If,clude proposed assessments that are agreed to by the

taxpayer at district or appellate conferences. In the

cass of a claimed omripayment the rsco,,ely ratesshoom above represent the portion of the amount In dis-pute that win refunded to the taxpayer.

I Does not include an inventory of nondeficiancy-3consisting of 70 cases pending 10/1 /79, 54 receipts, 39disposals and 85 cases pending 9/30/80.

Includes both Small tax cases and otherDisposals include cases tried, settled, and dismissed.

Some of the determined amounts am for cases thatwene subsequently appealed.

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

CourtTotal Mo.

Courts of Appeals 242 195

Originally Vied in Tax Court -156 132

District Courts, 186 63

Supreme Court

I Of the cases originally tried in Tu Court, the Courts ofAppeals rendered 156 opinions In 214 dockets, incJud-

Ing 187 dockets for the go-ment, 23 dockets againstthe g-mment and 4 dockets partly for the govern.

ment.

plarity foreast partly

Fe, the Agishad 1. AgehM the

% % 111. %

80.6 40 16.5 7 2.9

84.6 20 12.6 4 2.6

73.3 20 23.3 3 3.5

2 01 the casse viginally tried in District Courts, the

Courts of Appeals rendered 86 opinions in 111 cases,

including 87 cases for the government, 20 agaimt the

goverrment and 4 partly for the government.

48 Appendix a

Trial Court Case Record(Opinions Rendered-Refund Litigation and Tax Court Cases)'

Decided In lanno, -Number 20 .23 146 150 347 310 325 330 672 640

Of Gwenment 41.cel 50.0% 46.0% 60.3% 65.8% 552% 53.4% 49.8% 51.0% 52.5% 52.2%

Diecided in fainvor -Number 15 24 69 51 62 55 65 71 127 126of Taxpayer -percend 37.5% 48.0% 28.5% 22.4% 9.9% 9.5% 10.0% 11.0% 92% 10.3%

Decided partially for theTaxpayer and partially -Number 5 3 27 27 219 215 262 246 481 461

for the G.-t -percent 12.6% ill 11.2% 11.8% 34.9% 37.1% 402% 38.0% 37.6% 37.6%

Total Opinions

Related Cases am reflected as one opinion, s647Tar Court opinions im,olhing 86tcasissotherthan

50 opinions in Count of Claims Involmng 57 Cases. Small Tax Court Casee.

3228 opinions ~n District Courts imtolving 250 Cases. I On Cases for which decisions were entered during the

- 580 Tax Court opinions invohnng 615 Small Tax Cases. fiscal year.

Tal Court,

Geoff of DNOW Srnau Ted,Cialme courts Q_ on- Total

1979 ISM 1979 IOW 11971 19W IM ISW 1979 111111110

40 50 242 228 628 580 652 647 1~2110 1,227

Contents

Tax In Litigation-Refund Suits'(in thousands of dollars)

statue

1:11011,11cl Cuft court at claw" TOW

Nanniber Amoand Amount NumMer. AmOuld Amaxterl Number Ameand Arecand

of In h, .1 In to .1 In In

c- owpuw sum Cases DftpUW flow c- cup~ sulp

Perroling 10/01 /79 2.932 S504,896 793 $748,222 3.72531,253,118Recithred 736 95.137 162 76,166 898 171=D.p."W 1.01148 122.012 206 123,628 1.294 245.640Amount in SuM M.lG6 $108,418 $198.524Amount Not

Refunded 28,947 66,275 95.222%Not Refunded 32.1% 61.1% 48.0%pending 9130/80 2,580 478.021 749 7DD.760 3,329 1,178,781

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

origin. sought as, a refund.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.

Statistical Tables

Table 1. - Internal revenue collections bysources and by Internal Revenue regions,districts, states and other areas/51Table 2.- Internal revenue collections bysource/58Table 3.- Internal revenue collections byprincipal sources/60Table 4. -Amount of internal revenue refundsincluding interest/62

Table 5.-Number of internal revenue refundsissued/63Table 6. -Overassessments of tax as the resultof examination/63

Table 7. -Number of returns filed by InternalRevenue regions, districts, states and otherareas/64Table B. -Returns filed, examination coverageand results (1980)/66

Table 9.-Returns filed, examination coverageand results (1979)/68Table 10. -Number of returns examined byclass of tax and by Internal Revenue regions,districts and other areas/70Table 11. -Additional tax and penaltiesrecommended after examination by class oftax, and by Internal Revenue regions, districtsand other areas/71Table 12. -Returns examined by ExaminationDivision/72Table 13. -Results of collection activity/72

Table 14. -Civil penalties assessed andabated/73

Table 15. -Appeals Division receipts anddispositions of cases not before the Tax Court(nondocketed)/74

Table 16. -Appeals Division receipt anddisposition of income, estate, and gift tax casespetitioned to the Tax Court (docketed)174

Table 17. -Requests for tax rulings andtechnical advice (ciosings)/75Table 18. -Determination letters issued onERISA employee benefit plans/75

Table 19. -Number of returns examined bytype of exempt organization/75

Table 20. -Number of active entities onexempt organizations master file/76

Table 21. -Disposal of exempt organizationapplications/76

Table 22.- Internal revenue collections. costs,employees and U.S. population/77

Table 23.-Costs incurred by Internal RevenueService by activity/77

Table 24. -Costs incurred by Internal RevenueService by office/78Table 25. -Personnel summary/79

Chronological List -Commissioners ofInternal Revenue and Acting Commissionersduring transitory periods/80

Principal Officers - of the Internal RevenueService as of September 30,1980/82

Organization Chart/88

Map -of Internal Revenue Service regions,districts, and service centers/ Inside back cover

50 1 Statistical Tables 51

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

T-I=

oo'~.

IoIII-oVI -And-W,--

-- I- ..T-1 - -*w _.M

MCA- V.,"iI,oIIi uIMPI"-II- 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" ~,375 545.9113Al-y .... ........ ... 3,522,197 301029 3.173,521 339087 2.797.105 %373 27.9MAo~. 126,039 1.099 629 193,125 W5.N7 10.829 10,30

(SN (C)0 072 W83 ,NO-

"7:0"6.74':510, 1 9.182,103 16.2. 89,720

~:02' wg:m 11.47~ N7." U3 31,IW 56,30530110 , .... ......... W 7,593,320 1,309 641 G'OOa.557 787.3M77' 711 WHOB rWVw ..... ....... (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, 0231--1 ........... 39,659,092 9,157.7N 29,-~In 2,725.N3 7,102 2;0po~-'

1 479.717 212,706 1,209,029 218,702, Mp h "ON':'- 1. .153:.2,1,1 2~4.1

'I'm187.652 1

2. 47.U7 ON 15w............... 435

N

1:41-11 ~MI'ld I D C) 13.715,826 970,N8 12J75,74D 1.656 700 1M917.00 0I.MVMAN 58 738j-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 :1IS 1.2:11 1 1~447 122 9,913.1`81 1,012.596

'11 307123 147.763M

4.36,318 90,421

(V"V 69:15a 899.625 6,712.203 1,25a.169 5.2w"N 112,W 52,487z.,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".779AU-,4'.5'7'1:171WO '.5W207:5741'6

36.810,278 1,096432 5.64I.N7 3,07 68.651Go,.. .... ....... . .. (So.hr--)

N7.9m 645.700 3,1153,977 2.615 WW33461.428 AM 615 2,961,6DO WIN 2,424.026 939 30147G-0 ............ (N- Ca,oh,a) ........... 9.831.734 1.425 M6 6.8154,193 I.IM,921 5,637.427 477 70,368j'C'ooo ......... .. W-~) .. ........ .. 1,978.481 2D4 577 1,718,718 472.511 1,228,548 1~173 16,487j,c-.................... 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 49,498_-,Rw. ............. .................. .... "AM., 0"J" -W,731.272 7,2ft- 60.053,22B M.- a. 1.C-,n.,,- 85,832 1,659,664 8,306,09 1.114,951 7,182.231 17.104 71:903C--'-- :: :::: *:::::: - f-' ZZ ~'7.09.500 2,1N 074 14,141.- 1.600303 12.431,412 'O'in 99.227.- .... I ...... ..... 25,097,3M 2,547.904 21,601.993 2.0406N 19.367,682 U.113 159,U"'d,.... ..... .... .. 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.D9OM~'A". M912 11.142no

65,082 36S 9.72 .838 MAX4. =a.$ 4.3.432A 712:'2"19 57:170 w:~% 208,455 .40 3M 3 5,024Ch.p. 1178,978 ..29 ND 24,837,389 3.077,725 21,219,U3 341 720 198.401I~495,684 W5,w 3,721.719 IORU4 2629,161 1'oN 26,970V 016 N,3s3 746,877 228.02 512,722 12 5.311M-oo.n).

Va7 645 11-11. 7.-.914 "OU.08 6,U9.817 1.777 .1.482

L..............3.161,851 511.318 2~"W.621 567,503 2,078,613 126,024 18,481

s, I..,I.-I) . ....... ..... 13033743 1.69OB37 10.626,142 1,403,437 $.%3.W2 179.879 WNM:

-Iota) ............. 11.673,809 1 M,105 9,651.161 I.OW.7D1 8,217.962 MuN 67.443.

...... ... (No (1,) ........... .. 5410,155 05.16, 4.30 I'M M.823 3.336.811 a'M 31,056","a... 11.31.,M 5019161- II.NZ343 WMIS3 .8,W2 W8261,443,692 131,W4 1.272.442 2N397 W41183 9,796Cg"_ ::~:::: ::,:: IA.- 21.M.3 ..01.008 11A.,284 3.131,700 11,143.977 117:'4o12.......... 851.446 95~389 W.786 221.D70 427.013 2D'IjI. .................... ............. 15 649.8`6 2,781,478 11,303.230 Z906583 8,291,1108 13,783 91.051No- ............ . ~Co-do 27,783.- 464.015 6,913 ON M'555 a.872.579 31,861 38'0,126 M 272312'1' In 509,866 1,363,005 1.480 IB,OD3o"= . I .............. ............. .29691 858:631 ~ Q:923 I.IN,276 4.325,2N I.M 31,4N13~297,415 I,4W.3OO 5,M903 1.032,676 4,016,222 .2 37.7625 002.2M WI.7N 3,827,07 9M.1w 2,698,597 167.64. 28,W5........... .... ....... KIM On 1017071267 WMITIV 13.7.1,476 214.695 5MAIRA-1I ...... - ~.) ............... M 480 W,469 823.93a 121,517 697.679 4.740a.,. :'..) .. .... ....... 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 .onL. A.. ..... .... ... (1511 (1) 34,055,637 5.158.610 27~171,169 5,521,M '.7. 226.365P-i . ........ 3,776.369 343.357 3.UI,523 757,225 2,555396 NO ID21340.992 366.085 3,698.451 552.M5 3,OID,721 -935

1M, 101,772.172 196,428 1.486,577 378,331 1.095,30 1 12,8785.'~ al. Cq . ..... .... (Ut.h)....................... 180.497 222,066 1.601,145 268.915 1.318 ON 1,932 1.~M.o F j5oe V) I..) .......... 244817.224 2.774.247 W,359.4M 3,672,9M IUM M 211.011 I52.DBOP.-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 MmP-R'.. ........... __ 7M.CM 15716 493,097 29.622 .5,Dj7 41Ct- .......... ....... ... ................ ...... 1,5M.498 141,867 1,421.327 IM,204 I.W4.91.8 61ns78;

1-1 OIoo.". . ...................... .......... .1.014.077 -30~663 -1~021,220 -1.G34.7W 7.252 6,278G.. I --N N. FICA- 640.109 46.088 W021 594.021T,".,. 1.G-- .1 G- ................. 49,M -19,235 .19.MW thNW I— of F-W -o~ IN= IN= IN=C,Zr,N I- lo, E---,o f,,II od

E- F.Id ~.... ...... 38.6W 38,832 38,832EI,,,,,O

I.. 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,07ISOM

~'0 Cow .0 481758Z I:a 45,M6% 5,499.392 XM1,053 48,652 .5,579

P-y"~ia13'Wa ,U8,003 2,715.254 12613N3 27,977 171.13D

T_28,26a,116 3,109m 23.UI.483 2,899.Q7 20050,727 U3,146 241,18437MUN 7,2n.4W 25,707,511 6.M.283 19jM.785 21.V27 M8,5110

Table l.-Continued Table I.-continued 53

(in thousands of dollars) (in thousands of dollars)52

(Stool .g*

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

A.g-

....

..... . ......D,oto. ... (SIll, W

.............S,l,, (W

") i:::::: :: ~p. .............. (M IlllIAo

. ... ................._-

.. ... i

I— ....... ...... (-~) ...... .......

................Wimngtol ..............~R"l

Aloo. .....ow- ::: ...........

..bl. ................. (SoWh C.Ioll.) ...........G=1. ... .......... (- CIoFA.) ...........j:c. ............ u"Imotp!)

-I Itell ii;gioitt .....................................

c-`d~

I-ool ............. ..........

o*"`wI ....... ........ (b) ~) ............

DIF,~ ............... ..........F.lVo ........... ........ D-.)..

. .. ............ oAil)C-

............s. P8.1 (m,ArIool ~I :::::WNW ............... (b)

soIroIlItIrt R"itlAtto-ttA--

MYDlItAI, (~(rt-)

(Coor.0)Utl,, Rlo~ ................N~M-... .......... (Looo,lOklotorr,,,Oty roil-)

IF Rilli" ............. ......A—,So.

.. ................ ~ (-V).... .... .....L. AN". =W) w~) ............pt,ol ... Ito-) . ..... ....polIto, . ................ (Q,No,)

ullUl FlAlooco I ........... (SIIl (I) bIllow) ............SlItt. IIIIIIl - - fw-wt-) - - ... -

c,. ......................P.- R. ...........................................o- ....................

ftpoIlt~ I ............. .............C,woll_ Wollestolo 61, ~ ...IFI, FICA,"T,AlAt- to~-,t of G-..wO.w oo. ol -V. ............CIIArl, C~,-t I~E-la-- 1. IlFo

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

.............................. ......................... ::::::: i::

VIVO ToIIII

Iz 18

--P-(coVIFiw

by III

CIFIVIl

(8) (9) (10) (") (12) (13) (14) (16) (18) (IT)

U .7 2111,131 1$,*,- S.-IIN 3M5.37"1,011, 411.6411 2.110,545 UI,M W"O

26 i'm 16.116 37 211

,5,711 "'m 16.321 30, 3.851

;39 Ml 5,976 266,11119 142.129 12CM92524 1,5115 138,1D, IS'.3 IS.M77, 5~~ 112 128~M 3%

6.7SI ..I

:317's 71I..m

==.I

VS1M,

M

'IS"

M 2W 17.1" ',wS_ 127.812 110..~4518.179 788 39,015 29.565 4,MW.730 31. li'm 5.W7 N-,- 3MI.121 MAII, -~TM "SM 412.949 20.497 M~

61 2M 6.772 7W.172 M.W .2,-107N ~.526 7M.938 147.5114 MIN

SSS 231 112.791 M,~17NS 21:3'55 M7.759 45.613 3.-971%

22,215 9(5 ".112 41 11M, MIN W1.381

..nili

W&I 4,221 SW.%I W.970 17.8%5".. Z517 128.2X 3.M 3,OMX666 1.269 U.27891,773 3,295 1,447.246 106.M7 3M28,920 2AI3 23.64A 181 1 w

403SO 12,911 4W,Ug 155.019 69.5MU.281 12.;40 4,18ING MI1.7 79,6811

8, 0 m 1. 1..1.3. I.OlMIM 33N .615 S." 66,7071.1 4:M 21 6 SM SIMI .,U2Im SM 2.570 MEIN 37I,S(`, VN,"2

11631151

353.809 225,21. 213,U2MJ87 1,770 1.321.172 755,M 115M25 212 W.399 7'am 7,776

VVZ 31,602 ZM.040 "S." .1616.15,466 2.591 12.Wl 'to 66

MIWIm "'0, m 178.242 172.MS

100 7M 1:656 58239 769 -,5:wl 414 9,110 76 65W 876

,19 327.518 19I'M am

W:l 53 1:mg 75.351 3,655 1437:111 W. l"'U8 72,nl

.07 4,

2. M. 55.066 24702"0, ; 2.1U10 M,5NI 1.,178 136,WM_ ~12 340.M

15.m 239 23,798 1,755 1,752M 026 13.Ul 2.7W,W4 K374 32,M

15.025 7w 87,496 124,~11im.80I Sul 1,2511154 91.597 Z

SJ:7 ~.74111711 M7~3~14 2."1" = 71.562 475 91

M:11 34112:31" 'S.". .1.61 6XI 255 I.M 11 25, 93

S2,710 I'm 287.9W 2,013 I'MMAT ZT55 M MAN 572,8911

221 66 . 24 55 5'7:,

", ~ 317 m

11,1711876

w '9132 4..'771 4~25517,496 1.014 15,324 1.1 139

1., 78 w 24 7 162 499I" IN17 MIM 4:'I'n I'mM114 ~ 23

59 867 1,922 i'm 4D.W 29.67868 WO 2.3 15R 81 w1.531 4~18 W!537 N 21

4mlln l.2N 273 518.315 :169,3.92,IM 3:14' 229 5117 62,479 14,77013,4101 4.1 2".604 21111042 MIM

m 1 228,551 219,972 219S7012,80 423 16.015 10 10

1120,311 3.MM 4`3SV 18.10 mInmil m"I m 2,37111

- - 2113.M 12 119

62,439 M,01 318 4N14.W 1 318

MA43 IA71 Z., 2M,521 l"p. m

"2

1

M1.4n 4" ~7.97.117 307 162WMI 0! 311

3.424 2416

47AM 1MW "In IV'17.5XI 13 W7 2

2,9261

1291 :7 1 3251 . 98 1

.,Na MAN a 926 1 N- TI,576 . 1 .

11111,740 "Im X_ Z03I- 166,m .1 456

26,242 17.= N W,I.AW 142,211 SIM SIX

212m,I .

IVO 4117..M 140

7,71. w.&M I'm 2,41`7 2,092 3

66U,175 137,418 1 w

7n 32DI 2433 - 63

3,M 3,901 249 Bit143

7.137 K201 ISIS 4222.871 MRS 1.120 m

. IS5.791 472 28241,4010 ns. = Z'VI,

I.W~ 1 SO 871M 467 2.62 19 0

3155213N

13.142 19M 4 w- 1 S2

1,615 - W416,11 423,4110 01 3.340

4~- 49

Zm I'M 2 1193 m w

35,&53 125,519 107 1,0201,669 . 201430 27,991 25 m

SO21

25,616 =212 SM W5an, SIM 9 403

M.17IS219,917. S 7

10

31.-

4

46.333

M."it Z,M 2.281.813 762.131 !01.m 6".w 457.731 614 2.005U 1-1. ......... I .to) F',,. ........... 4W 2. 11'.6 1.328 IN 342,720 34,475 273,211V W2, 11011- Y lk u9m, 2SAV 1.438910 2.269 125,924 MW 14,W 1 1,260(t)Otto. ................ . M1.761 8,143 ~~543~41 1,369 26,242 jWM5 M 1,117

m . ........ V705 Sew 23031'

Q"I

Ill SM2,01,- I'M(9 1 . . .............. 4M,M 23,722 ~1,122.5311 175.97, 32.624 2&4v 2,624, 119 1..15

Still-plolol,-;

I _.)

UtIl- Sol FI ~ ..... ..........

-R.9W ... .................. .... .......

Ato... ~. (1) W-)A,- ... . ~ .-)I—. . ::.: .. ...... ...

B."No. (V-,t).-d-.-

F-t- -.1........ ....

. . C.) ...........-) ............

Z (.IP,lool

............ ..S.ItIll P.O.

AllA . .......S-110. _ ...........Co.

~-h Cooill.) ..........Ill— Cold .): ............

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

Nol .. -),. ~~.lR.0- ~: ~: ~ ~::: ~ :.1 1 .

C --11 . ...... S. (d) .1-1(d)

L.-H. ..... K-Mky)..pAlAt-0 Ill.)

twl'lA-- (ScOhD1k1W)_.__C..W- ............ (~ (b) .1..). .. ........D.. ..- ............ (1-Il ~ ~ ~~ ........ ....I.Vo ..... ............. III- D.kot.)-A" Mll0_.

St. P.., ...........sollN1.1o ............. (F) A

...........=M%.) ...............

A-- S.(I) I-) ...........C(wy--N) ..................

Z., : ........ ........ ~C`O*W`a)d`o),I'll.. .........

UM. ~.k (I.-) ...... ...... ....4-0- ~.... ....... ~ ~Ok- Oty (Okl-m)._...

. I ........ (IKI-)110- R.O.A-q,So. p I-)H (mo"IIII)llollo,It, (t-lA_t).L. A,.I.. .11, (SI`. 0) - IP- .. ~~ (Ma-)_P-d . . .....R- _ . ......... (N-.). .....Solt "k. 01, ......... ...SAllFII.-- (SIl,Stoot. (W_ N-) .......

