INTERNAL REVENUE SERVICE 1986 ANNUAL REPORT

The Commissioner's and ChiefCounsel's Annual Report is producedby the Office of Public Affairs, Room1112, Internal Revenue Service, 1111Constitution Ave., NAV, Washington,D .C. 20224 .

The report is available from theSuperintendent of Documents, US .Government printing Office,Washington, D .C . 20402 .

NOTE :

Statistical data used in the text andtables of this volume are on a fiscalyear basis, unless otherwise noted . Forexample, data headed "1986" pertainto the fiscal vear ended Sept . 30,1986 .

Graphs, charts and text figures havebeen rounded and may not computeprecisely compared to the statisticaltables, which are based on unroundedfigures .

I

INTERNAL REVENUE SERVICE 1986 ANNUAL REPORT

I

TABLE OF CONTENTSINTRODUCTION 4 .

COLLECTING THE REVENUE 8Returns Received 8Tax Receipts SRefunds 8Electronic Filing 9Master File 9Earned Income Credit 9Penalties and I nterest 11Presidential Election CampaignFund 1 1

Contributions to Reduce thePublic Debt 1 1

Tax Refund Offset Program 1 1

ASSISTING THE TAXPAYER 12Write, Call or Walk In 14Telephone Assistance 1 4Walk-in Service 14Disaster Assistance 14Taxpayer Education 14Taxpayer Information 15Forms and Publications 15Problem Resolution Program 15

ENFORCING THE LAW 16Examination Results 16Automated ExaminationSvstem 1 7

Information Returns Program 17Engineering Program 1 7Return Preparer Program 17Computer Assisted Audit Programand Statistical Sampling 1 7

Coordinated Examination 18Abusive Tax Shelters 18Illegal Tax Protesters 19Criminal Investigation 19Bank Secrecy Act 19Questionable Refund Program 19Organized Crime Dru g

Enforcement Task Forces 19Collection 2 0Automated Collection System 20Workload Priority and Selection

System 2 0Service Center Collection Branch 20International 20Employee Plans 22Exempt Organizations 2 2

MANAGING THE SYSTEM 23Tax System Redesign 23LaserTechnology 23Automated Underreporter 24Review of AdministrativeFunctions 2 4

Space Management 24Payroll Improvement 24Training and Recruitment 24Strategic Management System 24Research 25The Tax Gap and Compliance 25Computer Services 25Inspection 25Internal Security 26Internal Audit 26Integrity Program 27Productivity Improvement 27Cash Management 28Statistics of Income 28Director of Practice 28Legislative Affairs 2 8Commitment to Quality Service 29Equal Employment Opportunity 29

CHIEF COUNSEL 3 0The Office of Chief Counsel 30Tax Reform Legislation 30International Issues 30Revenue Rulings and RevenueProcedures 3 1

Private Letter Rulings andTechnical Advice Requests 31

Administrative Appeals 31Management Initiatives 32Case Management 3 2Continuing Professional Education 33Academic Internships and

Externships 3 4Regulations 34Litigation 34Industry Specialization Program 34Special Trial Attorneys 34Employee Plans 3 4Abusive Tax Shelters 35Litigation Initiatives 36General Legal Services 3 6

STATISTICAL TABLES 3 7

OFFICIALS 66Commissioners of Interna l

Revenue 6 6Acting Commissioners 67Principal Officers 67Chief Counsel 7 1Acting Chief Counsel 71Principal Officers 7 2

INTERNAL REVENUE SERVICEORGANIZATION CHART 74

INTERNAL REVENUE SERVICEMAP (Regions, Districts and ServiceCenters ; Chief Counsel Regional andDistrict Offices) 7 5

INDIA 76

Z4

INTRODUCTION

1986 was a watershed year for ourfederal tax system in the UnitedStates . The passage of a new tax lawthat will rename and restructure ourtax code challenges all of us - taxpay-ers, practitioners, and tax admirristra-tors. More importantly, the new lawholds out the promise of a fairer, morerational tax system .

The Internal Revenue Service spentthe eariv part of 1986 advising Con-gress al~out the administrability ofproposed sections of the law. Our taxreform agenda for the latter part ofthe year included : gearing up to im-plement the changes in the law thatwere effective before year's end, set-ting a course to handle the numerouschanges to come, and launching amassive public education efforL

We are trying to anticipate all thechanges that may be necessary toimplment such a comprehensive newlaw. We are confident that during thetransition most of the adjustments anddisruptions will be ternporary ~

In terms of our administration ofthe tax system, 1986 had some stand-out achievements:• A virtually flawless filing season and

the successful introduction of anelectronic filing pilot project ;

• The delivery to revenue agents ofportable computers that are revolu-tionizing the Services auditing tech-niques ; and

• The creation of a new office forinternational tax matters thatgreatly streamlines our operationsand gives a new status to an increas-ingiy important part of tax adminis-tration . .But beyond Lax reform develop-

ments and breaking new ground withsome exciting programs, 1986 was ayear when we asked ourselves somebasic questions about our on-the-jobperformance. We asked not if taxpay-ers are delivering to us but if we aredelivering to them .

Those who pay their fair share wantto be sure that we will collect thetaxes owed by those who do not.Fqualiv important, however, all tax-payers want to believe that in collect-ing taxes, we will treat them fairly andrespectfully.

Z, 'ZQ, . w~~ ~., s " ~_ " xa, k ~ ~al. ~

This annual report, therefore, marks This means learning to think in newthe renewal (if our organization's com- way about ourselves, about our orga .smitment to the delivery of quality nization, about taxpayers and theirservice to taxpayers. In reading the advisers. Making the transition isn'tnarrative and checking the statistical easy but we are learning some inter-charts, we suggest that you read be. esting lessons along the way.tween the lines. The real story about The most important lesson is that1986 won't he found in the numerical today's taxpayers want the same thingresults of programs but rather in our taxpayers have always wanted-qual-decision to take stock of ourselves as ity service . And delivering qualityan organization and ask some tough service means concentrating on somequestions. old-fashioned values-paying attention

Are taxpayers being adequately to details, doing things right the firs tinformed about their responsibilities time, speaking to people in languageunder the law? Are We answering they can understand, being receptivetheir questions quickly, correctly, and to new and better ways of doing busi-in non-technical language? When a ness.mistake or problem occurs, do we No part of our organization is moreaddress it courteously and solve it important to delivering quality tax-promptly? payer service than our attorneys .

Taxpayer support for our agency's Since the responsibility for writing themission is critical to the success of rules and regulations associated withthat mission . But taxpayers can't,com- tax reform Tests primarily with ourply if they dont know what's expected attorneys, the quality of their perform-of them . And taxpayers may be less ance is crucial to the public's under-willing to comply if they believe the standing of its obligations under thesystem is unfair, unresponsive, or un- I aw.enforced. In addition to a very full tax reform

Our Lax system is based on an un- agenda, OUT attorneys have been work-written contract between the Internal ing on some novel approaches to theirRevenue Service and taxpayers . In traditional business of litigating cases.order to pay tire costs of living in a *They have been exploring ways tocivilized society, taxpayers agree to focus their legal expertise on thevoluntarily compute and pay their more significant cases, those casestaxes. But they expect something that raise major policy issues or in-more personal in return. That per. volve large amounts of tax dollar as-sonal "something" is the confidence sessments .that as they try to comply with their This year we began to review ourtax obligations, they will be treated counsel's role in our tax complianceprofessionally, with dignity and re . process . Traditionally, an IRS agent orSpeer . appeals officer has relied on counsel

As we strive to improve our cus- for legal advice on a very small per-tomer service, automation continues centage of their cases. Usually theseto break down the lines that separate cases either involved larger dolla rour different functions. We can no issues with a legal question pending orlonger afford to think of ourselves in a unique technical or legal issue . Wenarrow terms-as examination special- are exploring whether there are newists, or collectors of overdue tax, or and additional areas or ways that ourprocessors of tax returns. We are counsel could be helpful to us in de-learning to put ourjobs in perspec- veloping our more specialized cases .tive, to think about where we fit intothe tax system as a whole and how wecan better work together to serve thepublic .

Our attorneys also are reviewingvarious ways to reduce their inercas.ing inventory of tax shelter cases . Weare not considerift cancelling taxpay .ers' tax shelter debts. We are investi .gating ways to handle our caseworkmore efficiently. Our refined methodsof analyzing cases make it possible topredict the ultimate monetary settle .ment that we can expect from a case .Were exploring ways to obtain thesame dollar results but settle casesearlier in the process.

Annual reports record importantfacts and figures about an organiza-tion . But long after we forget the factsand figures that distinguish one yearfrom another, we remember the ex-ceptional people . Our confidence inour ability to do our job-now and inthe future-is built on confidence inour people. They are our most impor.tant and precious asset . Throughoutthis annual report are snapshots ofsome IRS people who make a positivedifference in our business of tax ad .ministration .

We are featuring two executives-Dick Wassenaar, assistant commis .sioner, criminal investigation, and TomLaycock . assistant commissioner, com-puter services-who dedicated theirprofessional lives to the IRS and diedat the height of their careers . They areremembered in a special way notbecause they were executives of ouragency but because they exemplifiedall the best characteristics of an IRSprofessional .

They both knew what it meant towork their way up from the bottom .They related well to people-taxpay.ers, practitioners, and IRS employeesat all levels of our organization . Inrefusing to settle for second best, theyset a high standard of performance .Their competence, personal integrity,and leadership made a lasting impres.sion on all of us . We shall miss themas friends and colleagues .

Lawrence B . Gibbs,Commissioner

William F. Nelson,Chief Counsel

6

RICHARD C. WASSENAAR

Dick Wassenaar's career with theInternal Revenue Service began as acriminal investigator in Chicago in1963 . He quickly rose to the supervi-sory level and participated in one ofthe most significant political corrup-tion investigations ever undertaken bythe Service-a cooperative venturewith the U.S. attorney's office in whicha number of local politicians and busi-nessmen were prosecuted .

lie rose through the ranks, accept-ing posts of growing responsibility,mostly on the West Coast . When theIRS created the office of assistantcommissioner, criminal investigation,in 1982, he was the first person cho-scn for the job .

Throughout his career he stressedthe professionalism required of asuccessful criminal investigator . lieexpanded the use of undercover inves-tigations, search warrants and com-puters, earning for the IRS agovernment wide reputation for hard-nosed, professional financial investi-gating and fair, but aggressive,enforcement of the nations tax stat-utes. His reputation extended into thelegal profession, and he received aspecial award from the American BarAssociation in 1986 for his outstand-ing contributions in strengtheningrelationships between the Bar Associa-tion and the IRS in criminal tax en-forcement activities.

THOMAS J. LAYCOCK

Thar Laycock came to the InternalRevenue Service over thirty years agoas a tabulating-machine operator inhis hometown of Lawrence, Massachu-setts. He became a supervisor shortlvafterwards, just as the IRS was takingits first steps towards- automation . Hiscareer rise paralleled the developmentof the complex systems needed tokeep pace with the growing size andcomplexity of the American tax struc.ture. He made major contributionstowards that process throughout hiscareer.

After assuming the position ofassistant commissioner, computerservices, in 1983, Tom began a majorrevamping of the automated data proc .essing system, aiming to improve thequality of data processing operationsthroughout the Service. Many of thoseimprovements will remain in placepast the end of the century .

Tom received the Presidential RankAward of a Meritorious Executive in1981, and the Commissioner's Award,the highest IRS honor, in 1986 for hisaccomplishments in tax administra-tion.

I

COLLECTINGTHE REVENU EService to taxpayers means many

things, among Which tile efficient

and timely processing Qftax returns

and refunds ranks high . In 1986 tile

IRS processed record numbers of

tax returns. and collected more

than $782 billion in. taxes, another

record. Tile service also tested

clectronieffling ofindividual tax

returns for the first time . Based on

tile successful results of this initial

experiment. plansfior 1987 include

expanded tests of electronic filing.

RETURNS RECEIVED

IRS service centers processed 188million federal tax returns and supple-mental documents in 1986 for a 5.5pereent'inerease over the 178 .2 mil-lion processed in 1985.

Over 85 .1 million, or 45 .3 percentof all returns received, were individualtax returns forms 1040 and 1040A .More than 17 million individual =-payers - 16 .6 percent of all individualfilers - used the simplified Form1040EZ, compared cc nearly 16 .7million in 1985, a rise of 1 .8 percent .The number of individual taxpayersfiling Form 1040 increased 4 .5 per-cent from 63.8 million to 66 .7 millionthis year. (See statistical table 6fordetails.)

Stopping errors before they oc-curred was the emphasis in the re-turns processing program in 1986."Quality improvement teams" of man-agers from several areas reviewed theoperation as well as the end product .The Service also put in place amethod for spotting more quickly anyprocedures, instructions or other prob-lems with the system itself that mightbe causing errors . Giving managersthe information they need to correctthese systernic proble

mshelps do

away with these types of errors.

TAX RECEIPTS

Gross revenue receipts, up 5 .3 percentover 1985, rose to $782 .3 billion thisyear; an increase of $39.4 billion. Indi-vidual and corporation ine6me taxcollections accounted for ilmost two-thirds of the total receipts. Individualtax receipts totaled $416.6 billion, anincrease of 5 percent over last v at.Corporation tax receipts rose 3 .9 per-cent to $80.4 billion .

Employment taxes (.social security,self-employment, .federal unemplrj~,ment and railroad retirement),which were 31 .2 percent of the totalrevenue, hit $244 .4 billion, anotherrecord high for more than five yearsin a row.

Excise taxes totaled $33 .7 billion, adecrease of 9 percent compared tolast year. (See statistical tables 1, 2and 3jor details .)

REFUNDS

In 1986 IRS issued 77.9 millionrefunds totaling $94 .4 billion com-pared to 80.1 million refunds in theamount of $86.3 billion in 1985 . Over74 .2 million individuals receive d$72 * 9 billion, including $469 millionin interest this year As of the end ofSeptember 1986, IRS had issued re-funds with interest on 3 million cut-rent-year individual income taxreturns timely filed but not refundedduring the statutory interest-free per-iod compared to 2 .1 million last year.Individual refunds this year averaged$982 compared to an average of $866in 1985 . (For details, see tables 4and 5.)