CIIFII. 6-.-., ........... ..P-.R. .... .........Oth,

F- I.0IIl .. ..... ......... .... ......G-1., --tlp .11. 1. 1— "CA C-11IT11t,,fi1lW to G-t 01 GuAlt., _ .... ..........WIll,". F-.1 Flo,lilo, ............. ....Ool to, E-- I., -ocm-o F.o.. I. NA. .................. . ..... ..PIM-1 E*ctio, P~ -1 ........... .....E--C- , .. ...Ot.-__ ~ .... .............. .. ...

Ioil,o,l ..- -- looIl,

Ctl 1-1. .............,I.. .................pW~ Y- __ _ ~

(d) Oh.. .................... ..........

I..-To., Moi~ by

otolol

(IB) (Is) IN)

I.p_I— lc=by,

W) (a)

211,- ..". IM31135.972 12.686 U1,27111 I.J.

129 -"1

3810 10 20

2 WI 2,Nl 2 12,9602,(Z9 2.659 92

20,267 M.267 107,3721

17 1 269.936 9,7.S 186 7

"'7

nN3 2 505

19,003 V.VVI 13,- W-13.267 5.WI S2. 15 7N2,21 2 2n (2,021

Ill'17

,w

v 3, ":2151.596 I'Sm

2C213 2,72. 6.1164 265,0392,396 2.3n W.7"1

3, 1 143

.1518 W,

3.139 3,139 102.7353 78

2.7W 2,5W lID62,813

18,5186,336 4.0a U3. IMISIV

127 - 427 M.6181,890 1.693 2N 0,6212.- 2.105 5119 Q.525

1414 14,3 3 297

597,293 3,111 Szsm

51. 2,379 2,814 24328 2%

2 2 a56 555 10 1561011

- IN 34UI.;N 55' 553

1N

2W 2801

N."O.1 1 27,931

3,453 3,073 3711 WAU1 1 2

2,M 2,056 12 SO.23612419

2 2 91:01026

30 - 3m 211,017 1,017 1,616

17,-,- 5.826 120,6641

I I14 14 11

IN 10ii-

2419 17

212

SI82 ZU5 2.W7 11,.3S2

2a~ 240 4~ 1~:Il

Q12

75124,181 1 591 122.49~ M.814

2,393 .5 1,40 1!1,315

121.w 4,W7 125.1265,195 2,370 2,616

32.9512 9,745 221,-2,325 1,693 02

9~2,071 2,M 14

107.29V

7.M7

2.1122,112 13.5m

61.11M48.,11114.14240,N5

11~156 MI.,

7iM

102,66!

2.083 Motto 4~

2.7. 1.9.024W596

20 S.S632,738 59.77A

j;. 28'213

m JILIN21

M2'1231

2at 185 us

3 W21 -10

29.827.911

24"2 M,M

1.783 45.26B124.189KNA.

1.,0;35

U12 IM,1703

23 e9l ",5972,717

1.3 to,~,3

5i1,502 M.261

M2 .,925

110M90,174

IMM67,23962.7"

141,276

&M202

7.607

1.753

(M)

105.1m27,936

107.299.7.11962,613

IM,251

(W)

3'24641

1.242

54 Table 1-Continued Table I.-Continued 55(in thousands of dollars) (in thousands of dollars)

U.- SIIIII,. -1 ....................

............13- 'U-)Eu., ................... (il-)~.d- u,,,n-cUt)Al-

~Wryla. I D C.)

p l."PlIa .................P=gh . . ........ 1. ~Rllll-ol Mill I.) ................

Tc,tIl

(25)

'11",s3

4339

31i1 ze,

"1.920

271

688,74:

RW ............................... -:.:: ~: I.M.381All .. ........ ........... ~. (~qi.) .... ..... .... 103,159&-g- ., . (Alat-) .............cd=. .................... (S~

3,971

Gr.I.

................. Uro-) 1,222,628J- . =- 1) 240J-vi~; F-) ...... .......... "'%Na-Ill . . ................... na,,,,~) - .......... 3.222

AIM ......................... .........C M-1 . .................. ::: : :G. . ................... (SI,, (d) -

,

N,t-t (-,n .. ~ ..........

392,691

IseI

I-) ................. W,L-1. (K-ky) 391 NI

. ................. qsq~::~: 159

A.. .............. .... ...........

. . . .............. ... ............F.rw . .................... (N.. CAll-)

............. .at ~~: .................... Al-i) ................s...' ............S,r,,ftW ..................

A-t .. . ........

. ......................-1. R-

o- oty . ............w~-

A-11. .................. ..........

. ....................L. Ang.P- ." :::: i

~w

pwl". ...........(~-)(Xw.) . .........

R~ ............... (Nll,,aU) ..........SO lsk, Oly ~-h) ...................Sll,,1-0 SI* (I) I-)swftw (w

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

ot.. .............................. ...... ............

F-I .... .............................G~-,~-V l,s, ~It- RCA -ift -- ...Tr- 1, G-- ol G. ................. :

-.' I - ................ .C.-, -10, E--1- -1- .~, F.- " N . . ...........

II, d. .1 E~- F. .. ....................................

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

~bg)

y(d) o",. ..........

22820,

13%Ass

12,301236

T--

C,P-.,

(26)

mat",I.

445

1,322.MG98.028

".am4218,

31816

uju

1412~~

3

16,611

3 70

an

212&M3

I,-

457I

3813661893

219

219

M.A.

T-

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

U1JW SIIIII, . .. .... . .... ........ 6,487.421 4.214.147 101.402 suns "Onees 251.2010 IMM NO". 1.1.05391.797 122,613 1.05 I's,sal MAU 11.- -.052

Al., ~S- (C) 5,sas 4.903 99312

244 1623 47..'.) - .. .......... 10,402 6.878 216 627 320 2~301 2,252 3aB- (M-1-11) M2.2 39.2W 2W 5. 1.777 169 8,210 1,.17 99a-, . . .... (SI,I (c) .. ........ 18M 13,795 o9 820 2616 2 717 2'oll 17BrIo ... .. .. .. .... 1. (a" W ........... 17,997 22,.8 2DO 19,398 3,911 17 1,492 8.~ 149. ..... .............. 3,0W Z933 33 56 16 - as us m

H-ld ... ........ ..... (~-tlc.t) , .......... 176193 17.275 222 85 856 7,137 log7a 51,726 4.n4 III).. ....... ... (c) .1m) ........... 72~614 11,213 12 411,146 5057 766 7~419 3.5 37

'IN 2.,2, 119 271 "w 1,185is

I-d) 3.1. m 19 109 1.- se 1,M2 Is..... . .... ............. ... ses.041 513,112 210,271 03.027 14111.540 Us" 1.555 a.7.7 aA D C 89,727 37.saD 515 48.673 741 '.77o 467 s'- so(Nm J-q) 77.595 45361 5,201 7,e9o 14 781 eso 3.510 lo.669 241PM-1ph. ,, I M 763 U5,685 1.126 21.622 118,5n 1G,763 1.722 12.024

..

P-.'p ~==-= MAN 2..009 10.117 4,611 IO,W3 52.92o 237 25,084 163...... ........ 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~ I........... I.... .I I =11,259 152.098 1.123 9'm 42,437 15,114 sju 18,435 1.045(G-gi.) ....... ....... 36.5W 23 M2 155 751 11,487 25 2% 11,187 2U

51-1- 37,356 15 In 6 1.957 lo,995 7.898 1.066 7.m 151c-. ..... ..... (a-, c.'N-) . .... .. 23.274 21,526 a 276 MI is 753

1141

G, - . .. . .(140,11, ~-M) 58,95, 191334 63 2,167 7.250 63 74 13:MN 264. . .... ........... (m--I) . . ....... 13,123 9,495 28 1.86, 9,11 97 411o ..971 216

rb,,d,) .. .. .......... 28,486 18,M ss8 1.162 INT .316 3.615 15.067-0 - ... ....... 28,501 13.m 3D, 1.5% 5.687 6,M7 218 0364 Is,

R.. .......... ........... .. 1.351.07 41111=2 $.'Is W`09 421,1154 U.743 .1209 07,042"1C 33.1.9 17,614 56 "Al 3.2W 7,561 143 6,700 'a

c- (S. (d) 676,452 229.117 2,307 378.698 51301 14676 351 26,w 192(-h-) 424.196 es.852 595 -5.W7 '35173 7w 3'o76 9.893

I-p- 72,4sg 311,134 so 2.064, Z5.9"a 3516 2~737 14,483 M7L-Ift A-Ckyi . ........ 129,989 88.89 5.052 in I= 31,305 as 9,472 NP.1,-' (W.Wg."') 15,392 3,02 12 177 1,276 10.955 4,3 2,olo 52

All A"- 944,117"

1.2 9j93 '.,aN 211,..2 "As 111.2. WIn I.=A-- D.k..) .......... 900 6407 31 a 2278 277 Be 2," 57Chi,,,,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 a,F,,,, (N-W-) Xo 34V 19 201 605 20 2.698M-I-k ............. ....M--) 93.698 68.637 266 Me 22.808 49 1.252 li'm

'69o n

. ...... 15.8341 elm 20D 20 Mal 5.uo 266 5'801 soS L. ................ (M-1) ...... .. ..... 96.3n GOABD 1,313 3,187 Me 22,651 335 14.118 11a, ftO ........... .... ~ . . ~ %525 so- 1,335 1133 7JM 11 9,&6 s.m

asg~'Nfi.ld:~:: ~:::( "A")

... -'- 42.376 35,331, 37 .518 61865 281 37D 7,701 I'D~'R" ............. .. .. 1.002,9111 11781.46. .151. I'm 45,215 Is.- am 1151- z"

Al. ... ........... .... (N-M..ic.) . 15.704 14,8121

N 184 660 5 4.695 151

c-11 . .............. ...... (aklI (0 Will.) 994,252 N3,ull 32.976 96 ..am 4,015 8,761 ..652 W, ............ ..... my"'g) 28,673 27,- 26 12 111 I.o53 76 3,85D 78Will, ....... ...... (~ (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 240U111, ~k (A-, ~ .......... ... 3.631 32,M 29 59 2467 1n I B!" 6.927 21oN~O-.. (L--) . ......... 131. 16,849 479 22 2,60K) 1N .7.072 8.w 252o-c - ...... ...... (lNI-) . .......... - .5.31, 321.609 8.543 57 so's 5.2e7 259 Mass 322WI-. ... .......... . .... (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-

z!,*A-1g. ........ ...... AI..) 258 1 3 12 17. 2 398 16P..) ............ ON 2.1331 128 no 7 1,- 4,= 147

H. . ... ... .. .......... 3,937 1,227 1 31 626 2 ON 43 3.06, ill11- ....... ...... 1,717 1.271 313 96 37 ul 32-A~ ... .......... ..... .......... 446.00D We.- ".95, 32~959 29.329 No 6,708 26,318 711P- ~A-) l.MI 2.9sl 141 .'jas 1 43 4,1se

27o

P-.- on"') a's. 1,4611 as 453 57.938 4 712 - 7.658 2.R.. ................. ..... (N-) 2..91 2,361 3 2D 47 w 3.om 131Sell ulk, CIty..... ~ . . ...... (Ulah) .. 15,672 6.21, .1 125 765 3,519 5.Ml 8.25a 113S., F-- (SI. (1) .1-) . 25~.70a 231,69D 6745 2.210 7.68c, Ivo 1.70 U 316 ms.- ............ 116,512 14,247 43 no, 99.697 1,283 989 6,256 232........... IM2 1 so as 5.

oft, ..... ... .... .... 1812 I'm 4~ 332- 22' 59u,,cswt:IIllll:F-I t'. d-W ..................

w'. .. ...... .. ..... ..c=o acc- 1,0- ---1.11wd I-, F- -AII. ................. ....

P'-IlllE-I- I................

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

T.-.----

f. C-11- . .......... 700,708 6N536 II'M 35 169 37,00D 026 6,411 all -. ... . ..... ... 515,827 323.713 6,116 .6" 10,923 lo,wo 31503 320

65,463d~ IIN4:17 52.559 272 11.896 816 1,872 15,M7 30,601 246.731 2,363 m.189 5`156, n.26D IN 32'w, 350

'..Y.... 6,l3.661 408.69, IIM2 2G.23I 128,528 63,70 .No 37'108 277(1) T... .............. I.N5.788 1,26a.081 43,91% in. OD13s" 4J26 am 77.314 1.052

Table l.-Continued(In thousands of dollars)

Table I.-Continued(in thousands of dollars)

57

I (S_hiie~ by -.0.IhOA~eil 1. ~ ; ICIO1. W,

Iew.)

U_ Ste,iih,l . ... . ......,_ .".o ................ . ............A

ICehy . ........ ......... (Sih, (i,) C-) . .....

A.. ................... ..............

SOe Deh-)

Co-h-)While-

.......

'ih,

11-hRh..

AD C)

P led .. ...... .. ... .. (~ (Or b.-) .... .........g. .............. ........... ~ ,

WInIgh. ...... ..... ...........ft,-iiIi R191oih

*:::

A I.. ..... .. ........ ..-n, ............Col.- SoWhC-hA)..

(.hj, C.'oh.)..........

,-1 R,& . ....................C-- I ............ (~ (d) CO-)C=. ................... (sihe (o) W-)DIhCh

... ...........Lo-OW .... ............... (K-ml,y)P-..." . I VI'vi,m) . : ::::: ~

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

C..,.- S. (b) Ce-)--

.h-)

F,,W .......... ............ (N,hh D,k,W)

0-S .. ...... ..........S PAW ....... ........Ch,V. ...... ........... (Sh, (b)U.. eg. ....... ... .................Al-o.. ................ (- ...ico) ..........Amon . .............. (See (f) -)

C""""'

(liqohohii)

Littli, RolkNih, 0-m..... (Loisiam) ..........Oklahom City ............... (OKI,h-)ft.hh . ..... ........ ...OW- Flegio,, ........ .............

............... ............ .. .................... (-.h)L.AhCi, .. ................. (Se,, (a)

P=,, ............ . .................... C. ...........Seh L". city .... . ......... (U-)SehFh.- I .............. ~(SeA (A)Seehl. ...................... (W-gloh)~01_ .0.. .............~- R- ..............................

F- Opo-i. ...................... ...........Geeho~-. 61. hd-- FICA h.Th.- 1. 0-h-1 of G,ohnW"hh,0o` W" 01 Fed- O"Poy'lei,Cleohne I~ E... lCoOli 1..d .- F.- Ano h.~ ............. ..........,--I Eleohoh Iono ..........

Chh., ..................................

1-1. 1.-ho. -.~

C "I. ...........el 11 ..............NNih,,

(d) 0.0(.)pohneh"NeitI.. ...........

IIIIA11iih, ....Cio.,Cohl.

,_Hhe

Neeel hd

To.,

h1ki,oill- .--

T--C- -0- Thhh-ie..~ Ch-o' helt`oh~ CIOC', .

- W, Ihhh,i PIDPwtyby W, leolChelie by 0

W) (0) W)

3A.W 512,71. ..301198 97,495 "'9113'"1

1U7.649 IN= 13.4911 m

IW 732 310 1 21i

1 27 400 3 16n

2.061"12M ,I'D . .11 45 W 1,472

1 X6 23976 - 2.936 S Iin Cv. 1,177 4,190 591 AS

23 585 1 ,'.

0 3-IN 3,718 25,117 5;4' 1,,

M,M0

An 2.957 204 SM 127V 2,7~ 10,51557 2,ES3 12, 2A 2110 .7 783

S..2 "M..'"

1.,06; 131A,1 n

,

M`S~ In Mw

"AN .5 3M

21584 7."1

21A ~ 312 116r543 M 0 4.726.0 11.570 :"IC 45V2

112

5111,531 23390 193,740 4.525 1i 11173W 8.426 31408 V.014 271 16 16

"12,206

199 - Q

3,111 ... 'S.512 '"A" An .1 181"Dii nju.7

11 1128, !OD KOSS M3,451 2,26~ 917

76, .;A. ",417 a MgIn46

4:!. ~73 1813W1 ':2'1595 12:40 13 4 22.IN 6551

0 1650 4,793 M 3,- 4'13"

11HUN iS.367 205.174 15,35 5.215

~7A ~. I" 7UN ~ .7 50,118 727713,0

1.01 aj M13 40,537 1. 1. 3,03 41 4.945562 W 22,01 13 In 1.368

113

.5M 21~:l M5 114 M.231 5,

na

.17 72259 Min

4"7 3446

.7 13,In

M:v Mmi 311 W27' 9107 56 092 2.859 270 28

3 1745 8.U"i 6,328 114 5ii,00

C`51 1,3410 19,W 2SM

72 1:'17"1-.3.

!,13 476AS 25 IN 321.642 4.109 225.Mi3 ID'SM 8.699267 %1M 2JU

113M,

NNI

~917 530W SS

" Ilow ME. 18,431 1,282 9 2.

37.,

273 win M.Ow 117 - 421.212 12:m M7.288 107.908 190,- 1731 13,2M5,S 8,

U9 118.1 2.M 93,298 4.262 ST71M 15,43 5~992 -

211.6121

e, 117 2,UZ431 0.976 25517" 4,129 elm2DO 4:1

Ilu

In 250 - lit,

5 269M

IS1,210,770 922 42 T M SW

13, 36,1 4AM11

W 31 .,

389 SMAW 12,209 1. A72 2,878 4All, N.914 47.679 M,- M'i A5"

251A

4"27:~ 1 1,

QWe 3 26

1.3M 7293 4.'23

13111

N6 IN-1 439

1.711.437 :~20 40 2,120

'50OZ

InJ67 ..045 W - 20III

,.399 INS I nzn, IN. IZO43 1811"

76Z17 12:~l 1,976 5.652 409 34M

4243~

4601M

131115 2

,8Xt 3,

US 2-14, - 2

"'Al n7 13 IN 1,4416

ilit7 W1:1,'M 270AN

1, .1127 n7

A79? On,

3.1`0 4~~11 0 411 17AN

677 lo". 1161 1,2M 14! I'm

383 25n 1 AS 702IV

7 2:3915 1WI " 3 23 IN ~71

1,051"

61 112,~W BAMO 2. 97 2.271 2,463so,

5437 U 247 NAM SM7 I,U6 266

1 All .11" 12.7311 5,2722

1 57 28,145 12,7388,518

5,270

3.150 AS DOW M2.!V lN,"l lW.C9`1.039 T4 336AW U.10 2M.092

2.10 13 D74 241.S17 1XIM7 .218I

,100 SO AS, 277.315 51.360 I'm

1,871 3, 960 258.05S 50,158 1,4316,575 VAN 1,737.171 i3jal 117,007

11,7370 8,113

13 lV 1,=1,434

W 558S~ CAS

M.h.-_Ohoi- `,il.1-gie

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

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

B oh .. ...........8-1. ................B-. .......... .. ........

..........

P_. NO,i, H11Ih,,) .P,W- (11 " ") ...........

he Ah wCioh

N-11, (Nm J11my)

A

sohilthee. .......... ..... ...Allen.

Coh-M ....... . (So~h CiiIol,na)Go -o ............... ~h

ja-.......... (.oholooool)

C-od Rgloh ................c1ho.h.h. ._ ........ .... isill; MCl-W. ............... . (S,h,(o)CA1M) ...........D.h. _ ............. rwhwh)hhh-",O ..... .. ... ....~1-) .Looloh1lA ....... .......... . --ky) ...........ft-g V".-)hiRee""A-- DC-go.

...........10 ..........

FAC, I- O,k-.keir f.-h) .............Ohie... (N-) .............St. -.1 ..................... .. ............St. PAO_. ... .............. (M,n,AOot,) .. ............'ohog.1d (Swo) _M).

P,.C .. .. ...... .............

S- (1)chemh, rw~"g)D.11A, .............. ........ (Sm (1)Dihn .. .............. _ (C--)- RKk ................... (-C-)Nih,, OlA- _.. ............. (L,,,,m)OkLCW,C, City ............... jOk4W,W,chha . ~. ~ ~.. .......... ~.. i(ehlleiiW_0iCh ......................AmW .A .........

I'm ................. (Mohha.)Hoh I. .. ................. (I-1)Lm AN ......... .... WP- (..-)P-Ond' (C,".)

~N-UtOh)

Seh"Aho-,S.CI. ..... ............

Offhoii Owshoh. ...........poe", RM

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

FW-I ho ...... ....... .Ac- . .. ......

TO- WG-Oht 0Whh.ol ... ol Fooehil -pI.. ...... .............C.'"-.. I., E.- tio-hoh'.

.-At, Foh. - N.. ........................PIM-1 ElKlion F,Id ................... _ ..........-_I--C- 11 ............ ................Dole, -~ ................ ................ .........

(45)

"A3!

22

I-,. le, ----

(.) Uhl-(b) 111-(C) Ne,,, Y11(d) Ohio(A) P-Miin . ........(1) 1... .. ~ ............

.."h" Co.U.-- heW-11

(47) W) (49) (N) rs') (52)

0-

(40)

"CIO 10,972 -X2 `711.3 U.2ft 3,133.521 3.011.5I A 22.419 412 ... SSWI AV.533

1..$2,

211 297 5822

M9313 76 11 .2.00759 '..W 1.mg 11,764

15' 219 16.4135 7 .75351

92646

.5 78 M"1.2 in 1.10

2.