,~,juc Qf naturn

NUMBER OF RETURNS Grand total

FILEP BYPPJNCIPAL

TYPE OF RETURIN mf7~idum l

(Figures in thousands.

For details see

statistical table 6. )

ELECTRONIC FILIN G

The processing of paper documents isa highly manual, time consumingactivity : opening envelopes, sortingforms, assigning codes and, finally,entering data on computer terminals- and all . 1)), hand .

In 1986 IRS tested a process thatbypasses the costly paper operationby accepting returns from the com-puters of qualifying tax preparationfirms directly into the system . Withthe number of tax returns prepared bycomputers estimated to be about 13million and growing rapidly, electronicfiling seems to Promise faster, moreaccurate service to the taxpayer anddramatic savings to the government .

Five tax firms in the metropolitanareas of Cincinnati, Phoenix and threeNorth Carolina cities showed interestand met the requirements for sendingdata over telephone wires to the Cin,cinnati Service Center, the centerchosen for the test . They transmittedabout 25,000 individual income taxforms in the 1986 Pilot test. The

Declaration of estimated taxFid.ci.-

Partnenhi p

Corporation

Estate ta x

Gift ta x

Employment tax

Exemin organimlions

Employ- plans

Alcohol. tobacco and firearon ,

Excise tax

SuPplemental documents I

Non-master file ratu .W

9

19S5 1986

178.219 188.01 7

140.724 145 .69 6

99 .426 1012 .39 3

34 .225 35 .48 5

2.053 2.30 5

1 .717 1 .84 5

3.303 3.66 7

77 72

95 103

'6.8'4 27.92 1

431 4S 7

644 22, 1 4 2

397 520

796 1 .265

8.19S 9.795

71 17

MAS7ER FILE

The master file is a collection of allIRS accounts for individual taxpayersand for businesses, and it is stored atthe National Computer Center (NCC)in Martinsburg, NXIest Virginia . Each ofthe ten service centers transfers ac.count information to the center on aweekly basis. The number of taxpayeraccounts on the individual master filegrew to 139 million by the end ofSeptember 1986. an increase of 4 .5percent from last year's figure . For thesame period the number ofaccountson the business master file numbered26 .8 million, an increase of 3 .5 per.cent . The National Computer Centerprocessed 669.1 million changes tothe master file during the year, a de.crease of 1 .1 million .

'Includes Forms 1040X, 112OX, 1-688,4868,7004,7005 and 1041A .' lri .iud .~ Forms 9431, 941141,11, CT-2,990BL. 6069.1042,1120 DISC. 1120 IC DISC, 1120FSC AND 8404 .

streamlined processing permitted IRSto issue refunds to 94 percent of elec-tronic filcr~ in a matter of 314 weeks;had the same taxpayers filed paperdocuments, settlement would havebeen three to five weeks later Onlythree percent of the computer-filedreturns had processing errors, com-pared to 21 percent with the paperones .

IRS is expanding electronic filing in1987 to seven sites - one in eachregion - and has increased the num.ber of tax forms and schedules filedelectronically from nine to twenty.Taxpayers filing clectronically in thethree original test cities may chooseto have their refunds posted with theirfinancial institution by electronictransfer. A separate test in the An.dover Service Center will focus onelectronic filing of some businessreturns . Once the system is fully inplace in the early 1990's, possiblymore than 30 million taxpayers ayear may choose to file returnselectronically.

EARNED INCOME CREDITLow income taxpayers who keep ahome for themselves and at least onedependent may claim the earned in .come credit. And taxpayers who qual .ify for the credit may choose to get itin their paychecks in the form of ad-vance payments during the year,rather than wait and file for it on theirtax returns after the year is over. In1986, 6 .2 million taxpayers claimed atotal of $2 billion, of which 9 1 .7 bil.lion had been claimed in advancepayments .

Gross receipts

rose to

$782 .3 billion.

10 ~dul; C m

NET INTERNAL

REVENUE

COLLECTIONS

(in thousands of

d,llan-.)

GRO,SSINTERNAL

REVENUE

COLLECTIONS

(in thousands of

dollars. For details see

statistical table 1 .)

Grand total

Source

Corporation income taxes

Individual income taxcs ~

Employment taxes. total

63 .5

Old-itge, sm-viv-'s . di .bility and hospital i . .. -ove 234.879,73S 736 .900 234 .142.838 34 .

Railroad retiremen t

Umunplo-ent imm-,.

gift taxesEstate an d

E . .i- to.-

Does not include interest paid on refunds. In thenarrative, the total refund figure of $94 .4 billi m .

eludes $1 .8 million of interest.! Refunds of Forms 1040, 1040A AND 1040EZ mclud

mg withheld -.a, in.s PICA.

Source

Grand tota l

Imsorm, tax. . total

Corporation

Individual . total

10 .3

CrussCollectiona Rqfimd.' Amount Qftmal

961 100 .0782 .251 .SI2 92.600 .851 689 .650,

'80.441,620 17.29S .313 63 .143~307 9 .2

416.568.384 73 .286 .5662 343 .281 .817 49 .8

244 .374,767 990 .361 243,384.407 35 .3

3,833.640 6,243 3.827.397 0.6-

5 .661.389 247 .218 5 .414,171 0.8

-7,194 .956 237 .329 6,957,626 1 .0 -

33 .672 .086

I Does not include an aciJustment made by the Depart

mem of the Treasury after our books were closed to

increase "Individual income wes withheld by employ .ers" and correspondingly decrease "Unemployment

ins... . .. .. by $396,387,000 .

I.-c or d--

474.072,327 497.010.003 22.937 .676 4 .8

77 .412 .769 80,441 .620 3.028.850 3 .9

Net Collections

Percen t

788.282 32 .883 .804 4.6-

1986 Amount Pertsen t

53 .3 396,659 .558- 416 .568 .384 19.908.826 5 .13

Withheld byempioy-3 40.2

Other' 13.1

298 .975,3711 314 .441 .95311 15,466.582 5.~2

97 .684 .187

-102 .126 .431 4,442,244 4.5

244 .374 .767 19 .160,200 8 .5Employment taxes, tatall 31 . 2

Old-age, survivor's. disability and

hospital insurance. total 30 .0

Federal insurance contributions 28 .0

Self-ployment insurancecontributions

Unemployment insurance

Railroad retirement

Botate md Aift taxes

FAcise Mca. toud

Alcohol

Tobacco

Other

2 .0

0.7

O. S

0. 9

-4. 3

0. 7

0 .6

1 .0

Includes presidential election campaign fund amount

ing to $34,787,755.' Includes presidential

-election campaign fund amount .

ing to $35 .933,481 .~ Estimated collections of individual income = with

held are not reported separately from old age, sumi-vor's, disability and hospital insurance (OASDHI) cases

on wages and salaries. Similarly, collections of individ

us] income = not withheld are combined with OAS

DID =es on self-employment income. The amount of

OASDHI = collections shown is hased on estimate,

100 .0 742,871.541 782.251,812 39.380.27 1

Percent of 1986ecAleetirms 198.5

1-25,214,568

215,590.990 234,879.738 _19,288 .748 8 .2

201 .492,708 219,171 .256 17 .678,548 8 .8

14 .098 .282 15,70S.482 1,610,200 1 LL

5 .671 .797 5.661.3891 (10.407) -0. 2

3 .951 .78 1

6,579 .703

3 .833,640 (LIS.141) -30

7 .194,956 615,253 9. 4

37.004.944 33 .672,086 -11 0

5.398,100 S,647 .485 249 .385 4 .6

4.483.193 4.607 .945 124 .652 2

27.123 .651 23,416.756 (3,706.895) -13 .7

made by the Secretary of the Treasury pursuant to theprovisions of section 201(a) of the Social Security Act

as amended and includes 01 OASDIII m.. The

estimates shown for the two categories of individual

income =as were derived by subtracting the OAS,

DID tax estimates from the combined totals reported.

~ Does not include an adjustment made by the Depart.ment of the Treasury after our books were closed toincrease "Individual income -es withheld by employ

ers" and correspondingly decrease "Unemploymentinsurance" by $396,387,000 .

The Service

issued 77.9

million refunds,

totaling

$94.4 billion.

PENALTIES AND INTERESTBy law IRS must charge penalties forcertain infractions such as failure tofile' returns or make timely payments,payment with bad checks, negligence,

false withholding statements andfraud, unless there are extenuatingCircumstances. The law also gives IRSthe authority to charge interest on latePayments and to cancel or lower an

interest charge when it is not justified.In 1986 18.6 million penalties Wereimposed totaling $3 .5 billion . Ofthese, 10.3 million penalties were

imposed on individuals, for a total of$1 .8 billion, and 8 .3 million on busi-

ness returns, totaling S 1 .7 billion .Penalties may be abated when a tax.Payer Can show just cause that thePenalty should not have been im .posed in the first place . InterestCharges totaled 83.5 billion on individ .Ual returns, with reductions of $435 .6Million . Interest charged to businessreturns totaled $7 billion, lowered by$2.4 billion when necessarv. Gener.ally, the IRS may not reduce interestdue on taxes Owed, but in cases whereinterest is not justified, it may be low.

ered or canceled as appropriate.

PRESIDENTIAL ELECTION

CAMPAIGN FUN D

All CitiZens and resident aliens whoOwe at least one dollar in federal in .come tax may. choose to designate a

dollar from this tax to this fund, estab .lished in 1972 . In 1986, 23 percent ofthe total individual income tax re .turns, or 23 .9 Million, showed designs .tions to this fund of $35 .9 million .The Cumulative amount credited tothe fund since it began in 1972 is$467.2 million .

CONTRIBUTIONS TO REDUCETHE PUBLIC DEB T

This was the fourth Year federal taxforms carried a message inviting tax .payers to make voluntary contribu .tions to reduce the public debt. Thosewho chose to do so could have Sentseparate checks, payable to the Bureauof Public Debt with their federal taxreturns and take a deduction on thenext year's Lax return, subject to limi .tations on charitable deductions . Allfunds received go to a Special accountfor this purpose . In 1986 there were1,341 Contributions, totaling 8245,00DMaking the number Of contributions9,659 and the total Contributed $1 .4Million.

TAX REFUND OFFSET PROGRAM

If a taXpaVer fails to Make supportpayments to a child or spouse whoreceives public assistance, Congress

requires the IRS to withhold all orpart of the taxpayer's income tax re-fund to cover the delinquent pay .ments . This requirement has been ineffect since 1981 . Starting in 1986, therequirement now includes applying

individual income tax refund, t~ P.POrt payments for a child or spous eO'suwho is not On Welfare and to debtsowed to some federal agencies.

Through an agreement with the

Department of Health and HumanServices, IRS acts as Collection agentfor the state welfare agencies in allchild or Spouse support Cases . Therefund amounts reimburse the agen .cies for the support they furnishthrough aid to families 'with depen.dent children. The state agencies turnthe funds Over to the parents .having

custody of the children in nonwelfarecases . In 1986, 606,521 refunds Wereoffset in the amount of $320 Millionto cover delinquent payments .

Other agreements with the Depart .

ments of Housing and Urban Develop.ment, Agriculture, and Education, andthe Veterans' and Small Business Ad .ministrations require the HIS to act as

Collection agent for delinquent federaldebts. Refunds were Offset for thispurpose on 273,327 individual in-

come tax returns in the amount of$150 million.

w. a. , ,u 7 ej~, '51~~ILV - nke= _Mt,

12

ASSISTINGTHE TAXPAYER7hxl)(kvcr.q have the right to expect

that IRS will provide them with

qualitv assistance in meeting their

obligations and responsibilities

under the ta:v laws. in filing their

returns . in resolving problems and

in getting accurate answcrs to

questions . 111 1986 IRS took steps to

bolster file taxpayer assistance

program with more training. Staff

and resources.

IRS gave

special help to

disaster victims

in 22 states.

8 1

11 9Tax For.$& Instructions Distrilurted 298.0Million 314 .0 Million

Some 59,000 IRS-trained

-volunteers helped with

1.8 million taxpa~yer

returns.

45W 1 .3

ASSISTING

TAXI'AYERS

""ite. C-11 or Watk-i .

Total Requests for Assistance

Toll-Frec Telephone 37 .9,%fillion 41 .1 Million,Account & Problem Resolution 6.2,%Iillion - S.9 MillionTeelone.]

Se-i-e for thc De d

Small Business

Non Toll-Free Telephone .3,%fillion .8'Villi mTele-Tax

Automated Res p

Refun d

Outreach

Community Sites

Correspondence

Walk-i n

Permanent Offiec ,

Tax Practition-

Filing Season only ]I S

With Foreign Language Assist 114

Libraries, Banks & Postal S-jec 52 .000

Di.-ter Assistance

states

CountiesCities

T-pa_~er Fdoentiou

Taxpayer Returns Assisted

VITA & TCE Volummm

Students Who Recei-cl Understanding Taxes Material

Workshops

2 2

Ta"3-k(br-ati. .

Free Ad-ftising Recei-d $35-OMillion $34 .0 Millio n

Material Sent to print ad Electronic News Media 35,0(K) 30.000

Television Clinics

Radio Clinics

Eminnated Viewer s

Institutes

1985

54 .S,ifillimt 5N.9,itillio .

2 .6,Vfilli.,, 2.1 Million

2.388 2.876

7 .9,11ifli 8 .3 Million

1-5 Million 4.3 Millio n

6 .4Million 4 .0 Million

376 .000 4(K) .00 0

S .(XX) 6.60o

2,11 .000 160.000

8.1 Atillion 8 .1 Mill i

345 37 7

52150 0

22 14

250 11 1

58 N/A

1 .8 Million 1 .5,11illi-

59.000 50.00( )

4 .0bfillicn.