63990 8,14

96 16,521 42,An

5113137 1,83

1310 8 13,

1

.2ei.

.5 536 .1,413 wji.4 4 80 IAW 5.74a .03

AS 191 I~m 191538 182,596

1W2 123 3731 3.882 245.952

11 1.114 41"M 'a' 6'9

-87 28319

Ain 51310 $21 M.761

2 1:047 45 me M2 37.352"1 0,341 .1016 5.345 15,245 . .937M4

A7 1M2 971 .1676 25.5M

So 4:425 73 in C8~ -23.1165138 1.:211

40 1M .. 'MTO 201 1.37' .52 .,,In91 2.357 48 42 1,03 533

12:.211 1,900 2.1 1~094'a'21.

S 511N 504

a07 :37,342

11 31.910 743 elm US.627 158.0427, A.271 149 .6 1.274 3 7N

-267 9,062 IN 1,637 MI,365 20 905im 11,020 '71 2AU 15,~ .11,W5102 7,932 .14 1~358 4,419

4:'33 3,230 39 M 49m .22 MI7 1,482 U 84 217 ZION

W 45.1157 5294 8,4U Qm 3I.S"

IOn

I A 'I -1281 ,

Gio 2,179 3.891 11.200 10I.Q0A

111'Ila 211 647 .1.?U

I :247 n

22"I'D

2. 6772 03 912 9,072 52394 2.9311 SO M An .?I1a 6.512 I.U6 I.Cn 12,074 W,~0

a0136 1,135 1.792 "IN 3

10 2n 1.11:02

I.., 32AlW 3,S2. 1,312 0m, 1.01.04

01 56 21 7.400 .7.51917; %15 .37 3.2M 1.153495 431,80216 ON 21 AS 44~95` l'S'AC,97 101N 2,362 1,414 M8.U3 t1SI,256

5~ 33~4111 257 W I.SM 1971MI

04 55 97 21,311 17577 3,59, 107 W, 37,451 6.0112

M 1126 1.2116 652.419 561,589

1 2,D39 73 227 W,098W.'"sju 0.910 2.9U .,Tn '01.630 372.3 2

14 317 11775 ...

1012 H 2n M

1.2. 35 50 2.0. 3,97.An 115 173 "1 .13,

:.71 1.,10311 9; 94 191.M29 19 "1'15' :643 4.W

7 5,.5 193 245 187 .109,3110,142 67, 57 ne 209 -79

-nI

r-31

-3U

3:'20 1 "981at,

2.1. 3W NS IN59, 4,672 144 65D 1.653 .10.051

a 10 10 .1. -13,91S12 3

-CA,

1 79,31

-14,010

37.8X

73

3410

_6

24 21111'

I SW, 95.283 47A,Q7'M

lii~n32:2515 "'. 16,107 N.360

95v n5 17:1 5 M8 7.,143

.112 ~.1:333 315 2353 205,639 243,66D17 11917 169 5,269 185,501 IWMA

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

....................... ~AMIIIQS 612,375.rT3.......... ............. 111.7.816 n,379.610

b,;bnnzlnl~ ix~nwcorne h,................

an-abloarobbyrobablon, .-I ...........hal............................ ...... . .. I I ............ .............. 61.248 1!9 M,469,=

Ila, Oti,alol Aol FICA I . ............... ........... ..... ..... ................................... .......... 297,M,1n W.!!455,U6R onartabriamint,-11 ........... . ................... .............. ................................................ Z- .93 2.SNI %IUnarnab"arn, -hr.. nr .. .. ~ ............ ................... . ..................................... zm.m 3W9000

.............. .. I................ 11 1. .. .. I . ................. ............ S.W.176 4,20.247bor . ................ .................... ....... ........... ".17 1111110 MAN

W. aboar". "W"a "I"m H.61II'm..................... ........ S"'A2. S,7..,.

Dalb. in tota'.. ...................................... ........... I ~. 1-1 - 1 3,945,034 3,N5,377hilon. (coh-ool to, C..-. har. ... .d-1.) ............. ............................ 696.M7 M,314Db,h-, 51 O,W bar .19.1. or- g,.n--ii .. . ....... 3,212,731 3,289.366Rechrob-, w an,.-Voof g- ............. .......... ......bbob

~a'robaAactinina of Spinal. $25, 11W. $1 DD. or, tnaeo, ............ .......... 1.1..Ibara:- - 20,M bW gahons, $1 10 W yraa~ -1. ........... ................ 4 2X M Proof gairona or- IQ21) pa,r noor - .. ............ :.. , .

.Uhl boale, orrolleal bona, mnia. .. a-), S. bar ". I .. ....... .. 15,2.W 16,7112man-ra-. Obbbrad abno"-..

-)11255 ban

.. ..................... 1,224

0 Who. W ba, nah_ .3 1262

Still, or conaanalara oborrf-rant, $22 eaonSon"es, -,a . ino..................................... .. .............................. 62 203winew. III .................... ............. I. I. ... I I ....... ... is"" 211=I.-. (.baaFIW in, C-loah, hin.- Aaa ............................ .... I ......... ... x= 37.179OF-.. (sra,arhaa, 17 C,nbl, 67 -ol. S2 25 bar ahha I;Iloo; thall kh1p Innes. M 40; ibigraially 162.5i55 174,314'arborIont

n., $2 10; coadial., 51.92) ................. -

ba- Laboa, -1 .. ..................................................... ....................... ... ..."nobarb. (For .1. c-rai .1. ... . borraral I. ~.. .......................................................... 36.5"~rc. 39';~t barrar e 31 9.11 . ........ ................ .............. ............. . 1,467.07 1.508,543Co- honin

Lin, than SOO .-W.Wban ........... .................... ............... I I501 banali, or- 311.- I,................. ............ .................................................... to 9

Rlialabillaral 1,907 I'm$2 . .. 1114.~ - -In) ..... ..... .............

lorbinial. ba-a,-, $123 .1 Ina, ........ ................. ............ ..... .............. ul wT w.. .. ............................. ............... .............. "A"5517 "w. 'd

2. .... 4alman'............ ... Z454,8171 2 402,M7

I.An" (Crania B). IS 40 M It 6 112 MNS OV SI bal thCnArand hIl to2W4 fincinami & fraction bmani

Paphy,,anni ..........ciolahi 1-1. ..::. i: .................. 3111'J"Ils

L-m- 'I'Dan" .................... IS - 31no-1-111235MlpI,tha~aiaFF,8112bahoant ............. 31 'M Z13166a

Inbb: ,..-banS2~2SI -t sn 34W 4775Shan 75---no p:::::: q I .

112 :m

phapaninhan Is .............................. ................. ........... 23 13hapoh. Whi, itianar.-- FqWh. by C.1-at. bb~) . ...... zoo~ 2,11!

ba=o., .................*:.::. ~:::: ~:::: ~ ~ ~::::: 1..57

illoannalbabina-Im

Ea- ana'a-Cahan-

?M1,4111 11.4111arra"A"a'a". ari aboaral low ..................... .................... ........... ................525,066 4,218,147="h" -h`.'.`lC7- ;I; ilabon : :: : :: : : ::::::: :::: - - ........ ... . ,L II .................. ......... 1041,11,17 1N .02T- (I,hohy or ai ba,t I robbar) -11 ,baa, I~ thold h,bloal:Trm, MgrniAIy t- 10 Cwts c~~ pb~hd. ob-, 5 cantral bar oIAW excaol Farrah- him (o-

than"- on 1a,;nIay -idab). I Fara par oobnd ...................................................... ........ m sn 05'.0I- t-, 10 -F, . ob. ........................ ...................................... .- ........ ............. M,720 26.870Thai ,Ibibb, 5 c- - bo,,ro ........... ..... ............. . ......................... ... ..... ............. . 22,N1 2D.314wt., -.4 .-" bo,II b.n,. .. Co.-,.1-oth" Ch- bod-, a... 7 -.1 Ir ............... ............ 30(1T-.. and In-a. chaaal.. bob.., -.. lo -ant ............ ........... I............ SGS'aht S531-Proa aW ax,araonab~ for I- IN brow. 8 mcmi ........... .................................... 223.721 2U,S52%tm ano -m, 10 mcant ...................... ................ .... ....... .......................... 17~5437 Mim=-, claah., ... 10 par- ................ ............................................................. W,418 m'"ono air.-, 11 bar- .................................................... ........................................ 5,mg 6,222In I- lot- ariah on-- -ana). 11 -nI ............................... '' ............ ..........

1.M~e,h aVgTmo!w 11 W,wt ... ................ .......... ........................................... . . ... ....

2.3S

:21'

k L

251.2Finn aconmy. swiY w wo 'SaOth.rn .............. .............. ..... '?

R I III. bar.. . ...... ..... -.. I I ~.... I I : :... ~.. I. *... ..*....' .*.*..* I........... SU.291 M.I.':~ :~t n10--cl

h pIm, 3 canna pa, ganion ............................. ............. .......................... 10,720 10.8ilaZ-hanar -ho -1 .- In. -Fa, 7 an. - gall. .- .............. ..................... ........ .... 35~920 3SQ6D- bro 1-j.1 araho, 1... 4 "Its bar pli (in .- 2 cant, - gallon) ................................ WAS, 512.716Ch- I, ............. ................................................................................................ .5hilboa,11havou. ad. W., lai ............. ............. ................................. ............................. 3M3.03 6.350.198...hanta thinno. 2 W.. h- .... ~. ~ ~ .................. ................. ............. - I.M2.193 1.117.iMlThanialortarm of pa,lom by air, 0 wmt ..~- ........................................................ t.272.003 1.565.071Tranitabata.. of pmmAy by an. 5 berFlI .. ... ............... ........................... .............................. n OD9 U,971Ura of international b-l botiam. $3 M, Mm, - ............................................ ................. 71.6a, 978%Conn-obarabla gionang on-aa. 111250 W dwoa W him, ............. .............................................. 4.867 UO.=ngt tar.u

-1 we 1,079WIi 2 9,121 10,972Liaa Inginanty -.1. ~ran 26.000 bohnnoa M Far 1~000 than, (amanalonantP-II,an, berhati ......................... ... ................................................................ 251,"3 263,272Um M. oh ~i nonaft, S25 - - In, an -.-1 2 cants W poonat on nont- anginar

o"""nna, 2,5130 gibano, or 3 1/2 can% bar ob,,rhi oh WM.ne ang,irn, hoInrao ... ......................... ......... 27.741 17.MF- banal. nor -baroonal .. ra ........................ .................... ................................... 728 1.093

E-1-1 b, I bant. boral 0 r-uh .................... SO.", 74,=

w:56 W.MIrrit onaharath,"b"

.......... 652Sell Faakm 5 barcent or, aad4balih' I"i ofiM,666 oi i*iii paFmht- foonaabon ...W ....................217 M.280

E- W=-,holonip 5 WWt on loonothion .... ............. ........ ............T-I, U- 10 -.1 - Iroati.r. 1- .1 45 000 or 2 112 -.1 ob hA-b;W

24 67

anional'a. ...... ... 11, ........................................... .................. I ................................. Iw 11Flk,r 0 =Y h.1'r1gion 11151-- at nna. 110 bar bay . to . -ann, on 55.M ...............................1.= 1,Ss?Fail.: bro bra.

bar- ol laboranthaaa obion, .... ................................ ............. 1.~ 976UrI-5 lblLhanna

.I

.I

. .in

.I..

I.,

.-1 1

..I.1.00b

..I

... 3 2. ....... ..... . . . .... ... ..... . ..... .EannoInia thbahathM'," I - .

................................................... ............ 2.050 2.8"E.- -b.-" a

-~ 6 pI,Fahn of ...m ibboana ............................. I ........ ............ m 69,Tw on ~dbhtrihb,," bob,'" ""'

. SO --h .' -ath-to. ..................................... ............. 116 'm"robabliad thanaachnab, 5 banobho .1 ron ...................... .... .............. ...... ............. 279 .2T. on a..- Fonarbontron. to an .-0 Inan. . .-nl .1 .... .. ........... ........... ................. IS mFIJI- 10 -1 harah, 5-- 0,

~-rng ol-Aanoy ....... ........................ ........ ............. 261 672T. on --I .-n. 6 ;a-, .1 a- in-l ................. .......... .. ......... 61 S3W-- $1 bal bray . to 15,000 25'11

F. a.

b "'i S' W bay - I. SS'ODOF-9 to N, therhant NbaW by -,.n 60,17 o, 6058, $10 bar,a'

lp to $5,000 306 711Far.. to '_L

""'I- $1.tob F1 I-. ............

Far.. 1. F-d. IR. $10 - lant, . .......................EKIF, rq.- -, hinin ............................................: ...........WaarallT.. 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

m Table 3--internal revenue collections by principal sources(in thousands of dollars)

Aww law,Tolial

TaideCon"wee", ladn"anal a-

and Empeopenne ft-- Al-we Tabatool"aned go.b..... b.- ed.Moan law-

(1) (2) (3) (4) (6) (a) m (a) (9) I'd)

'0.6,2 09 3, 25a,36 12.5"02 6.700 5~161

28 G76,V2 2.626,10 1.165 519 922,671 2421,-.......... .... i

a! '!'39,1 08 US 29,019.7m 9,676,4M U3 n7 024,365 779.291 2,-JQ 1,237.76D 1.4251m 2,147 111

........... 41,861.542 31:1711.11~ 10.17 410 aI,N7.781 2.381,U2 1149,345 2,255,V? 1,31C(),280 1.60.231 2,206,823a "J" 29 Sol

1.3,659, 84 2.476,113 796,538 2,210,607 1,321,875 1,771,= 2gW.9W

47~a`l 1.32a- I.8Zl6,OS3 2,-,NI38,167.- 28,007.659 10.15SI,351 151308 2.6N,575 706,227 2.219.202

50441.636 31 -.en 14,367,569 ~ N7.309 3,60.479 729,730 2,S46" 1,380.396 2:1 677 2.392,719910M.DC9.586 W:711:1121 1~:1661'1' 29 214~ 101 IAGI.26O $33 1.7 54aim S65162 2 U8.903 2.507.9M1 73 2

n 536,217 4,718,403 891 280 ':~953 I.S5. SO m 5.. 2 780, 25 ='911 2.1312.7811 2,647,492a. 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

':2119 665 935,267 2,742.Uo 571~213 2.855.016 2,0111,11M1955 W,208.02 49 934.826 18.-.720 3l,65q1OG I i:;S56 71 ~ 171:11 1 IS 14. 2 35XIM2 1.295 781 1 31;'l. 31 2,920,574 1.613,497 3 ISO 013 2,019,380'7 1 21:n ~522

W: 971 W SW: 25 530,W 39 029.772 7,580~522 2,973.19S 1.674,0503

761'aa2.243,856

45 ............... 7%978.47S 0 20 533.316 U.S68.559 Cowl 38 1,410,925 2,946461 1.~ 021 3.974,1M 2.166,6725151 79 797.973 58o"1.02'~' IN 744 8.853J44 1,M2,N2

'3:m ON 806,816 aoSam

':S`71

9114,800 67.125,126 =.179,414 193,714 4.735.129NO 1., 545.711 11,1U.Sm 20l

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 582'962 IN .0.839 71 SO WS 21,295,711 SO 61%594 12708,171 2,035,187 3,341.282 2,025,736 5,1 20,ah) 2:264,817

M'11:131 71:1 7~~ .4 1331

1U 52987,581 15.ODI 06 2.101.451 3.441.656 2,079,237 5 IDI~ 2.278.536

1954 ............... 260:2577.

1': 24 300:80 U.590.35l 17.002:1 2:41~6:303 3 111 2,052,S45 od.,S43 2274 3:1 2:~ .51965 ............... 114,434,6~14 79.792.016 26:131,334 53.660,663 17.104 532 72,634 2 148,591 6,418,115 453406

~1 ~41::Ilo 1 12.'W,~ 30.834.113 11 297,5S2 2C),21(1,113 3,093 S22 3,014378 2,073,956 5:,6713,374 5 a2,479 No1967 815 04 288 IN 34 911,1125 0.370,595 26,95 241 3,014 IDS 1.171721

2:107' 77 7 2.1%,ado"I

lm'WIM Z141:~ 29.896.5n 78. 52,N5 2aO&5N8 3.081.979 4,287.237 2 22:2' 1711:9'11

...............JB79'9

;35 775 052 M 337,646 S7,.O 406 33.068667'

5W M 4,555560 2,137,585S~Wl' I 2.N8 IN

1179 ............... 195,722,506906 ao:M:Sse M,036,M ID3.651,585 37.449,188 3:680,076 4,7463112 ZW0212I,

061 2.380.609

aIo~M7 3 ~'1~1:072 374 30~31%03 1DO.712,421 39,918,690 3,784,283 800.48 2 6. 799 3:179 IS~'1;21 1111 :17171543.714,001 5,489.951 '110001' .7.M73 1.%21

"' " "wl:732 U 925MS 101, 79.186 2:' 3

.11157.201 164,117,315 39 .5.309 12,

1 12,006 52.0111,71IS 4,975,862 5j"951395, S ~N

7'3."d I.

7.:1,1:1 - 126 62093,631 1.1M615 5,358 477 2 27%1 46: ~S SOI:6W 3~268:M2.254 I P 2:Q7 S.142,15" 3,172217

1975 . 293.822.726 42 14 097 No IS 437 70,140,809 ,m.m S.3508S, 2,315,090 5,516,611 O=

302:4111,192 .71 75~1 46,7112.956 Im.96on 71,202,853 5,W7.4W 42 722 2 487,1194 S486,106 3,855,9975 S2,7W 49:56'7,4U 9,809,905 31:1:S71 19 BS2,OOI 1,485,247 1':305611 622,821

1-43 M92No W7

W 139,117 21 7 G00090i, 1 755 63 86.076316 7:4215:4325 5.4066M 2:390,501 5,018.68 958 ONI27::81:5 N . 5 5 2399:776 3W 43 .289 65.380,145 213,0511 97.291:653 38 So .612,715 4W.913 6, 5,681 404563'10~412,185 .2

,PS1733 71,447,576 1571:175:17 5,519,074 5,617.924 2 IN. 17 7.057,612 3 U8,4505 37 2. ~12 049,874

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

-Transition quarter.

Footnotes tor Tables 1-3

eeii than sSad.Roh-

1. The remidde in RIO riaidue, andual ad hat had-are -W- burden or

"o"a- . obarq, wed-ohis-'""'"NawIn --b- haeodand, al Nothen wani. Far ...Va.

-hationg-

by weapid,ahl'o-bed- ... On.edy in.- auldiddeft.,--- awarnin, atPlot,--habi heIghborring bantem.

2. Ind- inaelated beadhade,-.1 whinnalgandurations.

3, 00lowtione 0 indhidual brobbare W W Orbital wandia ad-age. aarniaa. debabillry and hopftl ammurnerice, Rude, on-I-ployalent inaderm, (SECA) Safterty. and call, kam 0 nontionalI,.- ounia OhMal we nad- in--d whoon. withah"go, iunA,nbra. Mislaid, and harephal Ondw- doone (IFIC.)- ealariiiii land wagea Esheiah- eaboared.-I-I- I. in-CnIbAbil no-he he, and far ounitnOO, efloodallay " hi-pim ~--. an. NION, 1. de and,-(qaaah""

Goe"Connal) on page I I and NO aled In obberang"'. . I..--.and In

Table 3.

4. aw'-lanahe- .. a. bon. and- Fadearal ln~oure Controwbare, ~

NO "w- to G".and=- Sbande. IunburaO ol -- in Clual,and A,hiarlown So- NO aderaked M. NaAw nued hapantIa1. "-1. at I.-- 0-tione-Ower."

5. Inaluded fiduolaby hanbehe I. downfin,ea of $1.8 bibion.

6. Baganning ali hanowl their 1957"UM Stme, hatial

i.

judled 1. Ohnneed indinnawal renane-derefiened tothe Go,noranant 0 Gueen in aboore- Nan the pronnindre, ofPanic LivO WO, abohn,nial Au2. 1. law (64 Slat. 392). 1,, W-ju-l - to $19.2 loillion, tar low,

7. Indindare MI adjuall-ra of $11.5 nalion mile by the Dwoun-a- 0-Tl-,.

8, Thai dlwha is fteghwao to repon all raniabbeWW'-,-I- h taxpayan, heaking ouideft of tral area wanIned by

he linde"MI= SN,Akh, CNI.I.

a. ,derawah, ahade to ban., unal In. Federal T. D-

leh'Fl-D) eye- a. Included I.-In- -. adaeolandfor file whool in enich the l`TD int darcheal Hoehherr, imula,Pannowne, NO Mt cbedithed by Internal kiner- dadencts (nor byW. arbabbeed t aniCh lIcan, W dathhente relbi uno the~D balhant le= to the deaMrher's Mbility Um IN,W" filed.

10. R--. . adia W-U. an int--I-- On, N.twn goadone and manciang an- payrown, Niato,a-M-. unew One Federal In-- ~bhhhtudboh, Act (IFICA)~

11 D*aQhaa0habYtNMYw*0Iao0rhdn(rthm-tItMZoodannal Eleatied, U.p.Ign F a,. - cat-tard, NO

Ch~ Mainaer, in" do not affect WMM lability. T,aMm ofwhourne to dre1- 11:1- .-I-~ dows only no-

orawara, harre-0.1 didarlat wal reg -1 collector, alaft.

12. R anne-- teoper, .,w- oubdonon, da,-Xn thane lou F-. ION) and IO4OA an NN. "-1.NO oubrowl.

13. Ind-a.-diabowned to andai I-- -PuNt."...'rgin Nande no the N-1han, liwined habrad,

14. Arnbunti, of Inter Renhou, taum coolatedi an nuarn, Raw,producta bereadmad to the Illted a.,. or---a.wead rada hatunde, dreannedi and expanded) we idnNed intotne Theamur,

If "'I" RICO under onnin"M at "'7652(a)(3)

-0 5314a)(4) of 1. 1. rhal n..n- Code .1 1954, Th. or-.I- -anduded in -11 coll-b- -. (Tatfto I

bodugh 1)

15. Reamehed lareanno Janimi 1, law (P.L. 96-39).

16. ROIN to Too. 2- ohoporhante,

17. DORN III hat W to hotel beolluee the torel,holudoe ne,11-gible-. at ball-fion. ..a- -..Iy.

Is. Gorthand, ..an other, it.-, a-- paid Into Madetmenae,"t Clabouned 1.. -6. d.;H t- - return. lewl.

1980 dwa onemaky hirect annotan profit W ournbulft.

19. C.-- h.0-- ralle: Ell .1anuarr 1. 1 965,thrin325,000 of W inoo,- hanhial W of n pen,ant, net inable1,

S2S,000 cordwed nmml and! ourow Or 48 darbOru.N=0f In net newhe deri by

1 11- 11 eap".in ....I Ciloo -b- han, .1 b-. El.wholed to ;:q 1. 1968, . 10 Woont ON .... ...rW eadi

".(Pubho - ~). The auroha~r.ieodd

hwMat,D-wrtw3I,1969.byP.M,-9l-! ._:L he

~- 30.1970, by Pubba Lee, 91-172 .1. 5 Mr... annual role,

and then Under Via Tai Redualbor, Mn of 1975(P.L IiIi I--W 1075 raw-- ...,no- in~allowed to 1;W.OOO and wormil W noolaid to 20 banown anarat $25.000 W bould,lb, raccone. Tinalle hangle, anare Nowelby the Renwele atlemenent Act of 1975 (P.L 94464) to Auna30

.1976. tor 1976h.- at-damigned . miatherne - hath

lhaw~ TM beew h- and big--.Ounhowl-N-wl .InIm by Me To, Ralb,ni -1 If 1976(P.L W~%) a. Wough 1918 , 1. T. Realuction -Sell,PlIthownin- al III (P.L 9S-3D), Edeatem far W Ineare Mgftrn~

I "num, 1, 1979, -R.- Act .1 1078 (P.L.Nipailed a hea, late atruakire, gradeeted harn 17 dercient to 46parcand at aeout,le - whi Nerinaled the hanneig no,and- earage-

20. Indendual incone.- Rd- Ell-- ~nulbi 1, 1965. 1-Wild reaft Orlin, 14 percent to 70 par~ of handOe indarne. A1. parown, der a-- ebrenar,- 'ft..-w-a6t.Will Aiall 1, two. III, wahridubla, Nad a.-1. De-bar 31, IM. at Ine able --I to roubbo U. 91-WX ..- to - 30, 1970 (-1,, La. 91-111) .1 . 5 -- in,mW Rae,- thern decontowell. Imbibed $E~ wee 0 Ojbehown an net awmagpi up toIi har 1979 and 525.900 norlow.

21. R.I. a,-we: had- - 'whuat.-,--Q. h, a- at .-agatiold: PuM. 1.00 89-368~July 1, 1 967. 14 W W owthent; Pub4b LOO 91 .172, Iffectine,wry 1, ISM, 14 to 25 percent; 14 to 36 per-na WKISna Unu-

15, 1972.- Pube. 1-0. 92-178; 16 to 36 -.-. Intel" 30.1975, under, Puitac "m 9a-I 2 and W-1 111; 15 to

36 M I. anwainne JuhII 1. 1977. under Public I.Ina 95410; 15,a 39 -1 an.b. 1. 1979. leMir IFI,,bbc - 95~M. A aninteneal FICA at 12.26 -.. and, in~ anealibles and anegm, up 1. 1122,90) 1., owander tnear 1979 wal$25~900 tor 1950.

n. (;IhOade Or negulm hain-al -,- I. hN. of21.75 panallarl W ~lonftr yOam IOn NII I Ni Tw whibilea toanna"Ohn,05.63%)NOI

.1. darban of empas (hinted to larat 11,906.33 ofniontleyboundle, to, 1979 widl 112,155,33 lb, IM), Fartherankah. oil,- enholoyah, reanweentalree- .121.76 behownton -No p.rean .1 -,n--ne-ei In indalloon. .-Ploarawalit W boned quart" by the Railroad Rmk-t Boardad anandead - w"Plo,ene and an"Pla,hea W-- Mobeld---I..

23. Empliblerhe of me or hare, parimord, h, each of 20 oweral. -pald -g. or $l,W0 or- In anya-

quwl:r wed 3.4 PwCW on boubbli, pdh~ at ene,ea III, toS6,DDO. ThI3 Ia. Is realuaild by Cneaft IN unarnandlant odhtr~butional Mid to wates up to 2.7 pairlient ~ FUTA IN.

24. Ph to noory 1, 1977, inew. - hane -an --Wh-ohn 3 ;.wO an 1. law $5,00() .1 -1 -I.w a.- 0 .$60,000 1. 77 -na an dartion Inner $10IODO.OW;ght W. aw. On-'aartal, of th. eallow. .. abinalue, ba -,.arbardia; cineft ean a 630,DW) auninabon auti to & $3.000-u- I., on danaa. B"inhar, --q 1. 1977.the

waderan, nobbe far'"'.

and gifte Onee hearbaced by Ill.nNee at IN, gned"hal tra,b I a penownt W 70 pernownt. The ae".rate xmgdim announits were replaced by a mailed areat ofU;.50C, to M pinioned in- a 5 nOw dwW ISM." credit fm19 0 ..1 U2,100 tor 1980).

25. T-. an .-pr lNubanobbee and Wnt I-.n-h.Deamber 11. 1971. by III, Rwn,nu, Act of 1971.

26, Includes W9 wal 2 owi bar--. - undarrounal.menaid Call who ISO wall 2 pwown an eurna-wool coal.

21,Inc wile Menduent bahem an hane, Rhowledt by Pubic t.wisI,K 85~36, wal 59-44. AISD Includes legal and behadat

Wushadion-.1.1 he" -had!

26, Rate Nas nedualahl 1- 5 bencent to 4 mcard an "hwaq1, ID75. to 3 Mrc,nt an January 1. 1979 and to 2 donceirtdr, I, 19W (Noric LI,O 91~51 4),

I. Retail. allacli. J.. N. low, by the R-u. A&I of1978 (RIL. 951").

30. Tninnuare .1 -.he- gune, ar.n-wed fi--. N-NO, WC.. SihD0 *&Ch~ bardear, gune Orth adholaination andoun walrill. brown, and other -III hroad, of finalrele, $5 waah,0-pothonal Whe ... [,,W an abounuflu-ners, waboOte, m dearemIn a,..,- .. N. notalled In In. .-. .-h

31. R.I. ana. reduaied larn . arclan, to 2 deri na, donate.,Oaho Mphnul, ater SWulander 30.1977 (P.L. 95-600),

U1

Table 4-Amount of Internal revenue refunds Ini.luding Interest(in thousands of dollars)

unlee Suh.. W.... ~ ............. . .......... I......... ...--. R.. ....... .............. ............. ..... .... 6A.AlitApary S-W. ).. mas',

. . ....... 21olm........ .. m-) - :: ~ **................. .. (xuxsNcnxxNm,) .. - 1,275286

Bi .- ................... (Ne (,) -) - - 1,32DNIBuff.,. ................. is" W I-) ... ................ .1.353Buninitt on ................... .. (vermont .......... ............. BS597.- ,. ........................ (Conn-I-) .....................

BN 119m.-- s.W-) .. ....... ... ..... 1,37D.893

Pn,wJ . ..................... (Rh.....) 2" ONiil=Reff. .............. 7,O=9CQ

ftlxxxx. .&Dc)-`ky) ........ ...... 1,828,7N

.......... :............Se~oQSIl:.:~ ~:570314

FI-xiln ........ ........... si,eR-d 1,094 IN

nxhitt, ......... .... ....... 112.211

At . Its ......................... (6;,xine) .... ................. 1.055 983ex.N- ~111 ) ......... ... n2.S89CO- South Quol-) ................... 502,40or.- ~N~h C-I-) 939,265j.- .* I'l-,00 - 372685

.......... (11,xid.) .. 1.770,140. ....................... (Tenrees.) 1,12,711

Gehinill Ankh,".

Z632Q--fi '00286C4wl no (S. (d) be") . ........ sis:.q.:: 1

.718,N5

Detroit ..................... 2.7n s7BIkkann- ......................... 1,290,727.... ................. .................. 7N'm

Iw. Ispnx.) :,:,, ~::::';'

914A 2:

-rdihn &.koui) ......... ......... I IG,'7"95cr~stk(I~ biloin. I I r. I I 1 2.667.425

Dee M . ..................... (I-) ............................ 568,wF,p ............... ~ (North l- kots) .................... 1191im.Ahki,. m,One. .: *::::::::::::::::::::"-` :St. Loux

IN- .315 2WM- W256

$I P. ................. ....... (Iii-iki.) ................. ... 926,413six,w4k, ................ is. ff) I-) .................... 678,264

1khAww,,1 .1kiih ................ ........................... CONAIDAl.. .. .................... (N- -.1.) ..................... 242 269A.,. .... ..................... teo.) ................ 2,1.91

...................... .131:528(f) .................... 1.327,226

Dw,. . ............ .......... - (c--,)3772................. (A-) .

-Orlesns ................. .. (Lov-1) 856 owokw-

cityo"non.) ...................... 601,253

-1s, ~k.hi ......................... x62W,ent- Nglek ............... III AnAncrosp ............... (AINkii)akkx~ . .

............. (IN.) 'NO 0'17.................... (Mortars) 11,2"13

Hox,ik~ . ........ 11-04,013 474

~x ~Ahx*-). ath

I"o,hu'd 675,021.- .. (Nt'"V) ..................... 219,976Nil -ak~ Cm, ................... ............. .......... 63118.8111SarFhii-o ... . ............. . .

IS

&.it . ......................... (wasix,it-) 1 056 292m..lih- oNhf1kwxx ............... no,35,

x,en.R1. - ... . .......................................... . W.882Oth. . ....... ............. ................ 219,475

0- hkII1... ................................... I.alGa.- I.b.. N ol no

FICA ChkiM

12B_uCuin" :: ::: ::::: I:O7S

IhW`vk1NjOnkx,h endwspiky--

Other, Giff ui~

(1) (2) (3) 0) (1) (6) (1)

11,055.507 43,336,110711,10,114 SAV.193

28 W `d`N5 4 M21278 17a..6 S,503199,692 1.0,19,149 V 718133.982 1.14S.2 M 20511:14 M.Na 145Nto

U2 74,706 3.121186.878 657'sn ISON372,739 544.44x 1,10.97329jel -.612 3.6%29,671 175,996 . Su

020,715 01.9119,71111 MIND113,418 1,122..7 W.258261.019 1,511.925 M.748IN.120 1,137.052 ~,M119,095 870,240 39,603120.923 962,031 7.19462,139 t08,074 1.8

4,17,7011 1.1611410,301 9KGm2 29.9W

73.35, 02.248 25,M41.0 1 .7,326 12.971105 1 7A 818,542 10.26831,585 M7.612 l2w

196,771 IA91.127 1.01995,0111, 780.279 27VI

IMSASI 11,522.11119 IOW148,215 923~774 M.wMolt 1.~357.107 52~359536,221 2.1.,299 50.379119,168 1.122.902 QU3W 7W 595,116 M 05"35470 W 191 65%1.323

'034S.

ON 1. N111,113low 91,05 8496

614,U,1 1.952,936 75,11V0,907 465,022 vim9SN 97,915 11,174

147,6179 .3.:3N 26,Ml41:,11 24 W4 X.RS2

in " 83"(Wo W412155,4N n9'", 27~643

80,211 570N7 MJN5.449,31,12 =.M

17,148 215.70,1 O~514"9,115 1,570.473 75,5n24 7011 107,230 6.2.

Mail 1.011.457 67471.753 599.~5 M.07543,923 312,566 1907472,835 MAP 31,795".2N 495,- M,.748.708 3811.656 Zt,-

1.30AII 11.493,112 M.297~1:2 15845311

N7,165

78611:41 10.01,

12.Ul~e

be9951

36,271 185"1

5.062567,957 3.WISI

U120855

50.250 Wil 717 8:6"102,5411

Sub

"'wIm

18,783 191,5"o 8,41..,2xS 26SRS lo'Ne

.1,416 2,171,6691 wN51351 ~ 872,087 wWOO 2111 1.1900

39D ~15,419 -723374 174,656 20,437

.41.1 "13112 WILOW

E.,-,- ced'is oti~.tx .: :: ............................. . 10,787 10,787A.- exis-II,uni I .................. ..................... .3,662 428,0157 15,%5

T-n . bew hat--

CuZ a11 6 02.093 909,313 5,477.502 212,9W 20.069 2,619 9.297

IIno ...... ............ 1365.6189 W595 2,55~3,5013 'W:526':'

U433:""- Yo k 4 000,070 NOW 3.114.799 05997 12242 424 49

(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.Wf) T1xr ........ ........ 3.432,174 685726 2,531.930 113,Dui 10,855 491 10.128

: Amounts may not add due to round ng,hc Was earned income credits refunded amounting to 3 1.3 bit lion.

c:ud.' c~ed:~::or gasohnegrid lubricating oil tax payments.

Inc udes c so or excess yhem, uncle, the Federal Old Age and Survivors, Federal Disability, and Federal HospitalFund' amounting to S507 million,District office details were not available for refund reversals pending classification hall FY 1980 books were closed.Lem than $500.

IISJ12 7,07 ei17.763

n' "",915 12 T.r485 111.

~.321 118 l.X72.87a 5,781I'M 115 1,852

177 3 151.7. 76 2.971090 2N 51385

621 6 No207 10, 1W

17,442 574 .1.0129w SO 7,7203N5 W 18.052,09,1 107 94021,419 1 W I'll1,357 146 2,517

167 uIM12 - 26,7W

1.153 Be 1 IS7,W 27 125US

12 5N

1,082 85 41~4317

2 5

TWO W2 I'MI'm 155 son71"s 2110 tests1,490 107 2.820i'm 30 1.3161,959 21 7,0%1,417 115 ~3,7827. 13 1,178W5 -26 318

,6,- - 211,401109 3 113

5,038 211 8.9911 226

1i .1317 13 11995 W 2.1fu

625 82 M,1,737

7'1,

7911,701

112 :482

2.298 93 1,31115.1his ".6 15""

See 18 2as5,970 20 3.552

208 S3 654,- 226 6,5761.121 1~5 762

S2S 41 315Ij.

155 992

M 79 1'"1ON - W

NAN 3,10 15.10W 2 1 u)

48110 "127 .78

379 W 7270, 2.121

1:3S, 21 261=0822 143 37717' 71 NO276

is1 a

Io.WS ~92 2.9291.850 35 WM I B On0

$17No 16

UAW

Table 5.-Number of Internal revenue refunds Issued

-.----dl.-, --.-,nk=Nu=7.=W by .".N.

keu

I--Ix- iihol.nv.-,--

a]

Telol I Chwhll- Exkwi"uv~ Other Gm Excl.III- PhhN`w-

(1) (2) (1) 0) (5) Of (n

. W.- ................ ................ uqA" 3,11440 21,13.1 2,510 se.mAN- '::IV IAV,772 MAU mN NO U",Y U3,3,S

1

(M-)S, 618,219 W,337 15, 13 502

Son- ...............375,070 3"n M6.195 15128 07 2 us,.sel 16,331 lm8U4 63,402 519 19 1155,. .. ....... 2,026,775 ..N6 I.W7.776 UJI4 620 61 1,4wBull.,. .... .............. (See N) W-).. .............. 1 1.511 65, 10.562 1.455,017 .126 116 411 1.195B-91. ....... (--m .. . ................. . IN- 1.577 1U,272 7,802 35 2 1 mHaff,rd . . - C.rn.l..,) ... ............. I,IWM 8,244 1,044,N3 Ismi 468 a, 916..-n.n I S"e (C) --) ................. .. 1,456.981 15019 1,367,472 72.075 767 107 I'S'll...-xe) .......... W4,52S 2,619 No 442 12.101 an 4Pr.- (Rr.. W-) U1.5s) 3247 N6,092 11,970 N 9 166...o.h1k: Anion 10'BsI- .

1.2 3.378 Wn plyse.70 .5.005 "12 2. 1iviw.,x New -.0

U1.439 11,216 11.5111116 62,426 439 5S 1.517Pix-lipl,

2.5133,512 111 2.,lU,315 97.201 ON 72 3,12,Mthounigh

2,395.M 139. 2,303,742 75,446 468 47 2,110Rkh-nJ is (.)I-) ................ ... 1,479 561 TI 83 1.426,M 43N5 269 41 1,50Ivrg1ra) ...... .......... I 1.. 1,730:131 11,057 1,657.1132 59,406 17 lAnW.I,,ngt (.I.wah) ............ M.0" 2.693 191.242 7,741 7 I.W::: ~ p m: 10.06.3. 751.15 110211ti,415 .,An 201 371 13.710A.- ........... (Geopizi) .......... .............. 1.723mi 11,810 1 W368 (6029 231 71 2.092Bx-p- ~ : : :: - :: 1.139,370 7,365 1.0861we 43.891 1S5 27C,,W.bi. .... car

Gr. .v ... . .............(l 9,- 950 492 5- 911,360 32,0152 Iss 17 1.073Ca") ) ....... ...... ... 1,810,402 14672 1.737.388 KOn 281 5S 1.970is.= .... ............ W.-P .................... 687,2611 4.D71 652,740 29,155 IN is 1.178-ki,onA, - (Flix,N) I I. I. 2w.392 23.175 2,793,810 157,917 1,2W 1 .116l . n~.Irin 11.1m i .:::::: 1- -1

1 1,506,783 9.018 1~442.421 53M6 232 .9 1,677

(S. (d)10.30240 KNO O."'Ate JNXI I'm 2.1 IoiI.573.19o 10,410 49 hire We M 1.57bC.- . ........ (Ses (d) Win.)-, ................ 2,143,723 '~,Wfi 2.060.076 66.308 39, 49 1.950Din' . ..... . ... . .... (MIChl,n) .... .......... ........ 3,118,11 21,506 3 109.3,12 II5,N9 467 SO 2.927I.-No. lind-are) l4alSN0 8,931 1.7U,719 69.128 U3 65 2,117L-ft ke,lucl,l) ............. N5 ma 6,62S 998.755 New 218 a 1.402P..--j (-. ............. 555,801 3,941 533.914 17~15,t W 23 675filidwhi 1011.11.1 Won, O'sh.Asm .7841. 3'.. 4. 1310011A- lswth pai M1,301 2,113 182670 l5AW 67 1 . 518c-it. 11 3.M 899 21,M 2,953,363 105M "OU 1 29 2,393Des ..- 1-) 172131 1113 796 916 WU3 411 49 1.505Fargo , (...

1:.N:W 9, 174,400 17.673 12, 19 55,S,is'Ne I.,aU 1,157,921 WeU 424 W 2,242OMM (N,b,Ma) 484,179 5,718 "3.482 M,774 192 U 159St. Lo I ........... .(l ................ 1 5M, 917 ~3.191" 1.447,410 72,513 377 5. 11.15In P.x ............ (--) 1.-.032

11769 1,263,9511 some No 76 I.N3Nfkbn,gf,,W.O":: ~:: ~: (S. (b) W-) ..... . ............ W6.652 7,890 891 42.363 427 69 I.m.c_,R 7213n .,Ui Oei 2.Ne 357 141.31

12437 309,249 17,92. 84 13 622-in M"N077.575 2.549.116 117.973 .0 a, 3,362Clhe,nn. SX-N). .. .................. . 1111.141 2.038 14O.R3 sW4 45 9 316Del. , . .........