39.000 39.800

32 .000 37,40o

230 235

Law & Graduate Accounting Schools 2 2

Newspapers Gi- Tax Supplements 900 900circulation 23.0,ifillirm 23 .0jifill i

m""o o~;~.q-wm

M.guin. with Public Service Ad ,

Circulation

Ad Valu e

Billbo.rdx

13

4

12.0 Million 10.1 Millio n

4,573 1 .90( )

94.0,%fillion 94 .0 Million

04.8 Million $4 .8 Millio n

1 .900 1.90 0

Wamm ietg wy.,

14

WRITE, CALL OR WALK IN

In 1986 employees answering tax-payer inquiries received improvedtraining to he able to fully respond tothe taxpayers' questions . All personnelassigned to work on taxpayers' ac-counts received additional mandonor-ytraining on researching and resolvingaccount~relatcd problems. And allemployees who deal with the publicreceived, in addition to thL annualrefresher training, a special course onCommunication techniques which notonly stressed courtesy in answeringtaxpayers' questions, but also includedtraining in listening skills . More expe-rienced employees served as coachesfor new employees as they workedthrough on-the-job training. With pas .sage of the Tax Reform Act at the endof the fiscal year, tax assistors receivedtraining about the provisions of thenew law.

Taxpayers wrote, called or walkedinto IRS offices in 1986 with 54 .8million requests for assistance, com-pared to 58.9 million in 1985 . Therewere more contacts in 1985 than in

3986 primarily because of the out-of.the-ordinary problems the Service

experienced in 1985 in processing taxreturns . More than 65 percent of the -1986 total assistance requests oc-

curred between December 29, 1985,

and April 26, 1986 . Quality checksshowed that IRS responses to theserequests had an overall accuracy rate

of 93 percent.

TELEPHONE ASSIS1ANCEThere are three ways to phone theIRS for assistance : the toll-free systemwith trained assistors to answer thephones for tax information or helpwith account problems; Tele-Tax foreither recorded technical tax law in .formation or the status of the currentyear's refund: or a special toll-freetelephone service to order forms andpublications only.

This year Me-Tax doubled the num-ber of telephone lines and the servicebecame toll-free nationwide . In addi-tion the system can now answer re-fund inquiries more specifically. Forexample, the equipment, a computer-

based answering system, can tell thecaller what day the refund was mailed,whether the tax return in question isbeing processed, or that the return -has been processed. If there is a proc-essing problem, the Ticle-Tox messageadvises the caller to contact the IRSfor more information .

Deaf taxpayers throughout theUnited States, Puerto Rico and theVirgin Islands continued to receivetoll-free tax assistance through equip-ment designed specifically for theiruse .

WALK-IN SERVICE

IRS offered walk-in taxpayer assist-ance in inner city, business district,suburban and rural locations, in per-manent offices and at temporary sitesset up only for the busy period of theyear when taxpayers are filing returns.Many of the offices offered foreign:anguage assistance. Some 52,000ibraries, bar4os; and Postal Service

locations helped IRS distribute morethan 298 million tax forms, instruc .tions and publications.

DISASTER ASSISTANCE

In 1986 taxpayers in 22 states sufferedlosses due to floods, hurricanes, torna~does and other emergencies and disas-ters. The IRS offered on-sitc assistanceto the victims by helping to prepareamended returns for casualty lossclaims so that affected taxpayers couldget refunds as quickly as possible .

TAXPAYER EDUCATION

As in the past years, IRS distributedInstructional materials to high schooland adult basic education studentsthrough the Understanding 7&vesprogram. Recently expanded, the sec .tion on the economics of taxation nowincludes a video/film series of six 15.minute programs, entitled, Tax W)kvs :Understanding 74xes. Since 1985,over 11,000 teachers have beentrained in teaching 7bx Whys.

The Volunteer Income Tax Assist-ance (VITA) and Tax Counseling forthe Elderly (TGE) programs trainedvolunteers to assist low-income, non-English speaking, handicapped and

elderly taxpayers with their federal, 15

state and local to men, andSupplied other tax materials Place to turn when their previousaX returns . In addition to 8-5 million taxpayers, 230 0oo taxIRS employees not only traveled to

,

efforts to nesolve a tax problem h elocal sites through the Communit Practitioners and 500,0oo C~P'Oyers failed . IRS employees themselves"Outreach TaxA i y, When taxPavers order printed mate

. identified and referred more than soS'%'~Stance Program and rialS from IRS*bv phone, the requests Percent of the 545,()Oopresenteoltseminars, on a varietyof tax go to the newiv-developed Centraliz d Cases handledtopics, bu they~ also helped conduct Invento*, and'Distribution Svstem C by this Program this Year The balance

workshops for small,business owners which is in the p,,cess of * ' I of the requests came from taxpayersand Participatedin tax practitioner automating and tax Practitioners who had hecomeinstitutes. and centralizing forms warehousing

and di aware Of this specialized serviceStribution, IRS is currently Con . through various sources of publicity.TAXPAYER INFORMATION solidating its eight distribution centers Besides handling individual prob.across the nation into three straregj .The Service prepares a variety of ma- cally located sites The first faL lem cases, a large Part of the program

terials on taxes for both electronic an Alitv i nRichmond, Virgim . has been O'Cat . units to Prevent or correct Systemicprint media. IRS Participated in

dProblems which arise in the tax

television and four radio tax clini13 tional since October 1985; the secondcs in Bloomington . Illinois, began Opera. system itself. Problem Resolution

and Other special Programs nation . tion in October 1986; the third nowin recommendrajons in 1986 led to a

wide which not only gave viewers Fresno, Callifor-rii Policy for reimbursin gtopical a, will mOve to a new taxpayers fortax information but also al- Sacramento site in July 1987 IRS' .bank Charges resulting from the IRS'lowed them to Phone in their = distribution centers fill

.ed app

.roxi.

incorrect"!vies On taxpayers' bank

questions, The service produced in- mately 8.5 million taxpayer . accounts.orcers, in Another recommendation intro~stractional videocassettes and made 1986, gencraliv within 48 hours of Ithe m,ib av able to the public through receipt of the request. need safeguards into procedures

ra es anu video outlets . Newspa .pers and other print media across th

ecountry receive materials for theirreaders from the IRS, among whichthe tax supplement _ a mult, .PageCollection of tax information - is theMost significant. In addition the Se,,ice Publishes drop-in ads, billboardsand bus cards advertising the variousfree tax help services the IRS offers tothe public .

FORMS AND PUBI,oCATfONSIn

anon-loin' IRS effort to improve,he for.,, and instructions, emplovees

who have this responsibility contiiiiieto meet with professional groups andencourage comments from the generalpublic . This year IRS developed anumber of prototype tax forms as theTax Reform Act of 1986 Progressedthrough Congress to enactment . Oncesigned into law., the Act required that

some forms and instructions be de .signed and others he rewritten to re .fleet the many provisions of the law.IRS Publishes booklets on moreth 100 specific tax topics andmakes thern available to the publicfree of charge In 1986 the Servicedistributed 4 miji-O -ederal In,,, e 7 Copies 0 ]bur, 1 .9 million COp.ies of the fde for Small Busi.ness, 690, copies of the Farmer'si e of 6,1,0()o copies of theide or 0"1 ercial Fishe,

PROBLEM RESOLUTIONPROGRAM

The Problem Resolution ProgramContinues to provide taxpayers with a

elating to levies on retirement i ncome. Other important developmentsinclude a short form for fiduciaryincome tax filers and procedures toensure

those given Power of attorneyby estates received appropriate no.tices relating to rhe estate tax returns.

,t~ q, ~07, 3P & ~

16

ENFORCING THE LAW

The twopaying public deserves

assurance that their tax

administration is seeking out those

who arenotfulfilling their tao.,

obligations, coliceting the correct

amount (iftaxes due. and when

necessaiey, bringing Mininal

violators of the tax law tojustice .

IRS personnel assigned to these

tasks (ire highly .trained and skilled

prQfessionals. With the ever

increasing help of modern

technologies. they work to ensure

that (III taxpayers

pay ortly their

fair share of tax - no more!. no

less . Their goal : maximuin results

with minimum expense. The new

year the automated system collected

nearly two~thirds ofall delinquent

accannts it received without

resorting to additionalfield

contacts or processi.ng. Also In this

year of increasing global activity

IRS reorganized and consolidated

the international tax operation and

established the ciffice Ofthc

assistant commissioner.

international .

EXAMINATION RESULTS

IRS examined 1 .3 million returns in11486 recommending additional taxarid ~enaltjes on .9 million, totaliog$19 .1 billion - a 12 percent increaseover 1985. Examination, re%ultea inoverassessments on 68,310 returns,with refunds of 9737 million.

This Year IRS adjusted 212,000Forms W-4 when employees under-stated income or claimed too manyitemized deductions and personal ordependency allowances . More than45,000 taxpayers who filed false with-holding information received the $500civil penalty which applies in thesecases .

Its addition, service centers verifiedturn,or corrected 584,028 re

sby mail .

In total, the Service examined, verifiedor corrected 2.03 percent of all re-turns filed, compared to 2 .13 percent

in 1985. This program also resulted in

9796 million in recommended addi-tional tax and penalties . While theService actually examined fewer re-turns in 1986, the recommended addi .tional tax was higher and the numberof returns with no change was lowe r

Continued emphasis0.

fraud detec~tion during the examination processproduced more than 8,000 fraud refer-rals submitted to criminal investiga-

too. in 1986.This penalty is equal to

50 percent of the entire additional taxdue if any part of the underpayment isdue to fratud, Plus ';0 percent of theinterest due on the Port ion of theunderpayment attributable to fraud .

automated examination -Vstem, for.instance . will make it possiblefor

revenue agents to .figare tax, check

. and write reports oilinventories

site with portable computers ]""ded

with state-of-the-art .9Qftworre.

Scmiee centers mse computers to

spot not on(y errors 011 t" retarns

lint also discrepancies between

figures all tax retnrns and the.

amounts on reportsfiled bYPUYcrs

qfincome. The automatedCollection systen, - just coin pleting

its secondfull year of operationcontinues to show significant

improvementq over the collection

f,fficeflinction it replaced. This

AUTOMATED EXAMINATIOI\,SYSTEMIn 1986, IRS contracted for up to18,000 Porcableco Puters that -ighfewer than 17 pounds and fold twchesize of a

briefcase. This new 0 tment literally equip,

Put,' more than 40 IRS .designed applications at the fingertipsof revenue agents. Labor intensivetasks of

the Past can now be done in afraction Of 4~C time. For exampleagents coin calculate an individu~llnet operating loss includin gbacks and carry-catrYlorwards, determinethe amount ofunrePorted incomebased on bank account analysis andcalculate the correct depreciation

. Theintegrated software package includesword Processing, spreadsheet capabil-it) ; graphics, data base managementand telecommunications . With thePortable Printers, agent, can printstandard and customized letters aswell as examination reports . Over6,000 revenue agents already havereceived hardware and software train .ing on theseFuture Ph "laptop" computers

.es of the new systemwill include the i .troduction'of Mini/

q

I-er, computers, a ciLatur system tohelp agents find reference matet-UsInd mainframe computers with

evenmore capabilities. Whbn the system isfully' in Place by 1989 it willthe quality of e~amj improvesonnel pr~ductivi nations and per.

ty, while reducingOverall examination costs .

Il" 'I'OPMATION RETURNSPROGRA M

Because of the computer capabilityMatch documents, it)

1986 IRS noti,tolied more than 3~2

Million taxpayersOf leerning, discrepancies betweenincome the), reported on their taxreturns and income reported by pay .ers Of income on information returns .In additi

The engineering program is one of theoldest and most productive programswithin the examination division . Initi.ated during the First World War, theProgram has grown to its currentstrength of rough)), 360 mining,Petroleum, industrial and general engi . .neers, geologists foresters Ind aPprajs~ers . With the M,'-ljor portion of theirtime devoted to the examination of

Jarge corporations and tax shelters,these specialists provide invaluableservice to both Appeals and Counsel.

on, the Service sent 3 .3 mil-lion notices to taxpayers who appa,endy failed to file federal lax returns

.S-(r%'jce centers received 8 .50 mflhouinformation documents, includingover 21o million Forms IV~Social Se - from the

curity Administration, andmore than 29 million from trusteesfor

contributions to individual retire.men, arrangements and

simplifiedemployee plans.

ENGINEERING PROGRAM

RETURN PREPAREk PROGRAM

'Return preparers like other profe,~.sionals, maintain'. codc of ethicsand standards befitting their proles .sion. Both the IRS and Tetuni prepar-ers have a duty to safeguard the rightsand respons'"it'i's of all taxpavcrs~and

when 'some unscrupulous Prepar-ers violate their trust, IRS 'kuv mustPena b ylize them. As of SePtc"cr 30,1986, based on certain preparer con .duct, IRS asserted 121065 return pre.Parer penalties .apply when t conduct penalties

he facts and circum.

'stances establish that a preparer hasnegligently, intentional y, (it willfullyunderstated MN liabilit'! in the pre,"Paration of a return or

a claim forrefund ,

COMPUTER ASSISTEDAUDIT PROGRAM ANDSTITISTICAL SAMPLING

Computer specialists ,in who at(! trainedcomputer systems, hardware andProgram languages, assist examiner s

cases involving computerizedrecords.The IRS trains coincialists in Puter audit spe.advarcedstatistical

ence techniques so they ainfer.then, either in e=m . ' pplymations or a,expert assistants to other revenueagents and

-initiation specialists.

Employee Plaits

isSued .141,077

detcr7nination letters ,

, - - , ~'. , wi~ , X6_ 4 -m tam .4-ap

L8 O'~, nk~ I~J

RESULTS OF

CRIMINAL

INVESTIGATION

ACTIVITY-1986

InvestigationsIniti.tLd

ln~cstigntionsCompleted

P,asccutionRecammendatiom,

Indictments/I .f .-mions

C.-ictimts.