(W in ...) ................... I.N7.351 14,005 1.729MS 100,102 515 S3 3,041Den- (C-) ....................... s%.10 6,274 9GS392 48,972 187 47 1.2MLin. A..~ ............ (A,.-)

Me 74.833 Now 31,280 W 26 1,240O,ker. ........... .... . .......... 1,257,.a

an,ckins ty (Oklaronei) 887,511 7,22 25 591Oki

"03 T

IN:'5':O'l 4560w.ht 35 831 .1 7 0 2 59 426w (Kenes.) .... ............... 720,128 7.122 -,318 43,697 249 1,198... ....... ....... "AIN3. 12AIIIIIAN Obl 4,1114111 412 16.548(Alswus) .......................... 151.0es 1,461 110,763 8.312 21 2 509~11 1) . ..... ................. 278.926 3.032 2S7 We 17,73, & a 503Montana) - ........... 254 089 34W M1.460 8,370 a, 11 71x

Hono."His-) .......... U5,411 3.068 308.752 13.N7 53 24 217L. (I-

I.)olki*) 4,8U14593 39,426 .551,055 217.310 1,916 'm 4,713(Anhona Wi 5,53, 501.002 U892 217 20 on.. ..... .. .... ~'-) 15192 292 M14 11,103 2W 26 1..41874- . .. ~ .... I :::~::: Nevada) 2W 2:2 283 509 ~Xo MSaus -1 1~1 ............ ruftir) .............. ............. 3. 11,1,12 N5 57 12 4WSan,

hir. is

Seart.............. 3,295,- 25,

3~10

P: I.W5.195 12,93201J~M~287 163149 1.618 110 3.7a7

- 1- 962 70.778 .2 1.00,191,10 11" ffI3AV "Ale 11, ffi nPush. Rio. .5j. an 131.316 I.A12 1 6. ....... 5Z55, a 32,667 18.754 170

to................................ 132.952

117

T-1. ii- -xhi- xewi,

~ao; Calkill ................... 8,110,527 .0,40 7=372 WA67 3,534 245 8.50Deviol ................. 4.030.551 ..sht 118,2W 1481 1N 3,473on. 35:' 7' 39.371 5 NO 4114 20"22 11962 219 1.728~y ~ 717: 13 25,356 3~571,760 116,096 700 81 1~1:171.2%, 2 71 7So,

' T028 '40751IS 367031 "I'm 1:278,781 2

District office detail, were hot available for refund reversals pending classiffication when 1980 books are Closed.

Table 6.-Overassessments of tax as theresult of examination(Exclusive of claims for refund)

A,hi-(in ftwownift Wdi

ffin I In ffin Im

~WASO IN 132 W27,741 114175.879In .1 NO1De .3 N 3S8 WINF,o-.. ......

.,.1,179 16 Me 7,855C,,hxveukv... 10,19a low 1631536 216960Eues.. 3.97 4.1m U.230 40.896

Gxt M2 No 2,.2 2,852E c.... ..... 4278 IN. 1.212EMpI,,,rnwx... 4,015t 3,398 9,791 4,300

64

I

Table ?.-Number of returns filed, by Internal revenueregions, districts, states, and other areas

(Slana, oadnaaaalad b,..gwInalloadadfa=aaalka-ladal

UaMS'aaal .............................................sap. ........ ....................... ..............

Allo~ ............. ~Sdd (1) .. ........

Oaadon _.: ............Ba.dA. .. ........son. .. ~................... (Sad(.).da) ..................-.wan ...................... (-) ... . ......................=6 ..........lIannanda, ... I ............. sadmoo-) ..............odI-ah ..................... (N-pa,1).... ................ .................... afiand)

*~ : : , :P'.9- . . . ~~*.. . . ...........AI . ............. (JAIayland. D.C)aaanal, .... ....... J-Y) ......................

panana,gh .............. (San (a) balo,a). ...................... (Va'atia)

...an, ... ................. (Nadana.)..9. ........... ..........................................

AtIan, ....:::: :i: *

G-In.) _ ...... ............. _SIM19dan ............ AIIWM) ........................

-l, (Flanda) ....................

s.0.

(Saa (d)IIIa. .......... (10-W) ..Ind-d! .................... (Ind'..)I-'. ...................... (--k,)~arloa_q .................... (.. V,,,,..)a-lawlaa .............................

~Soa,ta Dak-) ............C..g.

1,N=,h) d,~)

S, ..............St: `aw .... .................S.Il .................. (S. (b) W-)

soodiaaal a"-: ~ . ............

A,don .............. (S. M wid.) .................

Daw.......................

(-dadl .............0,1ad ............. (Ldad,ana) ..............

Oklananna Uy .................. (Oklatana)Ida ................(K,

............ ..............Ddd~ ....................... .........................Hakad, .........................

Loa AnVado .... ....................(SAn-)

...... ....

SaftLaa.Uy

Sawd. (W Von) ~..............Cdaaad,aa~

poan.M

()laar .................. .......... ................ ....... .......

r.w...-dal-alann,

road and aav,a$aaIl Omaa-dadfFAada,, pannaaan', C"'p'""'" Eaaaa air

(1) m (3) (4) 16) . (6) (7)

IQA"AQ W".,M 1AWS, Iwmln Z-,w utm1.1673... IJ3LM =I- WASJ1.174,~ Ma43 71,4118 10,066 8.645 21.261 1,236w "1 455.084 40,M 9.07 3,752 1 I'M -72 IN 2,500,301 U5.392 94.991 2O.OV n.w 3.935

0' X2,699 S51 2%.WO V.7N 27,507 -.637 3.643

2,648.ND tw.m 157,843 36,702 19,M 42.664 2.-

=112 206.117 m1e, ~.Wl zM 162 2.

2,435,739 L502.658 167,979 .91210 21,075 ~,582 2~se3.356,695 1.784.167 211,- 111.9W 35,952 131,8W 3,W

593.665 M7910 ..2 S.~ ~.Wd 1.,- 57'600,211 40S.17 31M 1.7M 3.- 1~1_ 441

,.=,M111.1.95, 1,172.201 2?4,4n 1...2 M17" 17,U3

1:3 7:21 1 11.117 198,271 11.610 27.M 56.3N 3,2WS,:, 151 3.M.615 3113,~ W.W4 41.7M 143,167 4,SN

" 8.,w 2.989,813 M.728 M17V 36.927 W,113 4,058z AS 1.809N6 10.077 39,U6 V~623 29.3D5 1,8713.165203 2.119,219 M,376 30,71a 25."5 51- 2,7139

501.106 249,Nl ,.0 10,486 2.527 SIM 441M"ju 3=,- I.205.m N,w '"'37, mm,3,109453 2,071.7W 136,677 25,131 MS12 M.255 "wI

100 981 1,359,IM SO,= IS,= law 30.00 1.121

1:0'M

1~-.305 83,373 10,267 1Z359 27.9~14 1,3243,M.No 2.M,7n 168.558 25.~37 26,4115 58641 2.1.1.

281'295

W255 58,012 6,567 10,96, IS.ND 828

6,157k370 3.954,744 .5,3N 92,292 51.103 167.UlS.S.

2.7".433 1.851.649 IU.381 20.512 27,351 37,410 1.970it338AS, 12M.A16 w1l" INA13 UZIN,

'.076 1,934,813 162.70 X818 ~,457 .2,285 2.663

3:8'39,137 2.626.M ~.,M 49,417 28.674 W.21 3 4835. 56,931 3,757.322 297,136 9,SD9 48.281 92.2111 3,5263I:,1~1,2:11

7 11:22 a. 197.472 QJ76 .149 551~ 3,707

Wl 297.138 1OS.N2 19,163 20.253 W.W 1.5.S64M W7.300 S2,91, 9.722 am 15,921 715

IZ-15. L307.5114 .1,.21 1.1m 37830 31,1n153~w 276,S40 28,127 ~,50D 5.746 7,557 81

1

1498013 3M,691 W7.799 114,637 55.74a 107.424 7.443

1:M Na 148.402 W.U9 21,745 MAQ ~Im..,762 M,2N 27,554 4,7W 5,121 7.S82 I.w

3,ON

.0 1.171~1 2DO 5N 52 413 26.071 W119 3.VO1OS7:M 653 932 71:230 14,326 12J34 22.U3 2,M

3.052.635 1.967.M 206,218 `6.M 25.7% 0,151 3,.52,07.425 L716,566 151.981 31.115 26,878 SO 073 3,4111, .32, 1,241,000 135.669 V,574 18,798 24.374 4,1 SO4M . 12=633 "ou".77 11131.10 "',ou MAN 17,159

761 M 502.9N 38,457 5,959 8.2W 12,355,253806 3,297,362 241,21V 0,943 WN1 $0.470 3,781MI.652 INIM 16,7,5 2,879 41614 7.477 29,

3 790.554 2.30.874 210,351 4656~ 55.168 0.745 32W1W4.003 1.241,727 110,660 24,972 29'.6 42.NO 1,809

124ONS 800558 71,740 9,020 12.250 21.W 9822~281:970

1 ~510,070 lw~ 11.2" 16.1V 0,926 1,312

SOO~ 1,141.239 mw 17,912 21.W 34,702 2,M559,S72 970 895 113,530 20,- IS.W9 21.S27 2.P816.40,

01 Lfts- Ns- M~ .9.07 2G.M275.332

175~649 7.= 1,232 5.w 5.056 145

568.2N 364~255 W1805 4,4% 8.261 11,011 4~5VW9 32S.07 3SINO 5,201 1."3 ;SI:123 7.W. 022 413,178 39.062 6,381 7~826

On6 7w

2~~1:11 1:11 ~995 610,559 12S.6SO 131,.S IN'— 10,220S

P`

IN U9 107.152 ~,900 16.599 29,261 1.5V

2,087.wl1.210,215 11S.611 20,245 25.301 U,132 1,974

.B482 362~529 25,971 6". 6,.5 111SO5 332V6,"l nju 11609 12,069 17,261 540

6,663.911 4,218.958 4.,NQ n,712 91.126 ~,973 8,3152,75ZM 1,741,060 166.748 27,~ WIN 46.1 1,958

Sn'"' " N -M- "1 10,055 -

211,172 79,229 15.423 87 71 235 38112,100 318,U8 48,502 U2 810 9,no M,

Waan . ......... ~ - 1,075,541f. 15,awaq 1012381953 200,372 M.951 264,111 18.5,15111,nod ... ... 1 1.11 7~W.~ 1.9a 69, 473468 142,211 74.542 131,M 11,593MNan, Y k ................... 11,199,618 71150,326 710,965 181,489 91.907 ~118 11.629d~olao :............... 6,741,213 1~561.162 387.= 66,235 51,131 1w,Sw 6,146(.)P=0 I. .. ... 7,021,914 1,7W.M IWSOS 13SX8 59.550 98,418 5.9n(f, T

9 N41M 5,651,236 451,633 95.507 113,2W .6,2,5 7.063

waan. Nadannal~23~ ftlaaaa Fonds 1NO IWOA, INMR, INOSS-PR. IUX 1W 1W2.

Fon. I NOES

11 11S~ IN. ~I~1, :~- 10~: 7112D. 1172~. S-- (Soand 114. 11201, 112..),112023.11.1..,1120~1. I QO1 Ind, I..7) W.

'.N and ~&

Table 7.-Continued

a--avaada and d.-,--(Saaad,__-1 --vw da-

Inadoaaad -1

ftw Sadad. -1 .............................................a- "...... ............... ...........................IN. ..... ... ~_ _ ~. , . IS. (.)~) ~Au,,W1 .......... (Manna) .. .....

.......... .... (.-Cn-ad)_ .............. (S. (C)-)

B'dal. .. ........ (Saa (C) adoa)Bon.,lon .............. N.,_1

d . .... (Conn-and)-n,Indl .. ........ ..... (Sad (C)

. . .........

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

.oannorn -rAaal & D C) ..........

.-ank Nan, -Y)....oaladmana c- a) w-) ...... .......

Roanono Nngana) , .......................-... .......... (lOaII-n.) .......... .......... .

Saaaaaaaad .wan ..... ............ _ .................Allant, _ .... .. ......... (Gda,gia) ..W-gnan, .......... ..... (Al.oanal ...........1-a. _ _ (Soon, r..a.) .................G,..n.. .... ~,-)

~ .. ~ _.. _ (madol ................... .... ..... (Flodd.) ......... .. ............

. ...... ........... .... (,a-) . .....Caad,,Iftgodd _ .__ . ............ ...

=G-nnal. ..................... (s. (a) w-).no ..... ................. (Sda(d)-)-..

ooil ................. ..... .. (.i.hapn)ind,naladi . ......... . ...... (Indoo,a)-11, _ ~ . (Konaa,ky)ft,A-2

alladanall A iaa,AN,dX"_ iSouth Wkdna)chc go ... (S. (b) del-)[)aa -nad (,-.)F.,p (Nonn ~,da).,-.k.. ......... ...... (W--n)o- _._ .. I. ~ (14,ha-)S.-1. ...................... . (Moddon)sLp"I __ (mnnaal ..........Son,fiald .................... . (Sda(b)a-)..-

saawaaart Ragio, ......................... .......... ..............a- . 11 I__ ~ . (~_ .-..) _

Aaaan . .. ................. ~. Sda(j)oald.) ...........r."- . _ .......... ~.. ffl_,j .................

LI, ___ ................. _.(sdd(f).l..) .. _ ...... .....lIan.. ... .... ................ (~I.nndd) ................L, A.l, ~ .... ........... (A,.-) ..........NZOH.nl ... . I (L-ad.) ...........Okla— Cdy ................. (0allhOM) .......................W.a. ... . , I (K.-,). .....on ....... .................. ..............

(A..) I.. I...............odand) .. ..............

wl- (..nanna)IIdnoa,,"A~,~, (S-W-)-P- ....................Ponla'dRand ........ IN—.) .... ...... . ........Sall _ak. Qly (Unah) ~ ......... . ..............Sa -.ood (Saa (a) oalda')Saw. .......

IdaNa,n) ...................

wa-aa"~l ............. .........Plant, R= . ........................ _ .............01., ... ~ ................ . ....... ................. ......

TdWaaa,aaalaIadA,adaa,,dd,a

Eonlaaadd.

P) (9) (10)

Mill a.".-V.- 3JU.SN .0,.,

1,728 209.0671.197 134,1123

6,651 W,IS7 26sSS3.814 116.590 9X71.30 425SN

WS 10W5,01 432,1. 26.7156 WSU 10,395

112,593676 113915

27,570 IMA. IN.",Eon 560153 -27,_ M.73D 6.5`8S5DI 749.6732.WA 429.497S.332 W.036

708 72.265 102,985".727 001501 49,318..704 621,4W 26,6212.522 40a,2302.157 ~,0374,959 680,2W1386 279576

1 INS 1,3131SIO 22.15972',ISO 510.350

.,170 3~.O'- S&M3,Ml 157,358 2623.4,982 MSH IS.5EW 873.50 116154,S, 1 =.9",2.562 3715.1.021 187,81,

41Na 3.W VMS

TW 3U8,782

J,507 7,861

6.551 1)3,574"9,6 WNI8,376 .8.1574443 V2 W7,

N,MI:035

19618A713 4NA" 25,526

1.233 348.67929.316 3,727,24S SS.V1

857 153OW6.684 01,615 28,820

8M 72.W54418 780.106 26,7073 4~ 381.01Z011 258.023tm 4W.M

3,767 357,0224.2dO ni 1889

n1ads 1.11611.3M 71.133252 48,797IS6 119,05.

20SS 122AI.1,711 108~7606.56S 1.00,6`14 n,1552.02A 276,7773370 N9.315 5

5`6 N.N81.736 10,7516- 1,183,387 23.2982579 519,315 20,6751. 1951,6548 82.525

.1 13,240

W ~-. ................... 13019 2,874.021 524S3(a) fla.no. ....................... 13015 1.214.186 7861(C) ~ Yd,k 16.771 2,232,449 19732W) 01,no ...................... . 8,523 1,06,254 11,944(a) ~.Y-n.. ............ 8105 1,179,170(1) . .. ....... ............... 11,102 1"",721 55.527

Dolaad, __.;(8) Foll 709(9) lacl,,ddsFo,nd9aO,!IIOPR,94I.%IlM&SS CT-1,-CT-2.

~~O) FF-;: S190. '011.9 T.NIZ.5221-17201) add 500 5~, S500K

(12) ~ncl.- F.- 1, 8, 11. 4701,17%,4707,471. Alandl 1,1d. T. Ratonad. 1W TWO— E.lw Ta~ RW-~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

Eonloa,aa, An,_ Eao,.aaaaa"Won,

(11) (12) (13) 114)

3,511 E~ 6.431 27.7591.755 3= 6,155 15,28a

14.511 9.1. 16.230 97.49313,627 8.987 IO,S&I 120AM%S7. 12.- 1S,21S.4 2,024 2.041 9.579

10,532 11.2w IS.IA5 IGO.MN.043 71550 7.355 137.2991,- 2,27. 4,142 16.0432282 1.443 115N 12.70

WN, 61,176 103AD, IINION~Jal RYS6 11,- 21 1,52S24,406 12AM 21.944 3U~52929,360 15,127 2S 816 100,21116N7 10,923 20.592 57.424

I'llIi.03, 18,= U.59a

~1276,W3 2283 24.816

97.1.,,.

2751U I.w

15.313"24

IOO.nI6 M 7.578 ~.':7'37 KISS7,4.

6.7" "40.461

15 406 12,IM 11~489 8,4 644 7,

S17104W P:3M,

.,434 M,'

B 31,67.406

11.159 34 19.145 173'U'773

.:"1" 12:427' 124.787 IsS92332

2113,604

.3.608 23,207 9215 408 12AN

~92 1771:62

7,US 9.090 am03.773 5,70S

a.593 21.07

"'

02 q,.M 'ln.2 M~

2!

1

"3.462 5917 17.934

Q.109 15,287 2D.717 219.71212,176 9.391 21.572 7,a7l2'.6 2.752 6,525 17,2532"5" 23.559 24,597 7SO2O6:1

'652 13492 38,261

IS 3N 17:177 24,176 76,00022,779 lu.m 25,495 103,275ltm 5~925 14,70 44,021a,- "."1 151,067 I.M.1413,211 ZOOG 5.1126 21.1o,

20.668 25.918 X129 4SOO931.300 2.225 41186 17.052

17,4W ~.l 17 17o.wl12.574 7,139 12,729 93.1.4.211 5,745 11,511 3S,UO8.770 11 M 16'.8 70.1317.n3 10,643 16.80 77,2616775 a = 16,M 50,739

1.1.30 61,18, 1,111.09 I.M..",,w 2.312 INS 23,9733._ 3,4M 7,117 2~.-2.477 4~654 8,7m 2S.669I'M 1,970 2.405 22~212

S3.200 191,89 37,069 310.308621 61355 7,742 "'IN

14922 T778 16,583 na,2202,91 B 2,309 5.11's 28.689SO25 2.280 6,379 39.218

X193 20.953 40N3 402,38311.176 9,977 25N3 137,Nl

m .1 19.U35,1 25 W253 16 918 18,792

07,03 40,742 77,952 712.74659 644 24,212 35,480 2U.633.15, 35,702 .0. W.390SO 153 25.711 371W 280,527a6 OS7 2SOSO 46,40a 157,053S.068 37,759 S4,246 651,074

66 Table B.-Retums filed, examination coverage and results (1980)

CY 1979 luminas .T. Ss""bil Tbi~' Ponbsn'Assets - Con. C~bbmlgo

ImAmeaM. bou 90,121.115 m... 1.346.321) 1.51.11 1.113sm -

P, -.5issas1, ,5.0as _.. MON

38 MM 26.273 372,221 39.6% 4M,lw 1.14

172 1 ~6 15 M 192,U9 48 521 255,975 2.032270,101D 57,4si 5W.199 $7.812 7251~ 2.

N. $so- -1 1.251.151 M,457 47,161 2.719 109,337 874

BI unda $1o.ox 3,M.2w 36.330 77,D15 4,049 117,~ 318

8 $1 am b" MODO 5,465,E78 36 408 V..7 8.876 97,731 in

5 130,C)oa 1.871.2 61,475 24 888 3..G Wells 4 n

-,Jay

P,,bbon,bo,

1.4"DJOll s'sTs .'n'

I.M.311 221.0s, Me", 1.7.

C.,-., T-1 2,NI,612 -'6.3 1341.550

-1. .. nb~. 125,(22 5,790 5.7130 .,61

undin 51 MOM) - i.m.189 36.520 36520 3 Q

$100,00) r..' $1 1 746,767 51,963

31 M'I unso, $1 o W'I 11"(w 27.636

$,a Mll ... 3 1 Go 26.302 7.756

51.9m 6 N

27.06 lau

7,756 2949

itsba- Aslaabbea 71, obe P- A-p lr~ nd Ch.V.,(In .1 P ..by W Asia, ,s,bon,

'.'S- 1. 1Wm_ To.

A.- A.H- C-.. T-1 .9- ben,

$1.335 5- 11131 11111`77 "I"I's - ints 13

1.3 too 5 258 5,438 - 131 15 30

67

"S - Inbe, 51 a 000 1

46 58 1 - U86 3aQ 141512D - 21 M2 20117 433 24D '3 '2'1

N.1.1;~1:000- $15,000000 uncer 3U.000

.1, ..146 1 447 12 40

is 69 1 1m 3,159 No W is 22

N 12 2 137 2,570 M 250 12 20

452 .83 7.358 1161 - 12 a

3,429 11

NB Most) and-

B Undo, $ 1o.0)0 -

8 51D'00D _. 53O.D00

a

39 P-lp

".972 21 c-bbuu:b. Tetol

16.5,C) n

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

anion oa~o c~~ Mi,311,11, 10,457

.--Ift.C- 6.156 "oos

IDA17 ~o?