S-t-ino

Percent RectivingPrison Sentences

COORDINATED EXAMINATION

This program includes 1,436 of thelargest and most complex dom esticand foreign-controlled corporations.Teams of the most experienced exam

.

iners control and perform examina-tions of these corporations . IRScontinually monitors the program toensure the highest degree of efficiencyand effectiveness . An executive leveltask force is completing a study toevaluate the program and mak~ rec.ommendations for improvement. Thecoordinated examination programrecommended tax deficiencies andpenalties totaling $8 billion in 1986.(See tables 7 through 12for addi-tional iriformation on examinationresults.)

F-dulentT=

ShOt-

illegalT_

Protest-N.-Aics Barik Scclcc~Wicacil Act (Title 31)

AllOth- Tota l

1986 1985 1986 1985 1986 1985 1986 1985 1986 1985 1986 198 5

312 326 338 447 1264 1188 354 338 3593 3766 5861 6065

335 334 464 608 1343 1277 369 250 3576 3442 6087 591 1

231 213 299 351 956 840 27.5 174 1763 1656 3524 323 4

1-14 92 338

8

345 817 673 204 144 1471 1198 29.54 245 2

7

' s

55

29

296 302 666 515 Jos 91 1283 1062 2460 202f

so 50 319 304 662 514 111 97 1246 1126 2418 2091

59% 66% 6096 61% "96 80% 60% 57% 56% 58% 61% 64%

ABUSIVE TAX SHELTERS

Abusive tax shelters are schemes de.signed to create paper losses that haveno business or economic basis . Be .cause of the demoralizing effect theyhave on the tax-paying public, theseshelters have long been a target ofemployees in examination, criminalinvestigation and other enforcementfunctions. e

As of Sept mber 30, 1986, the Serv-ice had examined 184,249 returnswith tax shelter issues - an increaseof 42,826 returns over 1985 . Examina-tions of 171 354 of these returns re-sulted in mQ recommendedadditional tax and penalties of $3 .7billion .

Today criminal investigation detec-tion teams in each service centerscreen returns for schemes that couldbe abusive shelters in order to blockimproper refunds . To date the teamshave frozen more than $19 .5 millionin refunds that were directly assocli-ated with abusive tax shelters . Thecases they have referred to districtoffices have resulted in more than1281 criminal investigations and civilexaminations of promoters and inves-tors .

As a result of rules requiring taxshelters to register with the examina,tion division, organizations have sent8,583 applications whose deductionsand credits substantially exceed in-vestments. Promoters who overvalue ashelter's assets by a large margin or

who make false claims about the shel-ter may be subject to a penalty of$1,000 or 20 percent of gross reve-nues from the sale of the shelter- Ifthe promoter is subject to this penalty,the Service will attempt to advise theshelter's investors before they filetheir returns that any deductions orcredits taken in connection with theidentified shelter will be denied andthat they will be subject to certainpenalties . in 1986 IRS issued 5,307letters on 22 promoters during theyear and obtained court orders bar-ring 15 promoters from marketin gs

.helters . This year in Ft. Lauderdale,

Florida, a tax shelter promoter wassentenced to serve 62 years in prisonfor aiding and assisting in the prepara-tion of false federal income tax re .turns and filing false personal federalincome tax returns. This representsthe longest prison sentence handeddown so far for a shelter promoter.Further, the judge ordered the pro-moter to serve at least 20 years beforebeing considered for parole. Thescheme involved some $50 million intax wrjteoffs with investor fundsrouted thrZgh Liechtenstein, theCayman islands and the Bahamas .

ILLEGAL TAX PROTESTERS

Illegal tax protesters are those whobreak the tax laws to protest govern .mcnt policy. Unfortunately, they some .times attract a large following ofpeople who fail to recognize the ial .lacy in their arguments.

The founder and former presidentof an illegal tax protest organization inAtlanta, Georgia, was sentenced toserve 84 years in prison for aiding andassisting in the preparation of falsefederal income tax returns .

A Cedar Rapids, Iowa, school .teacher, who also is a "bishop"in aCalifornia-based organization that sellschurch charters and ministerial cenifi .cares, was sentenced to serve eightyears in prison after being convictedof conspiracy to interfere with or im .pede the lawful function of the IRS .Seven other individuals who had beencharged with taking false deductionson their federal income tax returnsnegotiated plea agreements and testi~fied against the principal offender.

CRIMINAL INVESTIGATION

Voluntary compliance with the taxlaws in the United States self-assess:ment system of taxation relies heavilyon the deterrent effect of successfulcriminal prosecutions . IRS criminalinvestigators long have been recog .nized as being among the top finan-cial investigators . Today, organizedcrime, abusive tax shelters, illegal taxprotesters, high-level drug dealers,Organized Crime Drug EnforcementTask Forces, Bank Secrecy Act andmoney laundering violations, and falseclaims against the government areamong their priority enforcementtargets. While the examples whichfollow are just a microcosm of the

total universe of successful tax prose .cutions for criminal violations, theyillustrate a key issue: these are expen-sive crimes. ~ot only do the courtshand down substantial prison senten-ces, but those convicted must also payfines, civil taxes and penalties in addi .tion to serving prison sentences .

BANK SECRECY ACTThe Bank Secrecy Act requires finan .cial institutions to report currencydeposits or withdrawals of more than810,000 . The second largest bank inNew England %%,as fined $1 .2 millionfor violations of the act. The bankfailed to report 31 separate with.drawals of more than $10,000 each byan alleged bookmaker. A West Covina,California. man was sentenced toseven years in prison for violating theBank Secrecy Act when he laundereddrug-related money.

QUESTIONABL EREFUND PROGRA M

This program seeks to uncover thoseindividuals who file false or fictitioustax returns for the purpose of gettingrefunds to which they are not entitled.Detection teams in each of the servicecenters intercepted more than $10 .8million in fictitious claims for multiplerefunds and referred more than 680schemes to district offices for investi .gation .

An Oak Harbor, Washington, manwas sentenced to serve three years inprison for filing false refund claimsand for mail fraud. A former US. Navyofficer, he used names and social secu.rity numbers obtained from Navybillet rosters. A false refund detectionteam blocked all of the more than$350,000 in false refund claims beforeany checks could go out . A formerrevenue agent was sentenced to servefour years in prison after being con .victed of filing false claims for refundin Lubbock, Texas . The scheme in .volved the use of false Form NV2 pre.pared with legitimate social securitynumbers and employer identificationnumbers obtained in the defendant'saccounting practice .

ORGANIZED CRIMEDRUG ENFORCEMENTTASK FORCE S

The Service is asignificant participantin the President's Organized CrimeDrug Enforcement Task Forces. Theinvestigation of narcotics traffickersinvolves in-depth financial analyses byspecial agents of the criminal investi .gation division . These investigationsare in direct correlation with effectivetax administration and the fostering ofvoluntary compliance among individ .uals receiving income from illegalsources .

A former assistant United Statesattorney in Jacksonville, Florida, wassentenced during the past year toserve five years in prison for conspir-acy to aid and assist a drug smugglerhiL illegal profits from the IRS . fiealso was convicted on charges relatedto money laundering activities . An ex.

Exempt Organizations

approved

43.007 applications.

NX-4

20

accountant from Florida was sen-tenced to 35 years in prison and fined

$6 million for tax on money launder-ing and drug-related violations whenevidence was introduced establishingthat he had laundered over $100 mil-lion in illegal drug profits. Other cvi-

dence established that between 1973

and 1983 he had laundered over $1billion .

A former assistant district attorneyin Kalamazoo, Michigan, was sen .tenced to serve five years in prison fortax evasion and for interfering withand impeding the lawful functions of

the IRS. The charges stemmed fromhis involvement in a multi-milliondollar drug ring.

COLLECTION

Collection is responsible for collectingtaxes where the amount owed is notin dispute but remains unpaid. Collec-tion secured $19 .6 billion in 1986,compared with $18.3 billion in 1985 .

Of that sum, $9 billion was collected

as a result of the first bill . Subsequent

billings yielded $5 .5 billion, and addi-tional action on delinquent accountsgenerated $5 .1 billion .

AUTOMATED COLLECTION

SYSTEM

The automated collection system(ACS) completed its second full yearof operation and increased in effi-ciency to the point of fully collectingnearly two-thirds of all delinquentaccounts it received without resortingto additional field processing .

WORKLOAD PRIORITY ANDSELECTION SYSTEM

in July 1986 collection implementeda workload priority and selection sys-tem to more effectively manage its

growing inventory Computer modelspredict the yield of cases in each ofseventeen workload categories, basedon historical data and the chbracteris .ties of related tax returns.

When taxpayers fail to resolve their

accounts in ACS, this new system o'f

inventory control either issues theaccounts to the collection field func.tion or holds them in a "queue." Ac-counts in the "queue" are thenassigned to the field function based ontheir predicted yield and on the staff-ing available to work them.

SERVICE CENTERCOLLECTION BRANC H

The service center collection branch(SCCB) is collectiods first point ofcontact with taxpayers who may bedelinquent in filing tax returns andpaying taxes. In 1986 SCCB expandedits traditional role of sending noticesand bills to taxpayers and respondingto taxpayer correspondence . WhenIRS records show that a liability existsand the taxpayer fails to file an in-come or employment tax return,SCCB now t~kes additional action .SCCB will prepare and file the return,assess the tax, and initiate the collec-tion process. (For details on collec-tion data, see tables 13 and 14 .)

INTERNATIONALIRS reorganized and consolidated allof its international tax administrationfunctions - foreign operations dis-trict, examinations internationalprograms section, and the tax adminis-tration advisory services division -into the office of the assistant commis.sioner, international, to strengthen andintegrate the various activities of inter.national tax administration. The newoffice has all responsibility for interna-tional tax program development andcompliance. This responsibility in-cludes assisting in the development oftax treaties and providing technical

n, M. .. ..........

IqW~4 a4l 2 1

assistance to modernize andstrengthen the tax systems of foreignand state territorial governments .

International coordinates informa.tion exchanges between IRS and stategovernments . The new organizationalso administers IRS laws and relatedstatutes tus they apply to US . taxpayersdoing business or residing abroad,corporations and businesses whosebooks and records are maintainedoutside the United States, and non-resident aliens or foreign corporationswho receive or earn income fromsources within the United States. Inthe interest of quality improvement,international plans to change its scopeand direction to achieve long-termeffectiveness in such areas as treatyrelationships, operational research,use of personnel overseas, automation

and federal/state exchanges. Workingtoward more effective compliance,this new office will conduct interna.tional research projects, study compli .ance and taxpayer assistanceproblems and the issues involvinginternational tax consequences.

This office developed, implementedand evaluated programs for the effec .tive examination of the internationalaspects of tax returns, the majority ofwhich involved multinational corpora.tions. Some 400 specially trainedinternational examiners stationed in21 key districts here in the states per-formed these functions . Internationalfurther emphasized compliance in1986 by giving special attention toU.S . taxpayers operating in tax havencountries, violations of reporting re-quirements of the Bank Secrecy Act,high-level drug traffickers, and thePresidential Drug Task Forces . Interms of taxpayer assistance, intema.tional, working at larger US. embas.sies, served over a half million US .

citizens living overseas. In addition,representatives made regularly sched .uled, publicized tours to embassiesand consulates in 72 cities and 35countries . Revenue service representa.tives, stationed in 14 overseas coun .tries, are responsible for developingand maintaining effective relation.ships with the foreign governmentsand expanding political and economiccontacts in their respective countries ,

Working with US. taxpayers in for.eign countries is not the only foreigninvolvement . International adminis-ters the more than 35 tax treaties andagreements the U.S . has in forceworldwide. These treaties and agree.ments provide for information ex.changes and relief from doubletaxation contrary to treaty rules .There are simultaneous examination

programs with Canada, the Federal Liberia and Saudi Arabia, and worksRepublic of Germany, France, Italy on short-term projects with Jamaica,Japan, Norway and the United Km4- Indonesia, Sri Lanka, as well as tile .dom, and cooperative effort- with Inter-American School of Public Ad

Canada, Italy and France to conduct ministration in Brazil . In the US. Vir-bilateral criminal investigations when gin islands, Trinidad and Tobago thethere are alleged significant tax viola . Service surveyed the Lax departments .

tions . The Service exchanges informa- It has given help to the Governmenttion spontaneously with US. treaty of American Samoa and has receivedpartners, Australia, Canada, Denmark, foreign officials to observe IRS pro-the Federal Republic of Germany, grams . IRS has famished instructors

fo tax ractitioner institutes at col.

a revenue ruling providing guidelinesfor plan integration with social secu-rity benefits under the Social SecurityAmendment,; of 1983 . Another reve.nue ruling required that if values un-,,,der an individual retirement account,,(IRA) are guaranteed or can be pro-,jected, the trustee or issuer must in'certain circumstances disclose to theperson buying the IRA what amountsthat person will be able to withdraw.

France, Italy, Japan, Norway, cuen r p EXEMPT ORGANIZATIONSand the United Kingdom, particularly ieges and universities and has give nI-

when information concerns the world . two six-week seminars -r reirpi tax

wide operations and practices of administrators . In addition it gave the

multinational industries . And IRS first in a series of management semi-

shares information returns routinely nars in Spanish for managers from thewith its treaty Partners on income Government of Ecuador.paid from sources within one country The assistant commissioner, intema .

to recipients who are residents in tional, is a member, with others fromthe National Association of Tax Ad-

another f a federal-state coordi.IRS executives are active in the ministrators, 0

Caribbean Organization of Tax nating committee to expand current c

Administrators, the Group of Four, the cooperative relationships between th

Pacific Association of Tax Admimstnl_ IRS and state Lax agencies .

tors, the Organization for Economic Recent successful accomplishments

Cooperation and Development and include joint state.IRS fuel tax excum.

the Inter-American Center of Tax nation programs, training activities

Administrators (CIAT). The 1986 CIAT and long-range tax compliance plan-

Assembly elected the United States to ning .

serve as the First Counselor on the

CIAT Executive Council for 1986-8-7 . EMPLOYEEPLAN S

The IRS hosted the CIAT Technical The employee plans function enforcesConference on the Application ofAutomation for the Increase of Reve- the tax laws governing pension plans

nue in the Modem Tax Administra . by issuing letters determining whether

tion. or not a plan qualifies under the law,

International is involved in almost examining returns to ensure that

every continent. The Service gives plans are complying with the law and

publishing'rulings to clarify the law . Inlong-term Lax administration advice to 1986 the Service issued 341,077 of

Costa Rica. Egypt, Indonesia, Jordan, these letters and examined 20,519

returns .To improve and increase examina .

tions of retirement plans and unions,the Service began discussions withtwo Department of Labor agencies

,

Pension and Welfare Benefits Adminis .

tration and Office of Labor-Manage-ment Standards.