.43,

1%,:M2 MOM!` "wis 211.41. 18.17

G.. E.I. U- $30'sDOO 119.169 9,15, 1.225 10,376 8.70

'e'tais law to 20

61 61 1.679 27 u-, $100,000

195 195 3,758 23 sloo='- $1 M11

37D 378 13,685 17 $1 M'I under $1 a W

o W 0,674 to $1 o KI abble, $100 KI

-1. - beconod .

$1 DO .. .. -

31 31 2.M 8- corp.

45 45 .7,631

"osis 4 1.00 3S."s 2.71118 12 17

75 3 79 8,247 2,827 15 16

970 1 971 K935 2,578

cm.

Esses. siou,

Gloss Esti-M,DDO

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~

Gloo, ft.. 3303,000.. 37.193 17,657 381

Totals may no, add, due to rounding,Nombusiness

Adjusted gross income,

Business .turns,BOlanCe sheet assets

IS- Cmun no-crelp Me by d- , not ... lato, No liable of oemos obne, unmulbon,

68 Table 9.-RLturns filed, examination coverage and results (1979)69

h.mNlit tilitill,

48 - u,xe, SIO.COD

Fm 3~50.003 $15,00DNo 5000 S50'0D0

.5 560.000

B I unds, $1 o'000

DMON..s.,

kp

u- PMDM -

3100.00C.- s, .11

51 .1-$1. .1

s1wWrind-

C", IV. All- I. Sil"r"i'l,ANrdI Clixtili `k~

VAAMI 2811,141 1AK311 '".wrr 1~194114

"m

111%

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

Ma ... I'm m

12 627.936 17,119 210.8a 56,637 2M.W5 2,251.'W'wa 5".54") 561.713 87,7sl ?C4.02. 2.91 11'5' 4

'91,2 1441 1:~ 294 127 11 22 .8 slo.000 $15 NO359li

116 On 2PO lo 23 NB 515.000 550000Was ab- 40,247 I'so, ah.989 lass

"I'lid"Jane I. ."If FII,Ira.

4.N3.915 11.501 95,323 3.790 IU.617 3,28 121.2 68 5 .8 Iss, 3617 718 208 11 22s'lw.wo ..- 50,117 7,558 92.M 1~81

I.J 12,ilSO "'V

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

11195.186 xt,_ 1. =A74 .1

1,2110,371 "zititit 47 .zm? 7.44

ImMe 8,273 7 8280 (170

M9,614 40.156 22 40,178 4.19

674.357 53.507 1~

Airrini I. I.

R-A.-T-1 `irnirxir~ T.-__ drilint Apae, Audilani CInam, Ap-

51~j S542.2 135.1 M101.5 "A's $176 12 24

373 2 V.2 IN., 1,198 799 503 13 1.

ft ChInfili.

955 34 3 1.7 13"6 2,710 685 225 11 19 B100.000-1130,000

-6 1". IDWS a, N

n

4,137.3 4,137.3 US n 4D

80A . 1 9,721 31 N

6C) 9 61 0 1.sle 1,3M 32 36

M9 - 9 3.M 177w.sm 7N

iss"n asums 1 28.629 2141 393C 393.0 13,729

24,421 8,373

41,T11 3.S5(3

8,3n X21,

3.957 83 1

NxIts exIi- conioalson ....... to "jilan L"

c-

GiassEsIall-MODO

G_ E.I. mo.-

m

Im

I"s zin MSO

122,335 10.867 1.874 12.7.1 1012

35,115 16,1 n 318 16,491 16.17

INN$ am "al, KIM C(t,

I- a Gil, nOD".175 5M.75s hil 2,M,480 22.

E.-

To als may not add, due to rounding.aNono,sine,ts neturns.

:Adjusted gross income.Business returns,

Balance shiest assets.

190.7 5901 70,-

2,8014 2,504 4 709,893 339

28A 28.0 2.00

25

19 50

39 GO

41.1 41.1 211.843 37 D.Mft "w cars.w.. 5.7 W., "Im 2.611 11 1.

N 6 4,5 1031 9 07D 2.424 13 18

-.8 1.1 .59 27.50, 3 5438 22

133.1 1.2 25

s,3U.O 5491 35, 6.916.2 12,113 4. 176 19 24sm'ss' rf'745 10,359 42.1" U, 67.6 1.6 WI 097 Is, 1.

n.592."3 N'm 10i Aa

aeRn,liall, hills,

Nis W.000 ma v,,

a I-5 1o'000

Canparniacn.

Asse. - "'aah.

uno. 51 OD.000 -

$100.00)-$1 M'l

$1 Ki-31D W

$,a M'l -sl 00 Md

3loom,lano-

SnIlla"- Corti,

E-1 krall

Gn- E.--

G- F.Cr. S30D.000

1- E.- - Gxt, Wall

ud.

1-2 119.22.5; -~~c~~

'Schnce center no-Change rate by Class is not available. No changes resulted in 33 Cercent of sel-vice center examinations,

70

1. .1 lla,aaa,a naglana.dt= aad~eaIlan,

Table 10. -Number of returns examined by class of tax and by Internal Revenueregions, districts and other areas

Tatal aelaidaIll 0=1P

a-C_ aseas

C_

T-1 ............. I ................. ........ ...... ..............,"fla. .... ..............

i ................. .. ................. .......... ................................. ...................

banhantat . ........... ......W_ ....a-- 6o~a ....................*~Aaaaal

Z,a:

A . . .. .......... ...........A,gwW ,~ ...... ...............B,a- ............... . .......B-lyn .. ...........=10 ... I.. .......................... .. . ............................-d ............ ....................

.......... ....................P__Pm-A- Sa- DanIar ...................,--. S- Cnl.r ..............

at"e"l PO,:=Bell, . ..........................

PNIA,ieipwa

.. ........................Onatntil.P-at" 6aniar ........ ........

Sa,,VaaewtA IAllA ..........................

G ... ......... ....................,.-.............. .................j.-. .... ........................

It, ..............me- Sa- can,. ..................

Date., .o :0.. ............. ..................c. . .........................

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

... ...... ..........................ft- I, ..............................cl-I 11.-IR.A -I ................................c., Go ................................

S Paw.S~=*ld

Qh,

AltaGu IG . ....... .....................A t,n ....................................cma,nn,a, ............DA,. ........... :.. - ~ I ::::E)e,. . .................................Ufti,R- . ......................... ...Naa, (),1- .................... ......o..- oly ..........................w.h,. ..................................A.In Se- ~.Isa .....................

.An,

aag: ......................

Haana ...........................Ho.. ........La, AN .. ........................pnun~ ...........................

R_sat Lao cat .Sen Ft.

-seaft5~~c.

C"e"F,-S-ic.C-.r

21=1.OSS I..3.45a =,.I 9,015 133.S93 12.01 ft.414 4.327 n,doe 49.91111 23.1107 19,318274.40 2,W I.GV NIM Z363 a,.$ I'll. 11,517 "m A7,7 Zen

152.41a XS,2H 2.717 1~4 17.75, 1.- 3,Q5 OT5 "N' 5.9115 2.619 3.196.1.3 2.06 Ma 10,17, 1,03 3.1. ,- 1a.2 ?.,I, Z.. X,ilWAS3 54AN 2,.2 "'as 'soos I'm 3,505 037 91081, use 3,073 We269, M,282 3,573 Ina 21.093 IA" 4,M 1.498 13,342 C977 4323 3,5109254.145 .3146, 17V IN 16,231 I'm ZUG Gas I'm uln 2.5. -KA305 481,305 5,220 2,M9 0,157 1,521 4,en 915 Il.7W 6.121 3.533 3,959

13.50 5 . 6039

274 a a Z1.3

12. 90 9 as, 173 59 870 10311

80 SSI Gas6,720 4 503

Mw 9~ w 75a 5M

48.151 Us'n 321 43".

297 263 me 173 2,286 IASO 2.00781,110 71.544 M9

107 3.249 647 1.n6 317 1.738 w 993 671

27,2M 20.852 31: - 2.OW 1. 10 225 I'M el:1.092 3,238 6 32 397 56 12 128 12

31.100 24.237 536 212 2.527 Sol On in 1,092 Slit73~262 S8.2. Sal 257 5,0135 Wa I W 419 2,- 1,W7 1,717 1,227

20 3,933 4926 4

29 as 1. .1, S,a

-,:Us 3.680 10,

, I69 891 13 67 28A

14.312 14,31225.425 25,125

51.105 40,557 6`2 in 2,727 22. 610 224 1.701 1,699 1559 1,27912 21 W 722 56, 162 an 489 1,139 210 1.942 813 493 l."4,:1

"'36.682 629 sw 4 41 11 111 141 ~:. 1:. .7 917

26.1129

720 321 155:jN

1U an , .an 1.

39,161 33.044 509 1 CS 2679 22 u 1 128 1.24' 8795.070 3.949 52 46

7,036 98 46 64

77

10,552 10,M2 - -

51,168 -1.298 .8 131 3.22 276 296 W2 2.093 1,125 1,5s? 77230M 25.879 26, Is I

Us 138 2n I%, 1~191 4919813 lGaal 114 58

'()` 131 189 Go SO, No

al..9 32.098 s2a too 4~N3 289 atte 279 2M2 l.NG21,886 18.473 no '1 '19

92~ 2 135 I'm .1

96,117 76.951 an 4.7 1,923 778 1,S4 433 5,811 2,096 1,121 Sol32,4 26.745 SM 149

2w

129 317 136 1.249 an23

.521 23.52426,237 2a,231

N sea 21,667 A43 21 2:11 1 1 131 1,482 565 1461 116340.215 28.425 44 217 588

7, 1 ,i's 261 2.28G I.M SIS 128

64061 515.755

37' 717 91,

26"M 20.138 280 US 1:73371 T I~474 7Z17~563 14,201 M Go .in IG2 3M 110 411 589

7:117':7" 1'

55 760 5D 1551(1, W7J."S

11 79

5,635 A493n n M

11 113 262 21171. 60,937 .11 616 IGN

en 106,

...3"

l..27 .,5l;63;

2. 707 w1

as,ON U9 Sol 251 1.177 059

5:729 77 132U 58

IN 31 SO 1411 2 71

'76N3 3.2- 221 11 120 2.060 659On 121

M7 ;N 05, 1,127'4:11 ,

NGo 17

M3 G2 2. 1.0se

4M26,M7 369

2' 731

"246

SN 492Got 1,721 1.080

M 475 27,455 571 1.1 3.- Me 192 290 14M 877 1,.3 11585"271

M407 219 2.057 1w 570 176 Mai 633 -15,

859 ;,85G

0 7N 1 14 1 5D` 48 57 11 457 15, -,3:12sa:w 5N in I N 3,248 306 517 IN 1.70 1,627 1.484 507

4. 3,961 856 "

44 w 32 91 735,

"251 3. 71 339 Sio 254 ISW 2,6~6 1.110 433624 8 1

M:2"11 Pl:Z" 11'. 1371.6

217 67 731jU 170 75 797

11147" "' M

211 73 2. 1236

6W:874

24764 2.4W 24'

-so = 111W - -

22 1:1 1 211141 . 11, 1:SlG M21:1 1 , ~ 0 ~:378 J., 2 1.

101 1 . 312 338 331 237 37316,828 16,828

8,317 7,221 89 32 39 20 20 8 352 1828.634 181

52W 85 U M 697 29276 1

San S NO 0 4W 72 N W 40a 3 7OJ94

"376

167 33

_53 N n

17D

112

M2,146 209,516 1,70 73 Go .9 1.860 21M 3,413 1.50A 1.377 2.13223461 310 1453 ':'

52326,95, 1 We 104 245 GO in

111'73 41~741

M2'14367 1,563 IM 203 IN Still 675

3 sea AS as 45 512153

12,no

10627

1"7 508

95w 26 No 39,

123,2B5'G~,

.. 1'.16 505 5,18, N4 1.615 me 2,819 I'M"I I IMon 27,754 587 In 2,211 me "3 112 1,706 776 1.162 1107

16 W7 16.907 -30.650 30.650

Table I l.-Additional tax and penalties recommended after examination by class of taxand by Internal Revenue regions, districts and other areas(in thousands of dollars)

1.1anaal Pat—ft.- d-.-

71

EA-0Ono-

~_l _ .............. ........ ......... 9.462,942 "70,557 a- &Or.- 75,005 ~$.M 911116 .."a 71.533 ss.sai.... ...........*

2,976 027 nun 2~1. 2.20,144 =62. 15sla, el", 6.432 1.18" 6.838m-san. ...... . ~. ~.. ... I................. 897.497 n4,W7 12,M Sn.n5 Mau 2Z491 B.631, 6.322 IL291, 1.042S,AdIaaal. _ .... ............. .......... ... VBJ.2 Wl 1,134 371.M U03 7"s 1.1.8 14M. uO 5171oCal., ... .......... .2,236 ne". 1,.112 40t,332 5.882 "Is"? 6.57a 40.740 4,911 1,-M=;

. NO n;

.719 946.741 7,759 M031 n.W 4,172 17,M 19,yo;:OS!: .

W.-. ...........

..Iy ~ . 28.441 10.484 175 12A. 177 3.933 243 W9 566A,- ................................. 21.40 4.168 Is 13,122 14 2.116 72 las 1,7"B..n . .. ......... 35 566 38.567 903 2SO 527 7.D99 1"52, 1279 2,141 931 4.5so".0. ...... ~. ... -~~_ IGS.22 59,MS 71 57,786 2.310 13.005 13.5 639 1,193 147SUI-Itl - ......................... 141.437 16,130 230 110,305 7 4,NO 1,652 07 Weollal.n

. ....... .... 15.943 2,92A 57 12,4W 453 . 39 70... ........ ... .... .......... 176~507 20.723 402 138.752 182 12.596 2.067 40 1,3161.71.7:21.2 1111 172 1SINN

'26 1.,9 12,23~ 43,17 2.311 1,245 8.5so s:sN 6A .11 25 Go

1... ... .. ....... ........... is's5s 6.M2 7S 6,476 492 1.6. 27 17A -Sa-..~n.. ..... ............... 2.608 2.W

B-..nS-.C.I., ... _ 5,685 Seeshlld,hflaas~" ;

IS Im.. .... . . .. .... .......... 126,U5 43.225 AM 59435 2JU 13,936 3,768 Iu7 835 GasN- __ ........ ............. 195.374 47,031 245 118.767 297 23835 2.85" 583 11.9 113P A-. . ....... ............ . .. 207.241 47.764 662 114,035 .,02 39 634 S85 1.572 1.713 124P'..'l, ..................... 182.032 s3.919 %- 126.511 1,147 7j. "7 1 Noft-nd . . I M.920 4D,U5 45D 77.423 10,556 6501762

wo-g- .............. ... .... 45,t7l 9253 54 27,1 M1.223 1.510 312

S.-.. C.Is., 2,210 2,210 -5.980 1.063 322 13 1,323

s,IGIaa. AGO-All A Its ... ............. ................ 114,982 AA"D Iu SOMI .9 9,9AD "W7 5.2s7 63a 2NOBlIniltion- ... ........ 98.120 24,374 BM 0112Co. 4,895 1,627 2.682 292.A ............. ......... 31,7. 12.274 72 11579 366 2.N3 510 73, NoG, ................ .......... ...... l3a,476 X610 170 SAGG2 M7 am 2,1~ 1.687 979.. .................................. ... 37,135 18.315 1033 10.284 3,923 3.287 243 SO. ......... .._ ................... U01909 4467 112.755 2u, 39.363 4.516 1 oth I'M 3.670_ .. ......................... 80,742 27,243 425 42.406 'to San aCa IMS 912Atlanta SanIce ~n.. .... .............. 3,816 3,816ma"I"". a.-. ~Ia` ............... 6,399 6.399

Galante R"..:C-- ;41~1~454 11 1 5SE1 714M we 9,7el 734 2.01 00C..- Sul 33:302 148 82,3G, ~Ifi 15,"0 016 5.6`5 1.52-E)at I .... ..... ................ . M1,416 WS79 515 2394021 2.525 M321 '... 38,583 1,710 17599. ....... ............ . ....... S5,093 28.539 284 2B.SW 70 2Z903 11625 1,717 16anil . ...... _ ................ 128,198 MAN 11, 64,051 1,286 21,270 010 391 WPa.-, . I . 28.06s 15,51, 71 6,785 783 4,431 141 13 277C=lInAn Sam" ~M` 2..75 2.475

all I.,A 9,652 3.643 10 3.655 i.no an isCh-g. 5..4W 76.6D9 W .82,764, 9" Ia2W essa 907 5.5 3,11~De,,. 1... 73.733 20,185 88 l.w. IN am Bit am UsF,,W 111W

4M 4,657 SN 1,765 2W 8 amll.-sal 137,567 22,482 215 107474 16 4,422 1'.12 1.Iw 373Onah. 48,113 10.W 62 25711 747 9585 1,07, 156 soS. L.. 111.959 M.U8 111 81,01 2,10 87V 11.0 333 9,122 835a'. Pata . ..... 23S..lS 27,581 119 180,934 2572 6966 Use na 11508 15.233S,anntin- ......... ............... ..... W.M2 27'Oss, 467 40.931 292 16,897 3.92B 261 221,.- Oil, so,"C. aan... ............... 3,235 3235aa~lh,aaal la"aw:

A i.. .............. Main own 9 6,752 655 3,035 657 122 6D-

A In ..................... ..... ... 45aM 49,562 2,443 345 462 5.658 35~645 3,531 U62 4.350 4,153Ch.. . .......... ....... ............... 12.621 10,43t) 2 W3 1 872 in 92 111,141:11 74 11 14 2,138 V.745 1 1,131 970 Asti21:121"Den- 42

322219322 91W

7. -2$45 802 ;x9 Ha I.7W

N-..945 79 4.740 7

3:1"M

604 WT I " M,049 2,070 6'. 1.5611 1. aswlthona C h, ................ 61657 20,753 102 27,351 I.U7

a 66 67 959 Sal

.. IA ....... .. ..... .... ............... 59 434 21aN 112 29,407 287a755 u 1.09

.."I Selic. Cant., ............. 550 ON 453 am2,316 2.316

Anc,W.p 23,N5 9.247 112 13,188 45 257 23 71 -999G_37.275 6.611 25 27,439 76 2.358 257 Me 171............ am ..822 4 1.915 89 3.W 185 IN no19.348 9.646 187 76% 5 1,727 u 59 34LM All; 1,, Wslu 197,035 2.311 262:01 184 35,897 2,51, 5.6a, 1.167se:1 . 5:71 , S 4.1,1 13 14 29 186 77 1~537 2W l.ID1 35

n438 So 31 Sao 9 4Ra,, . ...... ........... 310.853 23,8n UO 0: 11 276.41 W13

1439 207 333Salt Uke Oty ............... .......... 18,U2 12SIS 30 3.2n 55 188 sons

uSt, F,.I-.a . .... I.... ............ 1 422.353 106.647 l'oes 175,"' 1,013 122,761 4,388 I'S

N7Sa.tI, . . ............. .................. 75.855 28.66a 236

"06a 11 U2 10 NoO'de, s- Can,. . ................. ...... 2.774 2,17.

814 A.

7.670 2,495 80a :684Reano Sann- Cant I. . ................. ... 7,396 7.3%

I N .2. 215 .61551 131.1 04.03 15.110 91"s 10.M I'mI'Sn'"o 4s2.8N 4.387 S96.110 I'm, 4W518 11.4H 'Glue 414" 13,08,243,017 2o.s. . M2,0115 sees 910 C47,

9-C_ .a- Eaala Ge, aaalaa

. -Leas than S500.

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

-_ofnarr.....- ... .............F::u.Z *.;, .d,,V Is or n- oviiiionhe d,M, nx

E.-ter, dvoorcxsxo._ or E.s.- Arramit:All- Ple or N..a so ......... .. .T11`i 11 Rnlonsl ".11 OnnortirP.roxxxxi, Ststut"' N rx"..on.l. .. ... ............... I............. .

-includes quick assessmembf and ..sea transferred to Juatt- Department

Table 13-Results of collection activity(Inthousands)

Opening J-m.ry .................

pricesn ons ........... .. ... .. .....

coew I-ory,........... ......................

lueoro, of AIs,,tttx,1 Ttlu. Pemity and I.................

wf,,_-oream - .............

...................... .......Nvotiz om................... ..... ....... .

cxxi i-ory .......... . ..

compl- C_"..a.- .............. .......... ............... ..................

I. ceepIcnint, lit-itttiti

N. IE.--r A--W.sx: F.. I I. U. Fri. ............... .......

L,my SrxII Uion IIII'd ftirriN... of Rnaxemy useir - .I ............ . ......... ....

'Data revised fro, previous annual report

Ill

2,273032,M3912

0790

sa 919

IN2.3M2149

i~072$2,912.774

112

, 'no

,~179 N72790

5,10.5072.179 2971.997 w

78 737

11111410

1:172

,4`42.272

1,2N0.630,892

13,

In

~ .1De, mn,y 1.OM.171 222,165 129,660 4a.s35 900,521 173.3211E-oxe Tit, ................. .................... ... 3.914,428 3460,13 174,116 W.071 3.740,312 315,972F,oun- Pit, .... ... ....stx,cr.i, __ ..........................

... .... ............. 4.93ffn 147.211 ~,956 15.109 4.4011,264 131,375I ......... . ... . ..

127,142 1 .. 3773 214 12~1,369 o

F... ..... . ......... .. .................... ... ........ . .... 5,115 N 932 311 2.511 7,834 X111NNI,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 lic_.a.

,

--n Y ........... .... .... ......Esr. I. lr,~ . . ..... ...... .. . ........

.................... _ 119- 12A M2 22,ND 92,197 97,080 32,4U~. I~ ............... 235.910 89,672 26.01b 27.032 2011,915 wNo

FO., to Pay . .......... _ ............ 201.778 56,985 55 pas 42.389 146JAO 24.595F.-I Tri. Nee.1, .......... .... 11 to 1

1 toto

Bod c .1, 2,41 ft 1 &1 . 2,2150 41Fx- 15,811 26 371 526 15,437

4 NMI ~,877 83 65 3,11a, 4,112125 3N

12 327

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,271.,.or art 2(e all 128 2113

78

I'si-to Pay. ............................ 2 M 013 90,780 436,410 20,4161 2,1%.603 (3.319Fixtinl[ Tax pettiest. ....... 1.111~~71 46o,:39 25ell. 'a5ew 2,755.819 MI331BoJ ii _ ............

130 13 .7 2.300 77 125,210 1,570

Paod;._.... ........... .. ................... .. ..... l5f 2,630 1., 225 1.406 2.405Orn.. .............................. .......... 157 55 a? 5 . ?a `0

Toft, . ......... ............................ .................... T.91nfW 09,4T2 NI,5* 173,145 7,10,011111 NiIlI

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 -2,477F,elun, to fty '' .. I.. I I.. I .................................. 254.203 5.032 57,511, 2X3 196667 21659F-I

TiuD po,h ........... ........................... um 9.979 ~ 679 2.655 4%641 7,323Sad

r3,572 21 19, 2 3.381 19

. ........ 67 Its I par 972 568on., . ............... 87 40 11 76 4oT-I~ _ ........... . 1113,11M 61,076 10,70 Q.m $70.073 .,3.3

Etu,fi, of Calliff'on Spw S.189 39,258 12,8319 It,U6

.-I to 141

2 12

Fort.,. to .......................... 21.115 23,193 16.1,11 7.m ipiq 5',ii,tutBel c,-r ... ... .................... .. .. . .... .. .25 68 69 30 31 38

27 3222;

32"gl', 37............. 47 12 43 25CansI. ............................... ................................... .....1-1 .............. ... .......... ..................... 1,11.70 121,10 "A. M,41115 I?,-lfl,em, lintftInti ~Imtlty I

1.1- 10 Sign end FWU. to No.. I. Identification W.- .. .............. 25,529 3,l 24301 1985 1,228 .11,59.1 NitI,-Nt,,w,n,y .................................................... 1 D3~ MA25 25 230 131N n.D75 n.321F,Ilue to fty ................................................... ... .. .66 2.15~ U.OM I.5W V.406 1.0%1Bed C~ . ................ .. ... .. .. ..... na w 2 (IMF ............ :::::: * *

.. :: ~::::: :::::: ~:q.:::::: :.:: 3~ 9 n 9........... ..... ......... III.- 21.o 6.6% "'m 10,781 17.185We o:M fiff.ars 2"1.

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

Abatements ca;~ppry to any tax year,.

L.. them55 .

.hp~ud`Ta,l Identification Number, failuoto report tips. miscellaneous'mcudes Forms 1120, 990C and 990T.

Ittricludes Forms940. 941. 942, 943.nd CT-1.-Includesneghgenceam ast-tedt.,5 Includes

Forms

1041A~i5227. 990PF. 4720, 990. 4638, 2290, 11, 11B, 11C. 720 and 730.

- Includes negligence, 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.

74 Table 1S.-Appeals Division receipts and dispositions of cases not before Table 17-Requests, for tax rulings and technical advice (closings) 75the Tax Court (nondocketed)

a-

P~rvorti ooope, I ................... -Rsoy-DMP~

..p, . , ocM, mploy~ Oneaff--,=........... I ............. I I I I I ......................

By tax,e,, ,ov- an aut,oxy -111 ..............P,tJteril- o,in --Cours,,l ......................

o..' ko-oo, 30 ......... ........ . .......... -

a. -

Seou,

dopo,,~,o o...... ..............................By qy-rt . . ......... I ... . .. .. I . . ..................... ...UhNysso(ft,O-mxxscla-xcsi rotplenvin andoffer-rvares,'e'.t.m)... ................... ............ ............. ..................... .. ......8,_.,r dlltut on ninuory .11- .........."_

filw, to,af-ed to coxnel ..... ........

Okme-of000,.

P---Y(1) (2) (3)

'23,227 5,062,7110 168.88142.= 3,M1.317 70.-M, 19 2,301,M2 5%wa30.611 .M= 52.123

1,5'a 3800) 1,2692,097 1161291 1'acs

4 1 491'149.417

26,928 7.392,M5 180 205

c-. OndP-M

(1) of

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

(3)

38.619 1113512n 209 11630,611 579,138 205,821

1,510 37,003 1.21P'Ol:172!17 21 Zw

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.

Table 16-Appeals Division receipt and disposition of Income, estate andgift tax cases petitioned to the Tax Court (docketed)

A. Preia-

Rao.

I .......... - - -

='Z's"i............. .

uxN'W ...mild 1. 1 ity. lumisoUixtP...'sw=30 1 ........ .......... ... ...

0. nOtoo.obbo- .61~1-

arae- ot,=I .. ........................ ....-U, :: : * ,

D ........... ... I...............dur.,-. .... .............. ........... ...

noso, (in

'Humb's, lidlow"c" OW.c-. Ovidw "Y

(1) (2) (3)

-9,324 l.M6.574 15AS

;;:'317 1 .199 eN2

W 482 5.1845.7% Miles redI'Mr, 14. 86 251x465 601,206 4,7739,119 1304.591 11.494

Apo-

'O'embO, DOllot- UvOy-c-' red

W-q(1) (2) (3)

11, 13an3 3.3625796 52 623 3,305

091575

14 465 372.355 M

I A case repreNnts taxpayers grouped together by tax periods with common or related issues that may be heard and

disposed of together..Data revised from previous annual report,

soo)-

To., .. ~.. ... ......... .. ........ ... . ........... ............. 10.353 Z24311-1 -sr ....................... ... . .. ....... ....................... 2.923 2.895 28-- 0,-nil-. ... ... .... ...... .... .. . ....................... .................... 4,276 3,1yW 322Envol,,es, Pl- , , - , .. ........... .... .. ......... .. ........... -, ................. 3.1. 1.261 1.893

Table 18-Determination letters issued on ERISA employee benefit plans

lha~sen. Porolv- looming ~Solx Tire,

I-W QvuOO-.:Q.. ".. ........ .. .. . ........ 471 18,115 27'.. Is a 46,311 111853 (14.167P-apainEnnio" 283,1M 176,892 MW 'S.N5 11 1209 M7 1,M7,866 2,746.903W, Quo"Isd 2 10 13 0 0 25 12 37

0.11.. .... . ..... ty~ 19,197 37,573 M 2 57,822 ~.294 92.116.1 oh,eyow . . ... ........ . .... 0 1 11 0 0 12 t 0 22T-ovd .:Qua ". .. ~~ ~ ....... .... ...... 37 2,737 5877 0 0 8.65, 3.S`6 12,59,..' QUMf.. . ........ 0 10 16 0 0 26 9 35

Table 19-Number of returns examined by type of exempt organization

Fir 1080

(~)(3) ................... lon-1. F.unaa- ................................ ........................... ...... .. ................ 3913~. -1~tu- T-1 ............................... ................ .... ......... I I I. II - - ...

cX3) .1 Othisr. ........................................ ....... .................... ................. 8..

~'c XS~ =r"29g-, sooW .0 3,3217

1,1xxt-.. ........... 1,25501(cX6) 8- Loagm ................ ......... ............................. ............... ........ 1..98

7 ............... Se -ndROcnoa-Gl.M .... . ..... ........... ............ 1.60850 (CX )N, 0',. .......... .............. ...................... .............. ...... ......... .......... 2,527

U1 Form-' Cooloynav . ......... ................................. ............................... ......... 575T-1 ~.. ..................... - ............... . ........... ................................... .......... ........... ........ I-

76 Table 20-Number of active entitles on exempt organizations master file

C-nu.. Ong."u. urx., t 0~-_ ..~ . ...... .... .. ............... .... ..lifthoO, Cap _... ................ . ............ ..... .. .. . . . . . ... ............. .

(3) .1............... .1 .. ...... ........ ............... ............ .(4) S-aul ..' ... ..... ............ .... .......... .. ..... . .m

Labor, Agn:unwe Dgarizat- . .. .............. . .. ......... I. .......Is)lksxv,s,, L.9a.

(7)S-lalur R-ranclu . ......... .. ......... . ... . ...... ..... .................... .I'l-mal S.'_ ....... ......

(10)

"- F"'. -C............................ ............... ................

JIIjT--RM11=' ..... ........(12

L"

)

Cia,aa c .. "". : , .~ :(13) . -1 . ..................... ........(1.)Chou Un... ..................... . ..

pl~ In, I-,,n,,C,,Pal in, ...... . ...

card0 Firanc, Crop Domisle, ..

(17)S.P-"aUn-x-.ft.ftTnvsx . . ...................nf)Eneo`.FurdWP,esanTnru .... ............. .... .. ...... ... .........

(19Iwary"..'s,011ruba. ...... .(AnL,.l

" -OT-7(21) li, LUZ11.1 ... I. I ~ -1 ...... ..... ... ..... .......501(d) fux,,avi, .. Akiaald,. ftent.h.,121 Fl-.s

C'

.1-

T-1 ........... . ............. ..................... ...........

191. I'm

110 125,324 5.2,58

-W,I 315 -31S.-127 2~ 129.5~385,479 85.77446 WO 48,7175d577 51,922

13z4I7 137,4491,122 7,7M

16,525 16,17810 12

4891 4,.55,752 ~.w

7

5,119 5.6391.312 1,110

26 2279" US

3 422.210 22.24711 S

3673,312 2,985

-.1. sia"In

'This figure does not represent a true universe of section 601(cK3) org nizabons because certain organizations

Such r; churches.

their integrated auxiliaries and conventons o' associations of churches need not apply for necog.hition of exemption with the IRS unless they desire a ruling. When issued, the ruling letter goes to the central organ,

"ition but covers all subordinate units. Only the centrat organization is on the EOMF where it is counted as one enti-ty

Subordinate units considered nonintegrated auxiliaries are on the EOMF and in the above figures since they maybe required to file in;olmation returns as prescritied under IRC 61033,

Fiveappli ations or exempt status under IRC 501(CX21) have been approved and witl be included in the active

entities on the EOMF after processing.

Table 22.-Intemal revenue collections, costs, employeesand U.S. population

op""(1)

1951 - ................ 245,80),5381952 .................. 271.872.1%

.......... M.590805. ............... 2R.M,107

INS ............. 27S.M278INS 2NAW,710

M5 ~7,814M7.428,781)

959 ~.469.228

Im .................. 363.735.3591961 .................. 413.M,2.~12 :.. ~ 450 080 4W

NKI - . . ... . 314I. .................. .9.692,1211

cx,,e~cxs~

$IN

77

"iart

W5,71 M1005 4,208 51.597412e2 56.209 3,~ 52.2564MM W.40 3azu, 19.64?s.21 09 51,411 2.707 48,704

M so Kfaq 2,M 0,215.4.71 50.692 2.W 48,M'W 16 s"N" 2.5V 48.=457,33 0.616 2.909 47.907-3 s'226 2,11,69 0.257

507.96 51.047 2,910 48,13751391 M~206 3..2 sol.~ 09 56.481 3,401 .'M55934 ~'711 3,657 KOU5Z6,03 SIAS "IM9 57.220

55-17. 71 114-,SXI,7z1 o. 1.,.3 Seas,624:86 9n 128,8111 048 191 mm6670802N 148 374.814,- 0,45 198.712 74669

INm:1903b, ~1.363,837,sss 04S 200,706 7M48

IN. 758 785 475 187.919.559,M 040 202.677 927.19

T"886,151162 195.?22.M,497 045 MI 878 955 31

19721 M17,065 297 191 6,17.196,1111 05, M7.M

12 390411

20985 73158711 05" MailW50

1973 1.162,009~45 M7:787:~,1974 1.312.!M~661 268,952,253,M' 00 2; 01:9'01" ~: ~1NO,211'

58u,.-As 293,822,725,772 0 5' 213.M9 1.375,U

7'667311 09: ; : 302 519.791.922 0,56 215142 1.41)[5,141971

.1,zN:M7M W'13 416.730 0150 217,329

11.;'1 -1,962.129:287 3199~r9 1.362 049 219~033 1.826 61*2,116.166,276 4Sd.I

5"38

lead2.

'783:0130-6 220 999 2 M 32

'Z2150838.&W 51%375~2 3610. 2MM 2~M.

ii,li,,l~,~,~lfC_led Sia,lara,

-This igure represents actual IRS operating costs from FY 1975, exclusive of reimbursements received from other

ciguednec:reesimfdasseZicentsisp,tehrfoosiremaemdoW

urhislastheesompa I

Iratn,ngdcmh

to It agluters st heorcf

aisclshgtueraer!

ipn rcioorl

u om In

9375 may in som e case 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

IRC~"I(C)App- Dilislial T-1

~21 ~ cumat-&px- undiv ftt at C W- .. ~ .. ................ 1 2 z(3)'hivieIII, Cora, ~... ....................... ....... 290

A09-7-saft. "IC ............. 264"

1107 7".S~xsl virrala, . ......................... ............. . ..... 2.4.2 K M 3,5=19i.abx, AWicultar, Org .......... 411 21

"i`-

L1.1a._ I

. 31'.7

(7) Se,xxI .. ll.nahx~ C1.Of ......... ................................... 1,322 172"1

2J83aa"... f-wit.. ................ ..... ............. ............... 19 S

42an

vaunum, E"

. ............ .. ....... ..... ...... ...... 6M 7 679(10)Dowes, Fal-I ~,.". ................ 18 52 1 N(11)

7.-'- - 1

(12)Sin-rit etlnwr-~. .............. ..... .................... ......... 114 23 76 212I3n

C-7221 6 49 263

(14)C'emitu"ax . .......1, 1

isV5)M_ In, Cxx,-. ................. is 2 4 24~j76~CM.t1F,unC,Cr,p0mna- 1

1

S.W--.l Ji,ar"ethent litheld Trasts .............. ............ 55 57(1s)

E-Fur- P-Tralf ... .... ......... .................. 1

(19) inims'Orip-ohn, ............... 29W-M-0,galuAtern, ............... IS12a) Lilgin S 2 11

(21)SaCkLvngTr,zs . .............. .................Solid) ftelrtolK SM Rll~ioxr agInuafton, ... ................ ..........50 in C- Sennex, On, of Claina,M Ed-tonli OM 252~ F.- Cx.-wis .. ............... ........ .. 69 11 22

1022

Mlenai Ofte AWIngs IW Dnenanaso, Lesm ................................ 2.M7 276 1131 3.964

ani lit. ................... ............ ............. ............. M'M 1.91. Mill .1w

I Applications withdrawn by taxpayer. incomplete applications, etc.

Apleii,erstai, by lusher

Trw el, .............0 la.I -nated I. .............................

5lbasi siniff E-'T-I ............Ei.-Dn- ............nl-l ~xn a ...................

T....1 Ruling. a. Sv... ................ ..... ........

~- luitar,,f,................... . ..........

G.'s ~ ex

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

Ebanelakila, ,el Appiual:1-1 .. ............................ ...........................E.-on , .................................Apai ............ ................. .........

TW Fna~ 1~' so. .............* *.................d.,aa,'_ .

Eni Plem;i-snixt

-1 ....................................

T.W

T_ libleafullO'l

(2) (3) (4) (5) M (1)

W."5,686.315 0.9 1 P, Sze012 157,5530 M 160.1"ow Man

.288 02.000 042 165,93175.112,6,19.11M 040 168,903W.171.917.000 0 M 171.913,79,978.4764ful 042 1.,1111279,7117.972.805 0. 177.830

91 zrAfA2.823 040 1 %s6710 " 180,01

W00,W9,245 045 ISd5M1.,925,395,281 017 issM112,26),257,115 049 191.889

62.zas 3.881 ..217M'508 3,982 59,526...6 3.- 62.052U.574 3,1167 63,607M.Da, 3.862 62.202

68.6113 4.103 K5110cl ".358 PI.614M.99 4,1214 64.415?1,170 `= 69.666M.921 4.310 1.61,

af,M9 4.5411 77,8N84,2U 4,732 79,5320,743 4.~ 75J4985.329 4,919 50,410.10 x. 78 a,".87,

X5,114 82.350

torrill flin non IM 1979 1140

2,~E!1271 2291, 6'

I 1l4"M "'i2. 16:1 66 2.280"Wit !:.'23'1

':1...5~1 4774935 49,1,288

1M.11" MUMS 115,754 MAN MA28 21.1110,1112,977 10479 10.2N 3.,P`5 2.743

31,169 335"') 25,842 28.357 5'M7 5.49220~31 23330 15,891 15!411 1~417 4:14S '21 :M 76 46,

7 S 14,

22.501 24.031241

18,970 M,583 3,~ 1.8

732MS 787."$ 01.982 533,0811 _'M M1198521,937 5as 281 M2.605 126.01 1251 142.80713.3% 14898 11,239 12.422 2.151 2,476197,612 M,W7 KIM ii 113"IN 1091515

M,M3 639AT M3,31115 M" 126.711111 IM.M719,568 779.637 598.932 651,975 120.G36 127.W250.525 59.750 44,453 st,"Is az72 s~

47.,.2 sn'li 331.1. 421jiss "no 431"SIM.185 140.01 106.179 116,732 24,006 23.NgM 613 297 N7 men 248 305 .9,793 11:12W,. N:963 K

107

Mile 10M7 to I.

7'IM 10.037 SW 8,57. 1,069 L35S

78 Table 24.-Continued(in thousands of dollars)

Table 24-Costs Incurred by the Internal Revenue Serrice by office(in thousands of dollars)

Internal arref, fatil or regionretail Travel Eq,aWmart

A. Total Iniameal rather- Seakor ... - ~... , , -1,1a-l 011.. .................. .... ..... .. ... .. . ...N-Atert. ........... .... - -1,10-Mla- .......... ........ .. ........ ........... ......smm.ae .................... .... ............. .. .. -central .............. . ....... - .................... . ...-ral ......................... ......... .......................S.lh. ............................ ............vv. . . ........

................. .... .......011-11m mal-10caratenit- .. ............." ~-,,rcam - ....... . .......h.ce.c.l. .. ......................

dlazft~ driecara'earifee-)

An, .. .. ................... ... .......M,a-~n.ntri, ..........So.t. ...................... .........Ca-1 ............ 1 11 ............... .1, ~-*.- -m.w. ............. .....................-I ............ ... - ................ ..wirs,am ............. ............... ....................... . ..

C learelordare,--and-ea-lea'ah- ;aftbany .................... .................. ............. ...................

Eloston . ..........Brooklyn .................. ... .... .~al . ......................... ..............B.n,.. ..................................mlord .......... ............ s si:~Man .... ........................Porter-1, ................. ..... -... ........ .... .......... ....-Al-r. Camml- lanN-Se- nt.r ............... ..

11-khave !k-eC am er ..............arial 1.aon-N- .... ........................ .....

....... . ....... ....R-u,h ... .................................Fiv,h-al ... ............... ..........wiah,,g-

Fivoor-Centrill- T,..W ..........................Fibred,lP.. $a-. Gan.. ...........................

&-.g. . ................. ............w... ... ........................ ... .G.. ... . ........ .. ......................Jack . .... ................ 11 1 ::

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

.. ........*..*Aoa.ta Sahroa C-11 ............ -m-ni. serv. can... ............... ........... ......... ...... .

central:0-nnat, ..........................

Dethat ........................wav,sw . .................. ...............Lo,aa,iil. ................................. -P...-r. ................... ..............central R",01C, valizes! T,an,n ....... ..............Q-1-1 Sa,v.. came,

(1) (2) (3) (4) (s)

2,2111,T76 1,725,130 61,781 nlm 412,M"0,09 1408W 1210 ISM 279.976209.250 28205 5737 727 M.151206.605 188'(Ss 5007 52, 12.381241.519 212,873 8305 1,085 19.256185.03 165,.' 6,09 w 12.W-,472 M.95" 7,6916 63, lZ21st220309 195.555 9,019 674 15 061M9 052 .1,813 10,851 1,713 z- M

35, 11,252 4M 4W 1 M26. 13 21,.8 i.w 57 82217

13 929 U18 131,~'118 8377

11w .1Z

M.M 213,199 Its S3 5.714

0119 18200 45) m 63;3.794 367 Sit w115,4118

.1111,82 2.Wu 717

as. 12,521 653,3's 895 '319 '.'7'%7

21.5m 18.172 1,215 112 2,06,

211 ~6 613as I as 225 a 223':2

3512 32,179 890 106 952U~(M 32,701 5't M 365M,166 1633't 672 29 11,31,

2:,171 2. 13 1 U 7,7

"

1 S

51665 M .5

66.59 63 915 1 M 1 r8764 14; M7.6 V 26

2275,907 43776

is 21s2M 2.