During the year IRS issued severalrevenue rulings providing guidance totaxpayers who engage in arrange-ments concerning adjustments tocertain minimum funding require-ments and the determination of bene-fits on a termination basis in definedbenefit plans. The Service also issued

Responsibility for many of the lawsthat exempt organizations from taxfalls under the exempt organizationsfunction .

During 1986, IRS issued 15 revenue

rulings and procedures and 369 tech-nia advice memoranda . The Servicealso acted on 62,739 applications andrequests for rulings from organizationsand examined 21,837 exempt organi-

zation returns .IRS published a revenue procedure

relieving some self-supported church-

affiliated groups from filing annualinformation returns unless they bothserve the general public and receivetheir support mainly from sales orservices, contributions from publicsolicitations or government funding .

In addition the Service issued regu-lations dealing with inquiries andexaminations of churches. These regu-lations limit the circumstances underwhich IRS agents may contactachurch. They apply to any inquiry orexamination of a church, conventionor association of churches to deter-mine whether or not the group quali-

fies for tax exempt status, Owes tax OF'unrelated trade or business activitiesor is liable for tax for some otherreason. (For additional data on ein-

ployee plans and exempt organiza-tions, see statistical tables 17through 21 .)

MANAGING THETAX SYSTEM

A challenging part of the emssionof the IRS is to manage the tax

system at the lowest cost to thetaxpayers. without compromising

the high level ofiluality and servicetaxpayers should expect. Theseefforts include tile reemitment and

development ofthe most qualifiedpeople. the effective use ofbuildings. equipment and other

.facilities : aped the continuingsearch .for ways to work better andmore efficieniky. Proper

management of any systernrequires proper people using theproper tools ofmanagernent . In1986 a new assistant

commissioner area was estaleffishedto oversee the redesign ofthe tax

system. Research continued into

the areas of low compliance with

the tax lot&-;. And the Service

intemsiffed its efforte; to enhance

the skills and efficiency of its

people .

'7""' ~M~~,Pk 23

TAX SYSTEM REDESIGNThe redesign of the tax processingsystem is a massive effort to replaceand modernize all the ADP equipmentand application software for tax returnand tax information processing. Thesize of such an effort requires an evo .iutionary process that will spawn astate, -of-the-arts processing system inthe 1990s . This system will feature anexpanded and modernized master file,operating from a data base environ .ment at a number of computerfacilities.

IRS processing and compliancepersonnel will have immediate accessto up-to-date and on-line tax returninformation . Telecommunicationequipment and automated informationprocessing will replace the shipping ofmagnetic capes, much of the bulkprocessing, and help reduce the proc .essing, storage and retrieval of moun.tains of paper.

In 1986 a Treasury order estab .lished the office of the assistant com-missioner, tax system redesign, toeffect the planning, acquisition andinstallation of information technologyto satisfy the Service's processingneeds. The electronic filing projectdescribed in chapter one is part ofthis process.

LASER TECHNOLOG Y

Optical disks, which hold thousands ofpages of information and require littlespace, may hold the key to solving theproblems of

Iring and retrieving tax

"toinformation . Present technology wouldpermit storage of 16 cubic! feet of doc .uments on it disk the size of a long .playing record.

in August 1986 IRS began testingthe equipment used to store and re-trieve tax return documents usinglaser technology. The Files Archivaland Image Storage Retrieval test,known as FAISR, should help solvethe storage problem in the future andvirtually do away with the misfiling oftax returns . Future plans include test.-ing other laser possibilities, such assending images to far-off sites, provid .ing return images to other IRS sys.tems and processing tax returns fromimages on computer screens .

;%~,4w4l,W-112 5

AUTOMATED UNDERREPORTER

The underreporter program reviewscases where the computers identify apossible mismatch between an infor-mation return, which reports to IRSincome paid to a taxpayer, and theamount shown on that taxpayer'sreturn . This automated underreportcrsystem will replace the present one,which relies higbly on manual Pa

.

perwork. The new system will enableIRS Lax examiners to examine andclose cases on computer terminals . Itwill also do away with many clericaltasks.

REVIEW OF ADMINISTRATIVEFUNCTION S

in 1986 IRS reviewed all the adminis-trative functions in the National Officewith the idea of moving, combiningor even abolishing some offices to cutcosts and improve operations. TheService realigned the functions in theoffice of the associate commissionerpolicy and management, moved so~coperations to other areas and elimi .0,nated the p sition of assistant Cum-missioner, support and services. Underthe new organization, there are fewerlevels of managers and overhead posi-tions, and managers are responsiblefor larger numbers of employees. Theresults are lower overhead

costs,quicker responses to problems antithe ability to anticipate and deal withfuture issues more effectively.

PAYROLL IMPROVEMENTS

Working with Treasury, the IRS con-thrued to devel op the Federal CivilianPay System, which will combine pay-roll operations of all Treasury Depart-ment bureaus under a single system.The Service also put in place a newautomated personnel system, whichupdates employee accounts directly

IRS began implementing a newautomated training system throughout

the nation, and by the end of 1987,

this system will be in place in 169sites . Employees will then be able to

take courses in thc

ir offices, ratherthan in regional training centers, re,suiting in large savings in travel and*

training time .

from a computer terminal and issues STRATEGIC MANAGEMENTmanagement information reports over- SYSTEMnight . This system helps IRS keep pace with

TRAINING AND RECRUITMENT the environment in which it operates .Through this system the Service ca n

The IRS workforce grew from 96,705 identify trends or changes that affectemployees at the end of 1985 to its mission, formulate long-range goals102,206 at the end of 1986 . The Ser- and strategies to achieve them andvice increased staffing mainly i it the monitor progress in achieving thoseservice centers to bolster the process- goals . In 1986 IRS completed a num-ing of tax returns and in examination, ber of initiatives designed tocollection and criminal investigation strengthen compliance with the taxto boost compliance with the tax laws' laws, manage information technology,

Because employee integrity. dedica. maintain program quality and effec-tion and expertise are critical to a tiveness in the face of rapid changesmoothly run tax system, in 1986 IRS and recruit and retain quality employ-undertook several efforts to remain ees

'The three initiatives described

competitive in recruiting and retaining below were completed in 1986 :high caliber employees . One project * One important initiative comparedaims to improve not only relations methods used by IRS to quality con-with colleges but the IRS image with trol programs used in the priv a'te sec .college students as well; another be- tor. The resulting report recommendsgan efforts to better forecast staffing a model system for the service centersneeds and streamline recruitment and district offices which uses on-lin eprocedures. Four offices started testing reviews to lower the number of errorsprograms to assist employees in ca . and correct more quickly those errorsreer choices, financial matters, reloca . that do occur.tion and person al problems. Two sites - Another report on joint efforts withbegan pilots of new health improve- state tax agencies has led to the estab-merit programs to help employees lishment of a federal-state coordinat-

keep physically fit, with 11 other sites ing committee, made up of IRS and

scheduled to start in 1987. state agency officials . The committeeThere is special emphasis on help- has agreed to pursue joint efforts in

ing managers and employees cope training, taxpayer service and compli-with the growing presence of the com- adce matters, including training forputer in the workplace. Focus 86, a field executives on ways to enhanceprogram on managing in an auto . joint cooperative efforts with themated environment, gave service cen. states .ter managers a better understanding - The third report deals with the needof the functions in their various offices to educate self-employed taxpayers onand how they affect one another. New their tax obligations, it calls for long-in-depth technical training helped term relationships with institutions inemployees in service center computer the public and private sectors to meetdivisions become more effective in the educational needs of the self-eni~their work. ployed. Other recommendations in-

clude more tax information for the

SPACE MANAGEMEN T

in the past and for the most part, theGeneral Services Administration hasmanaged the buildings the IRS usesboth in Washington and in the dis-tricts and regions. During 1986 theService took over the operation andmaintenance of the Brookhaven Ser,vice Center in Holtsville, N .Y, and theheadquarters building in Washington,D.C., and will assume responsibilityfor 11 additional buildings during thenext year. The objective, under a 1985executive order, is to give manage-ment flexibility in the use of propertyand to improve the quality of theworkplace for employees.

self-employed and better ways of get .ting that information to them, as wellas a Servicewide commitment to edu .cating self-employed taxpayers and toincreasing IRS awareness of the com-pliance problems in that area,

RESEARCH

IRS research efforts focused onstrengthening voluntan, compliance,cutting costs and improving the effi-ciency of operations, and identifyingand analysing trends reflected in thestrategic plan. The electronic filingproject described in chapter one re-sulted from these research efforts .

The rapidly advancing technology ofartificial intelligence offers great po.tential for increasing both quality andproductivity. IRS has set up an artifi .cial intelligence laboratory, and to staffit, has trained a select group of IRSemployees at universities consideredto be at the forefront in this field.

Other important research projectsduring the year included :• Development of a computerized'

model to give government officialsready estimates of the impact onrevenue of budget increases in IRS'revenue-producing enforcementprograms ;

• A completed report on alternativefiling methods, which showed thatmost taxpayers are either opposedto or indifferent to staggered tilingdates, or an extension of the filingdeadline to July 30 or September30 ;

• The development of a model todetermine the best locations forposts of duty in a district, with thepilot test scheduled to begin in theJacksonville, Florida, District in1987 .

THE TAX GAPANDCOMPLIANC E

One of IRS' greatest concerns is thetax gap, that is, the amount of taxeslegally owed that is going uncollected.The Service is studying in great detail

the size, composition and growth ofthe tax gap. Studies now in progressfocus on income that individuals re-ceive from partnerships, small busi .ness (Subehapter S) corporations,sales of goods furnished by informalsuppliers, tips and other sources . Asrequired by Congress, IRS is updatingtax gap estimates published in 1983and projecting them through 1992.The new estimates will help planmethods of lowering the tax gapand focusing on specific complianceproblems .

The Service is also studying ways ofusing computers to deal with thesecompliance problems . The aim is toisolate specific abuses, then resolvethese cases through correspondenceand avoid costly and time-consumingexaminations . These studies includeefforts to identify unreported incomefrom real estate sales, payments-in .kind and taxable pensions and annui .ties, as well as ways to disallowimproper deductions for contributionsof property, such as works of art .

COMPUTER SERVICE S

This year IRS created a user-assist.ance and computer-capacity manage .ment office, which combined in asingle area the responsibilities forensuring the equipment could handlethe workload, integrating systems andhelping employees when they metwith problems. Newly-formed com-puter services divisions in the servicecenters, fully staffed with hardwareand software experts, were on call 24hours a day, seven days a week. Inaddition, a newly-established com-mand center in the National Office,also working around the clock, keptan eye on the returns processing sys .tem throughout the IRS to alert theservice centers of actual or potentialproblems.

The Service awarded a contract toreplace some parts of the IntegratedData Retrieval System. This systemallows service centers and districtoffices to research taxpayer accountsand to make changes to thoseaccounts . The aging terminals experi .enced frequent and costly break.downs, and the communication

processors installed in the late .1970scould no longer accommodate thevolume of transactions .

The new system will help processthe workload faster and provide thecapacity to handle the expectedgrowth in the workload .

INSPECTION

Inspection, headed by the assistantcommissioner~ inspection, reportsdirectly to the deputy commissionerand commissioner of IRS, therebyassuring the complete independenceof the inspection organization .Through its investigative activities,inspection assists in assuring the high .est standards of honesty, integrity,loyalty and security among it, ; employ .ees . Inspection also provides a con .structive service to managementthrough its internal audit reviews andappraisals of IRS operations . The rec .ommendations coming from thesereviews enable those responsible offi.cials to tahe actions to improve theefficiency and effectiveness of opera-tions and to improve internal controls.

i Research continued

nto areas oflow

compliance with

the tax laws.

!6

During 1986the automated poten- were alow to identify and resolve M-

INTERNAL SECURITY payer and employee errors. The iden .tially-dangerous,mpayer system, heseldnds'cation tificatior4and resolution of t

A commitment to quality and service which allows ready identifi of errors can significantly add to set .must begin with reassurance to tax- of taxpayers who might present a ipayers that IRS employees live UP to danger to IRS

employees, continued vice center, collection division and

in alerting taxpayer service workloads .the highest standards of honesty and to play an important part nded, amopgintegrity, and that these employees employees to potentially dangerous The report recomm

eseveral changes' that IRS assign re-tecte

-will be pro _ d from efforts to cot situations sponsibillity for federal . depositrupt or threaten them while carrying in 1986 the Service investigated s to a single service centerout their duties . These tasks lie with 593 cases of alleged employee miscon . procedure

d create an informationsecurity division. The duct . In the 398 cases where momage- manager an

the internal 'tion 134 resulted in system to monitor the processing ofhigh level of integrity of IRS employ- ment took ac

'nd alert managers to

ecs is evident in the cooperation inter. employees being cleared, while 264 these deposits aiving potential problems . other important

nal security receives in detecting cases resulted in employees rece ions include a methodfraud and corruption. such disciplinary actions as seporra- recommendat cpayer's name and

One such example involved an em, tions, suspensions and reprimands. for checking the tw

ed identification number before they areployee who reported a co-worker',s Internal security also cOmPlet to err-'round investigationson printed on the deposit cOuPO Ususpicious behavior showing Potential 2,973 backg year and con- sure that deposits are applied to thecriminal misconduct. The ensuing employees during the ~investigation disclosed a conspiracy ducted police record checks on per

. right taxpayers and a check (in namea taxpayer and !red for temporary and identification number before the

involving an employee, sons considI

an accountant who were attempting to appointments. deposit is entered in the master fi e to

identify erroneous deposits sooner.defraud the government of $1 .6 mil- Management agreed with these pro-lion by filing returns to get tax refunds is taking steps to correc t, Pro

e'mS .*that had gone out of INTERNAL AUDIT sals andfor corporations the bPusbusiness and by abating taxes, penal- The internal audit division reviews Besides improving operations andties and interest due from several operations throughout the IRS to find giving managers the ability to fixtaxpayers. The investigation led to ways to improve the efficiency and problems more quickly, internal auditprison terms for the three CO . economy of operations and ensure the lace by

conspirators . effectiveness of service programs and recommendations Put in P

Another important investigation internal controls- management in1986 will yield $605

involved the leader of a tax Protest Audits range from on,line reviewsof million in added revenues and cost

savings. The recommendations requir-group who had contracted for the major systems acquisitions such as ing long-range actions will yield an-murder of an IRS special agent. Dur . the automated collection system other $690 million.ing the investigation, this individual (ACS) and major Service programs Internal audit also reviewed its ownalso indicated that he would organize such as returns processing and the operations extensively to find bettera team to kill those judges who he Tax Reform Act of 1986 to managerial ways to improve their quality andbelieved had deprived people of their compliance with internal controls at efficiency . one result of this reviewrights. lie too was arrested, convicted the district and service center level . will be more local audit coverage with-

In one review, internal audit studied outduring decreasing national coverage lev,and sentenced to prison. els and more timely feedback toInternal security investigations led the causes for major problems recom

.to the arrest or indictment of 158 non the 1985 filing season. The 36 service management on its qualityIRS individuals and 77 current or mendations to management addressed initiatives . This increased coverageformer IRS employees. Of the 259 the major problems, such It, inexperi, will be accomplished through moreas

taken enced e efficient use of resources and im-cases where judicial action w mplovees at the service cen-in 1986, 236 resulted in convictions ters ineffective controls for findin

- 9proved techniques.

or guilt), pleas, while 23 resulted in and'correcting documents and i mdismissal or acquittal . Assaults and proper processing of magnetic tapesthreats decreased moderately in 1986 with tax and payment information.with 947 investigations, compared to a Another important internal auditrecord number of 955 a year earlier. A report focused on federal - deposits

total of 28 persons were prosecuted in made by employers to cover their1986 for assaulting or threatening IRS payroll and other taxes . Auditors

employees . found that more than 700,000 O fthese deposits totaling $6 .5 billionwould result in incorrect bills, penal .ties, refunds or inquiries for delin .quent returns because control systems

tAT4, j~"~jrnt. 'e*~A- 2 7

INTEGRITY PROGRAMThe combined efforts of internal auditand internal security focused on pro .grams to prevent and detect fraud.Internal audit completed 26 audits ofhighly-vulnerable areas, such as identi .fying control weaknesses which al .lowed an imprest fund cashier toembezzle $8,000; and inadequateprocedures for processing automatedcollection system (ACS) site mailwhich enabled a mail clerk to stealapproximately 12,000 pieces of mail,including 850 remittances totaling$800,000 and 533 unprocessed origi.nal tax returns. Internal security con.ducted 25 tests of high-tisk activitieswhere there is potential for corruptionthat could affect IRS integrity. Duringthe year, the division conductedprobes for the purpose of determiningthe extent of narcotics usage and at-tendant usage of embezzled funds toprovide the narcotics. In one particu.lar test, three individuals who con .spired and embezzled $75,000 inremittances for the purpose of financ .ing the distribution of narcotics weredetected, arrested and sentenced toprison terms: Internal security madepresentations to more than 23,000new and incumbent employees toenhance their awareness of the highstandards expected of Service employ.ees and to provide guidance in therecognition of potential hazards.

Cost orcollecting $100

in 1986: 49 cents.

PRODUCTIVITYIMPROVEMENT

In an effort to improve productivity,IRS works not only through its ownprograms lout also through govern .ment-wide productivity initiativeswhich show promise of either morerevenue or lower costs . During 1986the Service funded 13 of this typeproject. Some examples include :0 A system to automate the updatingof the Internal Revenue Manual : Thismanual includes internal proceduresfor all IRS functions . Change and re-view of the manual required combin-ing pen-and-ink entries from severaloffices . The automation of this processshould result in faster, error-free re-views so that the manual is in thehands of employees with up-to-dateinformation . To taxpayers, this meansuniformity, consistency and equity inthe way their cases are handled .- A processor to read and collatecancelled checks : This equipment,now being tested by criminal investi .gation in the Pittsburgh District, readsthe magnetic ink on the bottom of thechecks, records the numbers and cre-ates a cheekspread. The process iscritical for reconstructing a taxpayer'sincome for the year and will saveconsiderable time and labor over thepresent manual system.

A system to store and research trialdocuments : This system electronicallyreads and stores typewritten materialsuch as pleadings and motions, thensearches for information based on keywords given by the researcher. It isused primarily to prepare for trial .

In 1986 IRS had $600,000 for fund-ing projects such as these . Beginningin 1987 there will he $2 million avail-able for central and regional funds andfor awards, since many of these ideascome from employee suggestions .

The Service is committed to reviewover 300 activities such as mailrooms, motor pools, engineers, andADP services to determine if they canbe carried out more cost-effectively byprivate sector contractors . In only twoof 18 reviews finished so far has anoutside bid been more economicalthan in-house performance: documentdisposal in the Cincinnati ServiceCenter and over-the-counter formsdistribution in Baltimore District. In1986 there were 82 of these reviews

'011A413~~'_'

in progress, with another 252 to befinished by the end of 1989 . To makethe process itself more efficient, IRSplans to centralize the review

of multi-site activities such as machine serv.ices (10 sites), returns files (10 sites)and records research (60 sites).

The Service, looking for productivity gains by improving managementactivities' is tracking 10 functions that

directly affect the public, suchas examining returns, collectingdelinquent taxes and processing re-turns. The projects resulting fromthese reviews include the electronicfiling project, the integrated collectionsystem and the automated examina.tion system, all discussed in earlierchapters.

CASH MANAGEMENT

IRS continued effort,; to speed up thedeposit of tax payments to save gov-ernment interest costs. Use of theTreasury Department's lockbox net-work for the second year to receiveestimated tax payments from Floridaand Illinois taxpayers saved over $10million in 1986 .

STATISTICS OF INCOME (SOI)

IRS contributed to the new tax reformlegislation in many ways, but particu-larly by preparing tax return statisticsfor the Department of the Treasury'sOffice of Tax Analysis and the Con.gressional Joint Committee oil Taxa-tion. These statistics are critical fordetermining the impact on revenue ofpresent and proposed legislation .

The Service issued statistics of in .

comepublications covering individual

income tax returns for 1984 and cor-porate income tax returns for 1983,

source books showing detailed finan-cial data for corporations and partner-ships for 1983 by industry and acomprehensive publication addressinginternational tax issues. In addition

IRS published the quarterly SOI Bul-letin, which presents key data in ad-vance of SOI reports or in place ofSOI reports formerly published . Fi-nally, IRS issued the individual in-come tax model for 1984, which is amicrodata magnetic tape file consist-ing of selected income, deduction andtax items taken from a random sampleof individual income tax returns. Thisfile consists of approximately 94,000unidentifiable records representing

the 99 million returns filed. Tile pri-mary use of the file is to simulate theadministrative and revenue effects oftax law changes.

DIRECTOR OF PRACTIC E

The director of practice administersand enforces regulations for individ-trals who represent taxpayers beforethe IRS.

In 1986 IRS published new regula-tions requi ring continuing professionaleducation for enrolled agents, individ-uals who~ after passing an examinationon tax law and administration, havethe right to represent taxpayers beforethe IRS and the United States TaxCourt . Enrolled agents must havecompleted 24 hours of tax-relatedcourses by January 31, 1987, then 72hours in each subsequent three-yearperiod. There are over 36,001) en-rolled agents, including 1,916 whopassed the test in 1986 .

The Service also began work onuniform standards of care for tax prac-titioners who advise their clients onpositions taken in tax returns . Thenew standards will replace divergentand often conflicting criteria for thedifferent professions which practicebefore the IRS . When in place, thesestandards will provide guidance topractitioners, taxpayers and IRS em-ployees about the type of advice prac-titioners may give without concernthat they will be subject to disciplineby the IRS

.In 1986, the Service took

disciplinary action against 117 attor-neys, enrolled agents, enrolled actuar-ies and others for violations of theregulations.

LEGISLATIVE AFFAIRS

The legislative affairs division nioni-tors; the progress of tax and any re-lated legislation which is of interest"tthe service . The division develops ..'legislative proposals and coordinat -swith other service activities in thedrafting of legislation, prepares andmonitors plans to implement newly-enacted tax legislation, and developstestimony for delivery by IRS officialsbefore congressional committees. Atthe close of this Year, the division wastracking nearly 130 bills, and haddeveloped or reviewed a number oflegislative proposals .

The division has been working withthe tax reform process since 1984,and during 1986 continued workingclosely with the tax committees in theI louse and the Senate, as well as theConference Committee, as the taxreform bill moved into its final form .

Tax reform was not-the only con-cern of Legislative Affairs in 1986 .The division also coordinated prepara-tions and follow-up activities for 23congressional hearings, handled 41final and IS draft General AccountingOffice issuances, and answered nearlyliptio congressional telephone inqui-ries and over 8,400 written congres-sional and other requests .

The division issued the second edi .tion of the "Guide to the InternalRevenue Service for CongressionalStaff' and delivered the third annualcongressional "kit" of tax forms andpublications to nearly 2,000 congressional offices nationwide. They issuedlegislative fact sheets as needed onsuch pertinent topics as the provisions

ofthe Consolidated Omnibus Budget

Reconciliation Act (COBRA), andpublished the first Legislative AffairsUpdate, a means of sharing informa-tion with field and National Officeexecutives .

~Amw~=wov 'wo.--rTry

)Mw~*Z0~~

COMMITMENT TOQUALITY SERVICEIn keeping with a serious cbmmit-ment to improving quality service-wide, the Commissioner establishedQuality Council, composed of theassociate commissioners, regionalcommissioners (North Atlantic andWestern) and ev officio, the assistantcommissioner, human resources andmanagement support and the execu .tive secretary During 1986, IRS con .ducted extensive training ofexecutives and managers in the prinei .ples of Dr. Joseph Junin, a noted qual .ity expert, particularly the JuranTrilogy : quality planning, qualitv con .trol and quality improvement, and hisdefinition of quality as fitness for useand conformity to specifications.

Dr. Juran gave one day of a two-dayseminar to senior executives, andFlorida Power and Light personnelwith IRS people from the Ogden Son,.ice Center led the second . Both Fl .r.ida Power and Light and the OgdenService Center have successfully ap-plied Jurans theories . Selected facilita .tors from each region and assistantcommissioner area then attended atwo-week team leader and facilitatortraining course taught by FloridaPower and Light . In addition all candi-dates in the Executive DevelopmentProgram receive training in the practi .cal applications of Dr. Jurans philoso .phy.

Training of employees is but oneaspect of the commitment to qu6:tyservice. IRS adopted five quality prin .ciples as a polio), statement which, insummarY, address a quality climate,product and service quality, respon .siveness, the quality improvementprocess and evaluating systems con .sistent with and reflective of theseprinciples.

M-~ w wtc~~ln;. 29

EQUAL EMPLOYMENTOPPORTUNITY (EEO)The Services concern for it, ; employ .ees and applicants is evident in itsEEO Program. Not only did the in .crease in the overall numbers ofwomen, minority and handicappedemployees in the Service continueduring 1986, but EEO Program admin .istration was itself advanced in threeareas: training of EEO Program offi .cials : automation of certain EEO re-porting and monitoring process-, and,establishment of four regional com-plaint processing centers

.The delivery of timely and relevanttraining for those IRS employees whoserve in full-time, part-time, or collat .eral duty EEO positions is the subjectof a special initiative . During 1986 theIRS published seltinstructional mate .rials for managers and EEO programofficials and the newly designed class .room materials for EEO CounselorTraining.

As part of its streamlining of theadministrative complaint process, theTreasury Department established fourregional complaint centers. The cen.ters, located in Washington, D.C. ; Chi-cago, Illinois ; Dallas, Texas; and SanFrancisco, California. will providecomplaint processing for all Treasurybureaus located within a defined geo .graphical arm The goal of the centersis to reduce the time required to proc .ess a complaint of discrimination filedagainst the Treasury Department and,thereby, enhance the credibility andviability of the system for those em.ployees and applicants who may havea concern about discrimination . Asignificant improvement in the quickprocessing of IRS complaints has al .ready resulted from the delegation ofcertain complaint processing authori .ties to regional commissioners, re-gional counsels, and regional EEOofficers .

In addition, the Service completed astudy on providing reasonable accom-modations for handicapped employeesand members of the public under

Sections 503 and 504 of the Rehabili .tation Act of 1973, as amended. Theresult was the approval for clearanceof a new Policy statement on reason .able accommodation .

In 1985, the IRS began a two-yearPilot Program with Historically BlackColleges and Universities (HBCUs)Pursuant to Executive Order 12320.During the pilot, the IRS provided, atno cost to the host institutions, in .structors in accounting and incom e

for seven institutions and over1260 student-;. In 1986, the IRS de .cided to continue the program whichrelies on funding provisions of th eI nter-Govern mental Personnel Act andto expand the role of its instructors toinclude recruitment at the HBCUs .

Increase in overall

number,,; of women,

mi iron 0y and

handicapped

emplclyees continued.