-2

.1,296 36,35li,

Z5 146 1.65946,527 40.731 12~ W 5.573

n~ 17~ 27~ 717? '.7.5m

"12 1,2.

SIt

33751 31,767 121 163 6,0s*5 43 755

41, -M 42 1,1674 10; 3,172 126

1196zal

1771

24 2S

U7236 -

i

41 - 36.Sii117 21 ".9

25,1. 1,371 79 2.NO12773 11 .60 613 7~ 5,8 a78 U27

..3 32

M 240 111.350 1,024 63 W38~142 7,239

5230

3'041:1 11:122 2 1139 121 2.-jilUs

"904 w M 758

2M -25,t

1043.337 37.721

1'391 5.126'0

3`9 X366 17z lu 4.677

M 922 19181 771 26 E)44.0 3 ~:l21~7121 1.6313 1 79

2000

7. 44 2.072M 171 17M, .1

M I~383

12MI1

621 7. 25 5927419 6,U5 44

4421

293 - 21)2 14.1177 ~ 267 163 Nis 5,2(h

I- -.. offee. di.efol . .0.

aaa-a, ij. .... ..... ... . ....... .. ..... ... ...... . ..................Chrorig . . . ....... ........... ...... .... -... -- ..................~ ..n . ..................... . .... ..... ... . . ... .. ..... .... ..

... ....... ........... ... ..... .... ... .......................Mil-e. .~ ~ ...... ............ .... ......... ........ ...... .ona. . ............. ......................... .................. ..........St. L... ............................... ....... ..............................St. Pair ................. ....... . ......................5-1,ald . . .... .. ................. .. . . .... ................ . ...- nep~rlhf-d T,-.. ... ......... . - ... .... .............fares. 01, Se- C.- ... .... ... .. ........ .... ............Se-

A.... .......... . ..........A-n ..... ....c. .. .......W- .... ........ .............. ............Den, . .... ...... .... .............. ................... .... ......... -Us. R.k

on- . ...... .. .. . .............o-0- c ty . .... .... ........... ...W"hris

:. ... ...sa-ti, 1 n,NAvi,t,, Sf- C,m .. . ...... .................... ...........

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

HH-1. ...............

Phaa- ..........................P- ...... .... ..R. ............................. ......San i-ar, Cr, -- , - ..

:San F-C- .. .. ...............sal. ........ ... ............ ................................ ............Yvaere, Ra,,,~thilarad Training . .. ........pg_S'_Camri'

Note: Re-b-arnents are mcludedm the above fig,res.

Table 25-Personnel summary

T-1 E.1-1

79

offee,

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

3,157 2.992 301 8 15653,0al 49,585 1.30 U 2.US12.470 11,308 W3 2. 5313,321 2,855 281 1. 171

17,031 15669 Us 40 M8,127 1,261 456 19 391

2S9SB 21,61 a 1.226 95 1.02321,610 19,75a ".. 47 112513,732 12,311 119 29 673

255 2- 147 w 42,Ui

1~40 151 ..03

I Us Us 12 21,Q,376 36 56 1,96a 91 865

Z752 2

.313 M 7 14237871 xwa 1.. 2.15,15.985 11281 762 N 922

8,989 4 4N533m 36 800

;,.;,21 3:131 731 31 (33611

4 a(4t) 53 9 528

am 314 2649N6 42.791

2'a s';as

1:97~O':3%

. a,1 1

..107 3.5906,170 5..3

78.88 71.869122.200 ~1.17ol

547 .'?

8.18, 7.1155979 5,460

53,280 48,50620.DD5 111,0116

37348 360 41,606se

851 49.7.11

-ii Peartlone --.Y-.realized cleateal,eer

Behaae aefel ........... ... ...........................................................F,emaihe . ............................................... ................

RW-1 draftees ~ .................... :.............. ...... .....................

.................. ...... .... .......................Ortre . ....... -- ................ ............

Tar,pai Sani .........................T..,, sah- S-1.. ......................................................T.- Se-.. Rion-all,. . ......................

R-u. AmaT. =-.other ........... ..... ......... ..... ......

before, ..................................... . . : :::*: : : ::

Othi .......... .....Apteel.

1 . ............. ................Om .............................

......................... ~ I. I ~I I ~.. I...........S-*1 A. ant, ........ .. ................Dil,. .......

.........................canitharbred sen,eara ...........................Rea- ce,aaae, - : :............... .................lt.,hi,ral hitea. ..................................... :::: ..........................

ran ffeal

"' - 1 '363

31S 211 z,43307 16

19a

251 28 2182,887 215 3,51,

529 5311SES 32 171w M262 23 23a

1,917 213 2,641961 6, 91,30 -212 5, 71led

21.s'IN

'In Im

"me I&WO ".311111, ".a"71,117 72,513 71.771 70.MIs.. 15.497 13,627 is'.93

,.a 1 6,1" 4.03 ..97."'B" 02.M ,?m $1,41141

27.41 .1M `514.'am, 9,03 10,01 11.1.2,

767,

5`2 w1~300 4:390 U2" 21:72

74 074 4.05 at633 67, 666 665

1.05a 1,070 Mae 1.013~041 3 Zfal 3'"55.

91

,23, Mull n,,e

13,715 1373 13,N7 13,5814"U :59 4'M 1.4594.?M

5,

W6 15.125

M62,

A70 11

.4271.2m ..T

"M217 235 250 21,1.." 1.7311

- 128 121 129$13 721 ni 7W

"M 3,404 a'- 8132,:786 28M 2.M 2.782

OU

,:wi

I

MT':.1,3.1

3."'

adea 3a

4,"1

4 1" MW41". :,4. so 1:10

.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

60 Chronological List81

Commissionersofinternal

Revenueand Acting

Commissionersduring

transitoryperiods.

George S. BoutwellMassachusettsJuly 17, 1862/Mar. 4. 1863Joseph J. LewisPennsylvaniaMar. 18, 1863/June 30, 1865

William OrtonNew YorkJuly 1, 1865/Cct. 31, 1865Edward A. RollinsNew HampshireNov. 1, 1865/Mar. 10, 1869

Columbus DelanoOhioMar. 11, 1869iOct. 31, 1870

Alfred PleasontonNew YorkJan. 3, 1871/Aug. 8. 1871John W. DouglassPennsylvaniaAug. 9, 1871IMay 14, 1875

Daniel D. PrattIndianaMay 15, 1875)July 31.1876Green B. RaumIllinoisAug. 2, 1876/Apr. 30, 1883

Walter EvansKentuckyMay 21, 1883iMar 19. 1885Joseph S. MillerWest VirginiaMarch 20, 1885/Mar. 20, 1889

John W. M sonWest VirginiaMar. 21, 1889'Apr. 18, 1893Joseph S. MillerWest VirginiaApr. 19, 1893,'Nov. 26, 1896

W. St. John FormanIllinoisNov, 27, 1896/Dec. 31, 1897

Nathan B. ScoffWest VirginiaJan. 1, 1898/Feb. 28, 1899George W. WilsonOhioMar. 1, 1899/Nov. 27, 1900

John W. Yerkes,KentuckyDec. 20, 1900/Apr. 30, 1907John G. CapersSouth CarolinaJune 5, 1907/Aug. 31, 1909

Royall E. CabellVirginiaSept. 1, 1909/Apr. 27, 1913William H. OsbornNorth CarolinaApr. 28, 1913/Sept. 25, 1917

Daniel C. RoperSouth CarolinaSept. 26, 1917IMar, 31, 1920William M. WilliamsAlabamaApr. 1, 1920/Apt. 11, 1921

David H. BlairNorth CarolinaMay 27, 1921/May 31, 1929

Robert H. LucasKentuckyJune 1, 1929/Aug. 15, 1930

David BurnetOhioAug. 20, 1930/May 15, 1933

Guy T. HeleveringKansasJune 6, 1933/Oct. 8, 1943

Robert E. HanneganMissouriOct. 9, 1943/Jan. 22, 1944

Joseph D. Nunan, Jr.New YorkMar. 1, 11944/June 30, 1947

George J. SchoenemanRhode IslandJuly 1, 1947/July 31, 1951John B. DunlapTexasAug. 1, 1951/Nov. 18, 1952

T. Coleman AndrewsVirginiaFeb. 4, 1953/Oct. 31, 1955Russell C. HarringtonRhode IslandDec. 5, 1955/Sept. 30,1958

I

Dana LathamCaliforniaNov. 5, 1958/Jan. 20, 1961Mortimer M. CaplinVirginiaFeb. 7, 1961/July 10, 1964

Sheldon S. CohenMarylandJan. 25, 1965/Jan. 20, 1969Randolph W. ThrowerGeorgiaApr. 1, 1969/June 22. 1971Johnnie M. WaltersSouth CarolinaAug. 6, 1971/Apr. 30, 1973

Donald C. AlexanderOhioMay 25, 1973/Feb. 26, 1977Jerome KurtzPennsylvaniaMay 5, 1977

Office of Commissioner of Internal RevenueCreated by Act of Congress. July 1. 1862

In addition, the following were ActingCommissioners during periods of time whenthere was no Commisssioner holding the office:

Joseph J. Lewis of Pennsylvaniafrom Mar. 5 to Mar. 17,1863

John W. Douglas of Pennsylvaniafrom Nov. 1, 1870 to Jan. 2,1871Henry C. Rogers of Pennsylvaniafrom May 1 to May 10, 1883, and fromMay 1 to June 4, 1907John J. Knox of Minnesotafrom May 11 to May 20, 1883Robert Williams, Jr. of Ohiofrom Nov. 28 to Dec. 19,1900Millard F. West of Kentuckyfrom Apr. 12 to May 26, 1921

H. F. Mires of Washingtonfrom Aug. 16 to Aug. 19, 1930

Pressly R. BafdrIdge of Iowafrom May 16 to June 5,1933

Harold N. Graves of Illinoisfrom Jan. 23 to Feb. 29,1944

John S. Graham of North Carolinafrom Nov, 19, 1952 to Jan. 19,1953

Justin F. Winkle of New Yorkfrom Jan. 20 to Feb. 3. 1953

0. Gordon Delk of Virginiafrom Nov. 1 to Dec. 4, 1955, and fromOct. 1 to Nov, 4,1958Charles 1. Fox of Utah*from Jan, 21 to Feb. 6, 1961

Bertrand M. Harding of Texasfrom July 11, 1964 to Jan. 24, 1965

William H. Smith of Virginiafrom Jan. 21 to Mar. 31, 1969

Harold T Swartz of Indianafrom June 23 to Aug, 5,1971

Raymond F. Hairless of Californiafrom May 1 to May 25, 1973William E. Williams of Illinoisfrom Feb. 27 to May 4, 1977.

112 Principal Officers of the 83

Internal Revenue Serviceas of September 30,1980

National CommissionerOffice Jerome Kurtz

Deputy CommissionerWilliam E. Williams

Assistant to the CommissionerMarvin KatzDavid F P O'Connor

Assistant to the Commissioner(Public Affairs)A. James Golato

Assistant to the Commissioner(Equal Opportunity)Eugene D. Alexander

Taxpayer OmbudsmanHarold M. Browning

Assistant to the Deputy CommissionerDominick J. Lantonio

Taxpayer Service andReturns ProcessingAssistant CommissionerM. Eddie HeironimusDeputy Assistant CommissionerStanley GoldbergDivision Directors:

Program Planning and ReviewSuellen P. HampyReturns Processing & AccountingFredric F. PerdueTaxpayer ServiceWalter M. AltDisclosure OperationsRaymond L. RizzoTax Administration Advisory ServicesDouglas S. Ormerod

Resources Management

Assistant CommissionerJoseph T Davis

Deputy Assistant CommissionerAlan A. Beck

Division Directors:Facilities ManagementRichard E. SimkoFiscal ManagementJoseph F Kump

PersonnelDavid S. BurckmanTraining and DevelopmentOrion L. Birdsall

Securffy Standards and EvaluationArnold B. Gordon

National Office Resources ManagementHerbert J. Huff

ComplianceAssistant CommissionerPhilip E. CoatesDeputy Assistant CommissionerGlenn CagleDivision Directors:

AppealsHoward T MartinExaminationJohn L. Wedick, Jr.Criminal InvestigationThomas J. ClancyOffice of International OperationsJoseph G. McGowanCollectionJames R. Starkey

Data Services

Assistant Commissioner[Donald J. Porter

Deputy Assistant CommissionerJoseph E. Bishop

Division Directors:Data Center, Detroit, MIJames E. Daly, Jr.

National Computer Center,Martinsburg, WV

William E. Palmer

Systems Design and ProgrammingDaniel N. Capozzoli

Systems SupportDonald E. Curtis

Planning and Control StaffCarolyn Buttolph

Systems Development OfficeDean E. Morrow

Management Information Systems OfficeJohn Moundalexis

I

Employee Plans/ExemptOrganizations

Assistant CommissionerS. Allen WinborneDeputy Assistant CommissionerRaymond A. Spillman

Division Directors:ActuarialIra CohenEmployee PlansBilly M. HargettExempt OrganizationsJoseph A. Tedesco

InspectionAssistant CommissionerRobert L. RebeinDeputy Assistant CommissionerE. Derle Rudd

Division Directors:Internal AuditRudolph Arena

Internal SecurityWilliam E. Mulroy

Planning and Research

Assistant CommissionerRussell E. Dyke

Division Directors:Internal Management DocumentsAlbert C. ShuckraLegislative AnalysisRondal C. BlankenshipResearch and Operations AnalysisWalter E. BergmanStatisticsFrederick J. Scheuren

Technical

Assistant CommissionerGerald G. PortneyDeputy Assistant CommissionerVacant

Technical Advisor toAssistant Commissioner

Vacant

Division Directors:Corporation TaxJohn W. Holt

Individual TaxMario E. Lombardo

Tax Forms and PublicationsRobert 1. Brauer

Office of Chief Counsel

Chief CounselN. Jerold Cohen

Special Assistant to the Chief CounselRichard E. May

Deputy Chief Counsel (General)Stephen M. Miller

Deputy Chief Counsel (Litigation)Joel Gerber

Deputy Chief Counsel (Technical)Lester Stein

Technical Advisors to Chief CounselDaniel F FolzenlogenPeter K. Scott

Staff Assistant to Chief CounselJames T Fuller. III

Division DirectorsAdministrative ServicesJoseph H. HairstonCriminal TaxRobert P Ruwe

Disclosure LitigationVacant

Employee Plans & Exempt OrganizationsGeorge H. Jelly

General Legal ServicesGeorge J. Shaw, Jr.

General LitigationJames J, Keightley

InterpretativeJerome D. Sebastian

Legislation and RegulationsRobert A. Bley

Tax LitigationJohn H. Menzel

84

I

Regional Central Regionand

District0ifficers

Assistant Regional Commissioners:Taxpayer Service & ReturnsProcessingPatrick J. Ruttle

Resources ManagementBilly J. Brown

ExaminationDonald L. Stewart

Criminal InvestigationRichard C. Herman

CollectionCharles F Jones

District Directors:Cincinnati, OHDwight L. James, Jr.

Cleveland, OHEverett Loury

Detroit, MIRoger L Plate

Indianapolis, INJames W. Caldwell

Louisville, KYPaul F Niederecker

Parkersburg, WVT Blair Evans

Regional CommissionerLeon C. Green

Director, Cincinnati Service CenterJohn 0. Hummel

Regional CounselVernon J. Owens

Regional Director of AppealsClaude C. Rogers, Jr.

Regional InspectorJohn E. McManus

Mid-Atlantic Region

Regional CommissionerWilliam D. WatersAssistant Regional Commissioners:

Taxpayer Service & ReturnsProcessingVacantResources ManagementAmerico P AttorriExaminationRegina M. DeanehanCriminal InvestigationWillard M. CummingsCollectionLeroy C. Gay

District Directors:Baltimore, MDTeddy R. KernNewark, NJCornelius J. ColemanPhiladelphia, PAJames T RideouttePittsburgh, PAThomas L. DavisRichmond, VAJames P BoyleWilmington, DEF Clare Shy

Director, Philadelphia Service CenterNorman E. MorrillRegional CounselDavid E. Gaston

Regional Director of AppealsJames J. Casimir

Regional InspectorBenjamin J. Redmond

Midwest Region

Regional CommissionerCharles F. Miriani

Assistant Regional Commissioners:Taxpayer Service & ReturnsProcessingJohn AderResources ManagementJack E. ShankExaminationDavid G. BlattnerCriminal InvestigationCharles 0. WeyCollectionAllen G. Woodhouse

District Directors:Aberdeen, SDThomas J. YatesChicago, ILDonald E. BerghermDes Moines, IAJohn EdwardsFargo, NDGary 0. BoothMilwaukee, WILawrence M. PhillipsOmaha, N13Mitchell E. Premis, Jr.Springfield, ILIra S. LoebSt. Louis, MOVacantSt. Paul, MNC. Dudley Switzer

Director, Kansas City Service CenterRoy D. ClarkRegional CounselDennis J. FoxRegional Director of AppealsDonato Cantalupo

Regional InspectorJohn T Kelly

North Atlantic Region

Regional CommissionerCharles H. BrennanAssistant Regional Commissioners:

Taxpayer Service & ReturnsProcessingGary H. MatthewsResources ManagementWilliam H. EtheExaminationJoseph SlipowitzCriminal InvestigationRaymond C. TurnerCollectionRaymond P Keenan

District Directors:Albany, NYJohn B. LangerAugusta, MEJohn J. JenningsBoston, MAHerbert B. MosherBrooklyn, NYThomas P Coleman

Buffalo, NYMarshall R Cappelli

Burlington, VTGeorge Delegianis

Hartford, CTJames E. QuinnManhattan, NYPete J. Medina

Portsmouth, NHFrancis S. Miceli

Providence, RICharles E. Roddy

Director, Andover Service CenterJoseph H. Cloonan

Director, Brookhaven Service CenterThomas J. Laycock

Regional CounselTheodore E. Davis

Regional Director of AppealsGerard R. Esposito

Regional InspectorDaniel Schiller

E2

861 87

Southeast Region

Regional CommissionerHarold A. McGuffinAssistant Regional Commissioners:

Taxpayer Service & ReturnsProcessingHenry E, Leech, Jr.Resources ManagementCarol M. FayExaminationPhilip J. SullivanCriminal InvestigationAnthony V LangoneCollectionConrad L. Clapper

District Directors:Atlanta, GAMichael J. MurphyBirmingham, ALDwight T BaptistColumbia, SCDonald L. Brei:hanGreensboro, NCRobert A. LeBaubeJackson, PASMerlin W. HeyeJacksonville, FLCharles 0. DeWittNashville, TNAlvin H. Kolak

Director, Atlanta Service CenterWilliam B. Hartlage

Director, Memphis Service CenterJames D. Hallman

Regional CounselJack D. Yarbrough

Regional Director of AppealsTully Miller

Regional InspectorDale W. Gardner

Southwest Region

Regional CommissionerJames 1. Owens

Assistant Regional Commissioners:Taxpayer Service & ReturnsProcessingBobby G. HughesResources ManagementRaymond AsturnianExaminationPercy R Woodward, Jr.Criminal InvestigationFrederick L. SleetCollectionLarry G. Westfall

District Directors:Albuquerque, NIMFrancis L. BrowittAustin, TXRobert M. McKeeverCheyenne, VVYMichael J. KellyDallas, TXRichard C. VoskuilDenver, COGerald L. MihlbachlerLittle Rock, ARPaul D. WilliamsNew Orleans, LAJack P ChivateroOklahoma City, OKCharles A. ParksWichita, KSKenneth E. Luke

Director, Austin Service CenterCarolyn K. Leonard

Regional CounselWilliam B. Riley

Regional Director of AppealsDouglas M. Moore

Regional InspectorPaul F Kearns

Western Region

Regional CommissionerThomas A, CardozaAssistant Regional Commissioners:

Taxpayer Service & ReturnsProcessingG. William GraboResource ManagementKenneth G. RivettExaminationElmer KletkeCriminal InvestigationRichard C. WassenaarCollectionPaul R. Dickey

District Directors:Anchorage, AKFrank R. BerrieBoise, IDPhilip N. SansotlaHelena, MTFrederick C. NielsenHonolulu, HIJohn D. JohnsonLos Angeles, CAWilliam H. Connell:Phoenix, AZPrescott A. BerryPortland, ORRalph B. ShortReno, NVGerald F SwansonSalt Lake City, UTRonald V. WiseSan Francisco, CAMichael D. SassiSeattle, WAArturo A. Jacobs

Director, Fresno Service CenterTheron C. Polivlka

Director, Ogden Service CenterDominic E. Pecotella

Regional CounselEmory L, Langdon

Regional Director of AppealsRalph F Albrecht

Regional InspectorVacant

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