%7151 V1.71

30

TAX REFORM LEGISLATION in order to publish Service positionCHIEF COUNSEL on additional significant emerging tax

I A lar e role in - f c nsel continued to

Tire office of chief Counsel

functions as tire legal counsel to tire

Commissioner OfInternal Revenue,

represcuting the Coin joissioner tn

caseafiled with the US . 7hx court.

providing legal advice to IRS

personnel. preparing ridings.

procedures and regulations to

provide guidance to the IRS and the

public and advising on tire

administrative aspects of proposed

legislative changes-

Chief Counsel p aye a , issues, C e on

the development Of the new tax re- identify issues for publication from

form act . Attorneys from the legisla- sources other than letter rulings andtion and regulations division and the technical advice memorandums, suchemployee plans and exempt oiganiza- as submissions from various prof4s:

Units division participated in drafting sional and industry associations forsessions, reviewed and commented on requested guidance and tax articlesdraft legislation and committee re- from a number of periodicals and

ports and attended mark-up sessions. journals . Some examples include: Be%,.

Special task forces analvzed all Rul . 86-124,1986-44 IRB 4, which

phases of the evolving legislation - provides guidelines prescribing thethe Administration's proposal, the manner in which the income limitsHouse Ways and Means Committee applicable to mortgage revenue bonds

spreadsheets'

and the Senate bill . By and mortgage credit certification areidentifying numerous technical prob- to be applied to meet the require-lems in reform provisions and devel . ments of Section 1201 of the Tax Be-

oping solutions to marry of them, the form Act of 1986; and Rev. Rol . 86-97,

task forces were able to correct potcn~ 1986-3 .3 IRB 4, which provides guide-

tial administrative problems in the lines for determining whether a

law. Both IRS and taxpayers will bene- pickup truck or van meets the defini-

fit by being spared from having to tion of a "qualified nonpersonal use

wrestle with rules that would not work vehicle ." in addition, the Service i s

as intended and could be impossible increasingly using revenue ruling, andto administer, revenue procedures to provide guid-

Another benefit of the detailed anal- ance in areas not yet covered by rcgu-

ysis of the legislation as it evolved was lations .that the task forces laid the ground-work for timely implementation of the INTERNATIONAL ISSUESmost far-reaching tax changes in ove r

30 years . Even as congressional delib . Chief Counsel established the new

erations on the bill continued, Chief office of associate chief counsel, intera.Counsel w s making tentative judg national, which parallels the new of

ments on the schedule for issuing the fice of assistant commissioner,most urgently needed technical guid- international, discussed in chapterance, Attorneys began work on marry three. This major reorganization cornof these projects even before the Pres. bines in one area the many interna-

ident signed the law. tional operations and responsibilitie sProviding timely guidance on new that have previously been divided

tax legislation is an important part of between the litigation and technicalthe emphasis on quality. With assist- functions of chief Counsel . The dutiesance front taxpayers and practitioners, of the associate chief counsel, interna-the of Chief Counsel is deciding tional, include advising the new offic e

office t commissioner, interns,which issues require early guidance, of the assista nand is working diligently to address tional, on tax aspects of internationalthese issues as soon as possible . transactions.

Because of the importance of regu-lations projects in the internationalarea, Chief Counsel is holding round-table conferences with tax practitiOn .ers on the status of regulations pro-

jeers and the interpretation ofproposed and temporary regulations,including those on outbound transfersof business property, Possessions cor .poration tax credit and overall foreignlosses . This office participated in ongo .ing tax treaty negotiations, includingthose with India, Turkey, the Nether-lands Antilles and numerous Carib.bean Basin countries .

REVENUE RULINGS ANDREVENUE PROCEDURE SThe IRS published 211 revenue rul .ings and revenue procedures in 1986 .

After an evaluation of the publica .tion program for revenue rulings andrevenue procedures, several changeswere made during 1986 aimed at in .creasing quality and timely service tothe public. These changes includedrevising the way of drafting and clear-ing proposed revenue rulings andprocedures, and developing a "fasttrack" system for publishing the Se,ices position on significant issues.

Chief Counsel also intensified itsprogram for developing automaticchange revenue procedures in thearea of accounting methods and peri.ods. Without the benefit of revenueprocedures granting automatic ap-proval of changes in accounting meth .ods or periods, taxpayers, because ofthe Senice's heavy workload, wouldhave been required to wait severalmonths before receiving a ruling on arequested change . By relving on arevenue procedure, taxpayers no", canmake routine accounting method andaccounting period changes under theguidelines that would have been ap-plied had they requested a ruling.

PRIVATE LETTER RULINGS ANDTECHNICAL ADVICE REQUESTS

Chief Counsel acted On -12,500 re .quests during the yearmcluding15,000 involving accounting methodsand periods .

The rulings divisions continued torule and provide technical advice on anumber of significant issues, such as :

- whether a limited partner hasbasis in a partnership interest becauseof a contribution of a letter of creditand assumption agreement to thepartnership ;

*whether employees participating

in a nonqualified deferred compensa-tion plan are currently taxed on con .tributions made by an employer ontheir behalf to a so-called "rabbi"trust;

I what is an acceptable method forPhasing costs of nuclear facilities intothe rate base without violating nor-malization rules ;

- whether costs of package designshould be capitalized;

I whether the costs of abandonednuclear power plants are deductibleby a public utility ;

- and whether the conversion of amutual life insurance company to astock life insurance company qualifiesas a tax-free reorganization .

ADMINISTRATIVE APPEALSThe appeals division is responsible forresolving tax controversies, withoutlitigation, on a basis that is fair to boththe government and the taxpayer, andin a way that enhances voluntarycompliance and public confidence inthe tax system . Appeals officers, lo .cated in major cities, meet with tax.payers and their representatives andare usually successful in resolving thedisputed issues .

During the year, appeals did a sur.vey to measure the taxpayers' satisfac .tion with the appeals process . A largemajority of the taxpayers surveyedsaid they are happy with the courtesvand competence of the appeals offi . "cers and the fairness and impartialityof their decisions .

In 1986 the valuation branch, for.merly a part of the individual tax divi .sion, became part of the appealsdivision . This branch'helps establishthe fair market value of financial as .sets, real estate, art objects and intan .gible property. During the year the artadvisory panel recommended adjust .ments of $16 .7 million, lowering thevalue of claims for property donatedto charity by a net of 54 percent andincreasing estate and gift appraisals by75 percent net.

The appeals tracking system, a com.puterized information managementsystem, was brought on line nation.wide in 1986 . This system providesthe ability to determine the currentstatus of any appeals case, includingthe appeals officer assigned. dollaramount involved, and statute of limita .tions deadline . Appeals also launcheda long-range planning effort to ensurethe division's effective-and efficientoperation well into the 1990's whilemaintaining its present high standardsand quality.

During 1986 appeals offices reachedagreement in 90 percent of the29,967 cases closed that were dock .cted in the Tax Court and in 85 per.cent of the 37,043 nondocketed cases.Of these 67,010 closed cases, 19,874or 30 percent were tax shelter cases.In addition, appeals closed 4,491 pen .alty appeal and employee plan/ex .empt organization cases .

32 i -,% V3 3

MANAGEMENT INITIATIVES

in 1986 Chief Counsel completed theimplementation of the counsel- auto-mated tracking system nationwide .The system now gives managementand ' cys the ability to retrieveinformation such as litigation due"no mdates, a Cross reference of cases byrelated projects and issues, and vari-ous case and management reports .Counsel started a continuing manage-ment education program, providing acomprehensive management trainingprogram through in-house and vendor-sponsored seminars for its executivesand managers .

Based on the successful use of para-legals in " Angeles, Manhattan, andother district counsel offices over thepast several years, the Chief Counselapproved a 150 percent increase inthe number of paralegals in field of-fices. Paralegals will play a major rolein all aspects of field activities allow.ing field attorneys to work on 'themore complex and challenging cases.

Rt,gi..REGIONAL OFFICES North AtlanticCASELOAD REIIORT- tlid-Athriti.

ALL CASES Southeas tCentra lmid-tskarthwestW"ternTotal region ,National officeGrand total

Recruitment and hiring of attorneyswas decentralized to the regionalcounsel and associates chief counsel.An automated recruitment processgives each region access to a com-puter data base containing nantes ofapplicants for attorney positions, theirlaw school, class standing, preferredemployment locations, and other in-formation .

The rulings division also receiveddirect-hire authority, putting them onan equal footing with the rest of theChief Counsel in aggressively seekingto hire the best qualified applicants .The associate chief counsel, technical,and the five division directors began aprogram of visiting law schools tointerview applicants and to speak atrecruiting seminars.

CASE MANAGEMEN T

During 1986 Chief Counsel studiedthe distribution of attorney staffingand Tax Court receipts and inventoryamong the seven regions . Based onthe study, counsel began adjustingstaffing levels, with increases going tothe southwest and western regions,and transferring some Tax Court casesamong the regions to increase effi-ciencyand distribute the work moreevenly.

pendingOct. 1. 1 9S5 Reccieed '

15.376 13.17 913.499 10.41 010.837 11.0586. 1) 0 S 9.5359 .8s.5 9.56 1

14.528 11.68436.287 26.48 1

107.317 91.90 82.029 599

109.346 92 .507

I Receivedstatista~ are net numbers, i .e., actualnumber of ctu~ received plas ., minus tram,,fers andadju,stmenu, to prior years~ receipts .

in the criminal tax: area, the mid-west region pilot program, which pro-vidcs a mechanism for resolving thecriminal aspects of a case on an expe-dited basis, was extended nationwide .Cases which qualify for this progiamare those in which

.a taxpayer isf.epre-

sented by counsel and expressiis anearly desire to enter into plea negotia-tions .

The general litigation division alsobegan studying possible ways of reduc-ing the number of bankruptcy casesbeing referred to Chief Counsel . Sincethe Bankruptcy Code became effec-tive in 1980 the number of cases hasincreased dramaticallv. In 1980 dis-trict counsels received 3,811 cases; in1986 that number rose to 10,941cases, ail increase of 187 percent Thisnow represents over 36 percent of thetotal time spent by field -attorneys ongeneral litigation cases.

PendingiNsp.-d Sept . 30,198 6

12.619 15.9369,469 14.440

10.136 11 .7596.515 9.9258.238 M20 8

10.074 16 .13816,778 45 .99 073.829 125.39 6306 2.32 2

74,135 127.718

CourtAction

TRIAL COURT Decided in favo rCASE RECORD of the governmen t(Opinio- e .dtrcd- Decided in favorrefund litigation )

UNITED STATESTAX coun-OpINIONS

for the government

19s.5

DistrictGoto-i

1 9S6 198.5Number 41 46 16 7P-ent 66 .1 76.7 65. 7Number i s

taxpayer and partially Number

of the tti.p.-

Decided partially for

Total opinion,%5.0 9.1

Tota l111 1 6 viss 19st,"4'- - -(is 3 2H

71 .8 65 .s 72 . 464 90 S'- 101

25 .9 22 3

21 2(, 245 .3 S., 5.3

-62 60 1-54 39 3

luhhhed,Summary & So 11 Memorandum &Tuee ease bench Regular beucj~"Itinito. opinto"

P-liling 1-tv (1-devii.. line) 7,Ts5-Tsc, -19S5 11186 198 5Decided in favorof the governmen t

Decided in favorof the taxpaye r

Decided - Role 15 5

Nli~.elhureota,

Total opinion,

44 153.4 4N.6

30 I s4 .5 3. 12(,S 339

Total198 6

351 813 7053') .9 50.8 45 .7

54 6 1.1 . 5 .3.4 4. 0

.3"6 614 66 4

.116 453

40.4 37 .4 45.()99

38 .4 43.0W2 119 113

1.7 10.9 11 .6693 663

Four outxianding Chief Coullsel

attorneYs were appointed us visiting

Professors at leading law schools.

2 3

percent 1-9 .1 18.3 15 .2 22 .9-

1'ercent 4 .8

Number 37,- - .1.5 4pt,rttau 53. 7Number 2 6Pere.to 3 .8Nurnher 1-75Percent 39 .7Number 20percent 2.9 7 .4 7.3

907 NNO 1,600 1 .543

CONTINUING PROFESSIONALEDUCATION

The New York Uni,ersitvARS Continu .ing Education Program ' Pleted its

e" msixth Year in 1986. Ten graduate-leveltax law courses and four advancedseminars were offered during 1986.Full-time tax law professors, selectedfrom the country's leading lawschools . teach the courses and semi.nars . During the first six years, 2,809Chief Counsel Professionals com .pleted courses and seminars in thisprogram .

All states requiring continuing legaleducation for attornL

-vs who want to

maintain bar certification have ac .cepted these courses and seminars infulfillment of their requirements .

i-- Ag zp-

17-11~x~ve,(l`,- 3 5

ACADEMIC INTERNSHIPSAND EXTERNSHIP S

The summer of 1986 began the fifthyear of the professor-in .rLsidence pro-gram in which two professors eachspend a year in Chief Counsel's office .During their residency, the professorsprovide legal advice to the Office ofChief Counsel, familiarize themselveswith the varied problems confrontingsenior tax administrators and researchsignificant issues.

During 1986 four outstanding ChiefCounsel attorneys were appointed asvisiting professors at leading lawschools . As visiting professors, theseattorneys teach tax law subjects anundertake research assignments lea -ing to law review publication .

REGULATIONSDespite the demands of tax reformlegislation during 1986, Chief Counselhad drafted in preliminary or finalform 76 percent of the 426 projects atthe end of the year ; 137 were eirculat-ing for signature or comment . In addi-tion, a number of significant proposed,final or temporary regulations werepublished. Among these were projectsdealing with original issue discount,taxation of fringe benefits, the treat-ment of a partner's distributive sharefrom a parntership, partnership andchurch audits, and the treatment ofcertain stock acquisitions as assetacquisitions.

Chief Counsel also published scv-cral major projects in the tax exemptbond area, a comprehensive set oftemporary and proposed regulationson various technical issues under theemployee benefit plan provisions ofthe Ta~ Reform Act of 1984, and finalregulations on procedure and adminis-tration relating to the classification forfederal tax purposes of investmenttrusts with multiple classes of owner-ship.

LITIGATION

The litigation function of Chief Court-so] continued to seek ways of closingthe existing Lax shelter caseload,which now accounts for over 50 per.cent of the Tax Court's inventory. Thegoal is to dispose of these cases on afair and reasonable basis as quickly as,possible .

To ensure that oases having broadlegal significance or large tax deficien .cies are given the attention they de-mand, senior attorneys in the specialtrial attorney program, internationalspecial trial attorney program andindustry specialization program han .dle them .

INDUSTRY SPECIALIZATIONPROGRA M

Over 100 employees from severalareas of Chief Counsel participate inthe industry specialization program.Using their expertise in the practicesand issues of 17 major industries, suchas pharmaceuticals, banking and rail-roads, teams of attorneys tender ad.vice to the examination division andits industry specialists to assure thatissues arising in specific industries getconsistent treatment. Attorneys werereviewing 86 industry-wide issues atthe end of the fiscal year.

RECEIPT AND ]'ending Oct . 1 . 198 5

DISPOSXL Received during yea r

OF GENERAL Dispota,drd

LITIGATION CASES Pending Sept . 30.1986

Court

20.32 8

26 .103

25.746

20.685

SPECIAL TRIAL ATTORNEYS

The special trial attorney staff ex-panded from 22 to 29 with the crea-tion of one additional position foreach region to be devoted to intertia-tional cases. Special trial attornl~shandle the largest, most sign Wittand most difficult citses in the country.The program won some importantcases during the year, highlighted bythe significant wins in Gu(( Oil Corf).u Commissione r

EMPLOYEEPLANS

The Lax litigation division is develop.ing a specialized staff to expand itsinvolvement in the employee plansarea. Its objectives are to representthe assistant commissioner, employeeplans and exempt organizations, bylitigating Tax Court declaratory judg-ment cases and by coordinating dis.trict counsel and Department . ofJustice employee pla

'It litigation . The

special staff also provides litigation-related advice to the assistant commis-sioner's staff, district counsels and theregional commissioner,%' staffs .

Norr-courr Want

1 .503 21,831

7.316 33.41 9

7,263 33.009

1 .556 22.241

All Tux Couff Q..

UNITED~TATES

TAX COURT CASES

On th oatri&

of doll-)

PendingOct . 1 . 1985,

Tax, and penaltiesNtunber 1'. Daf-of" disynne rained

72 .836 $13.777.406Rucci-d 48 .787 5.892.338Disposed 37 .937 3.340,597 $7.58tS64Pending

Sept . 30.1986 83.686 16,31-9 .14 7

'Includes incomc, PI-fits, estate and gift anddeclaratory judgme.t cas _'Adio,aed to reflect U.S. Tax Court figures.

A91

i~prj

ABUSIVE TAX SHELTER SThe tax litigation and criminal taxfunctions continue to assist the IRS inits effort to identify promoters of andinvestors in abusive tax shelters andto bring the activities of the pro .moters to a halt through the use ofinjiunctions, prosecutions and penal,ties . Pre-filing notification letters weresent to investors with informationconcerning the tax ramifications oftheir transactions with specific taxshelters. Certain Promoters challengedthis procedure, hut through the effortsof the disclosure. litigation divisionthe government prevailed in bothdistrict and appellate court proceed .ings on this issue. An appeal, however,is pending for one adverse districtcourt decision .

Tux C-_

Taxes and penaltiesN,,.b,, in Deter,o.fenses di~l re rained

11 .255 $37,61 3

14.587 42 .125

13.814 40.396 $17,384

12 .028 39.34 2

In 1986 the number of docketed taxshelter'cases increased to over 50percent of the Tax Court's inventoryin response to efforts by =iminationto move older cases forward for reso .lution. However, the shelter litigationp roi. ect approach adopted by ChiefCounsel has maximized the mostefficient use of attorney and clericalresources, Approximately two-thirds ofthe docketed tax shelter cases areworked as part of a litigation project .The number of litigation projects hasmore than doubled in the past year .Each project is managed by a singleattorney or tearn of attorneys, tvho~together with it key appeals officer,establish a uniform settlement posi .tion . The project attorney is also re.sPonsible for developing the litigationposition for all investors within theparticular project. This approach en .hances consistent treatment for inves.tors and more efficient litigation andresolution of cases.

Proseention coses reeciacdft,- -intinal in~tigutnoi

MATTERS

RECEIPT AND Total up . . dDISPOSAL OF Total clo,sedCRIMINAL TAX GO-0-d-li.ed

Department of Justice declined

U.S. attorney declined

Prosecutions completed

Opird .n.

Pending Oct . 1 . 19S 5

Total requested

7but] tendered

['ending SePt . 30. 1986

3 .52 4

3 .24 1

49

17 1

295

2,72 6

19

58

5 5

2'

36

A .tion

APPELLATE COURT Decided m f., .r

CASE RECORD '

LITIGATION INITIATIVES

Efforts have continued to enhancepreviously implemented litigationprograms in the general litigation andcriminal tax functions . In 37 of thedistrict counsel offices, attorneys havebeen appointed special assistant US .attorneys . In addition, eight districtcounsel attorneys, designated by theAttorney General as special assistantU.S . attorneys in connection with theCriminal Trial Attorney Program, suc-cessfully prosecuted 37 criminal taxcases resulting in pleas or convictionsin the United States District Courts.

. oftheo,vernatent

Meid,,d in frivorof the taxpayer

for the government

C."MqfAppcut~

1985 1986

Number 328

Percent 84 .8

Number 45

peteem 11 .6

Deeid .d partiAly forui.pstyer muf pm-thilly Number 1 4

Totril pinm-

- R.fund-im imd - - .a --

pereern 3 .6

387

428

SupremeCourt

1985 1986

2 3

875 100.0 7!54 0

4 7

9 .6

1 4

2 .9

489

- '25.0

2 4

GENERAL LEGAL SERVICES

The general legal services divisionprovides legal advice on the federaltax refund offset program, which pro-vides for collecting debts owed thefederal government, such as federallyinsured student loans and child sup-port obligations assigned to ! ;rates forcollection . The division also helpsdefend lawsuits challenging collec .tions under this program . Generallegal services successfully defendedIRS and its employees againstactionsfiled by tax protestors and workedwith the Department of Justice t o

an ~ (31-hig,

convince the courts to impose penalties, fines or sanctions against protestors for filing frivolous lawsuits. Thedivision continued to advise on stand-ards of conduct and ethics questionsinvolving both IRS employees and taxpractitioners. in addition, the divisionprovided all legal advice and litigationsupport in the area of governmentcontracts and acquisitions .

09 Re-itus Reeekedstatisti-mmtnumberi; . i .e.actualnumberofea-receivedlAmormima irumfers and adjwrotents topn -3ma- reeeipts .

~ Pedi.9

I;;,4 3 7

STATISTICAL TABLE S

Tible I.-Internal revenue collections1)), sources and by internal revenueregions and districts, states and otherareas 38

Table 2-Internal revenue collectionsby sources 4 3

Table 3-Internal revenue collectionsby principal sources 4 4

Tible 4.-Amount of internal revenuerefunds including interest 4 6

7hble 5-Number of internal revenuerefunds issued 4 7

7bble 6-Number of returns tiled 48

Tible 7-Returns filed, examinationcoverage and results (1986) 50

Table 8.-Retums filed, examinationcoverage and results (11985) 5 2

Rible 9-Additional tax and penaltiesrecommended after examination byclass of tax and by internal revenueregions and districts and otherareas 54

Tible 10-Number of returnsexamined by class of = and byinternal revenue regions and districtsand o ther areas 5 5

Vible IL-Returns examined byexamination divisions 5 6

7bble 12. -Examinations resultingin refunds (Excluding claims for-refund) 5 6

Tible 13-Results of collectionactivity 5 6

7bble 14.-Civil penalties assessedand abated 5 7

7hble 15-Appeals division workloadnot before the Tax Court(Nondocketed) 5 8

7bble 16-Appeals division workloadpetitioned to the Tax Court(Docketed) 5 8

Vible 17-Requests for EP/EO taxrulings and technical advice(Closings) 59

Thble IS.-Determination lettersissued on ERISA employee benefitplant 59

7hble 19-Numbers of exemptorganizations returns examined bytype 59

Tible 20-Number of active entitieson exempt organizations maste rfile 60

74ble 21 .-Disposal of exemptorganizations applications 60

74ble 22-Internal revenuecollections, costs, employees and US .population 6 1

7bble 23-Costs incurred h~, theInternal Revenue Service byactivity 6 1

7bble 24-Costs incurred by theInternal Revenue Service by office 62

Thble 25-Personnel summary 64

7bble 26.-Chief Counsel casesreceived 64

7bble 27-Chief Counsel receipt anddisposal of cases 65

cwnmot-r VO

Table 1-Internal revenue collections by sources and by internal revenue regions an ddistricts, states and other areas(in thousands of dollars)jr,_,narnano-71-1d dianddit, aurtinaano' ban ... .'ShIg" ifitiftIM inditconatJ thto, 1. ft.)other war.. ithtnan an Wit.- - 1

WHO Sloont, total . .... ... .... .. .... ... ... ... ....WAtrantic Ratibon . ... ... .... ... .Ai

(S. (F)A~g- No.)B-n

BB=1.. .. ......... .. S. W

H.... .. .......

P-W,on-__ ....... .... (RI,odo Wiincil ...... . ... .I&Athantic RalliOn .. ... ... .... .. ... . 6'6"*'* ::::~'

... . ...... .. lm.'Ylin,P_0 Fo .... . ........

Fk.91.n .. .... ... .. ... ... ... ... ... .... .. .... ... .

Can" ""I. .. .. ..Cjw~'d . (it .1

olitoll M."prI) ...... ........lw-~ols . . .. .. . ....... Ondrom) ... ... .....LWWOe .M

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

q

F.,go D.k- )H.I-

OMhaSt. Louni . . .S . P. .i

. (b) ~)S

..". to. ... .. .... ... ... ... .... ... ... ...

Waa,em Reg on . .. .... ... ... ... .... ... ... ... ... ... ... .... ...A.-B . . .. ovno)HO'OII~~ (H"") .

Pon II =O11o!,I".rS., ontoSo R-;~

o) b.San JMsonFlo

Fooe,al Tw DebovisnoGasol M

W thhdd -asI_=F! .

Cloannita-. I.,ano ol-A,, Fm, inxi N81Y ......... ... .

Eanw- Cr=s'-"" ........... .'Vd-'a "o" ." a,

I.Wwoal I.... taid ""Inan"....

I—W IICOMO Mx 11.1boant UnamPirryinart, __ =_, Xt~aifthheid-kai Total IthNW :111 ninnnan, I---collan,tiorna ECA I FICA

(1) (2) (3)

:14113.: . . 1107 56:' 1

4,1969 56,978,392 368 .9% 6 .MO .

2.N"2 :'117 W 672 241N"'54'l14,862A96 1,015 .90628 13560,415

768 .7 9081,54811' :~14'5537 107 .1~ 939651

.953 2.405852 14,98961417737 ~342,~ ,2,2,4, :G690 44,901 .3667,~4 145

22~235:252 Z)4,839 2' 4U~72s

4. ~':24199 476878

112263 900.669I'S " '~3 :7 3.115

. 6125 9W 667 768 4,91 749w

1: OBS.963 N17'30 809

NI 22 4 117:7127 3.7:1'72:7.04 519.,.23 ~ 3 65 29 :

7. 1,, : 111:5523 B52.41),i 2 .8776,741 20193812 11 .112 07. 11 ,51 7 1 .3- 79 12,90211

' .3 5,, 43~1., 2,-,21785.114,7116

15225,370 2,1158.878 13,9920307 :27 ~6 5793!31 1:368 374

1 '. '

67.320 41BWON17,017 .223 2,0839695 1 Nfl :870

3 1264,96,

23

2,

A =6 E13 1 sl" :-9714 3~8199 0

13 Is 1

2:"

' :~23~2~'.4 353

' '102'7 7:33 71

in, 739.2.131 ."'14.UO 316 2:011 3 2:025 1521 '4' 1 88~11 W21

31 .713~426s"Fl . 1205 ZI-II-I15859,766 1 .230.OB20 13,973.2421.

~411 16 1 7:311 K2825,1052 :.0

J'O

12.912,202 88,721, 6511115,3iS.014 .0 :W4s,1 . 15 332896302 qjg 41 ~542 5112

5 1.31

:1 '3'

'

.2 052,9741,182 .949 6 ;igll35" 10478 .595l2NI .IW 1,883~031 3 .1 4.~V. . 1 9

3"2X14095,550 1,563,957 12.079212

59, .,31 5 6507 a" W.833 79,4298.9181's`,2ss,2,a ..2

E18,4282 133970' :36t14s2

'615 10 7304~072m 675 42,2W26 229,941 2,633.3 21 771 .314

099 120 :89 1432, :s.' ~ '7 l ', 1,428'0 6'171 049601

1,179 4 A10 Na'N" 82,Ns 7 .746746

3 625 9~~ 821)

.11 33 .113:334'1 362:3M 264,, W 5~4~07 .665

47.

.3. 103.7"

'2'8'171,576,30 567 302,2,025,229 211,661 759 .154

174 8782:337 322'1~1

63

Is III ' ' '

. OD34 (324 7 1221 2

,2,773 .903 241 45.23IIg,2p 171 26,319~ 83

"7 686, 613265 8.007,60521 :4 39

6~" :'S"':7' 7'. I ,

1120 1 147 si1 . 3'11 .1 613.131~111 749 :930252 2,OD6 4991 N ,

9 98 B64,442 10,767,713

1,491 498 337,962 3B2 593938:9B7 14629 924.358

7 3135.935608 5

205092

(5) - (6) (7)

11 7,83a,91 3 6.3'3'g13.= 3,03 02., :"snwin12,

7 2AW SJ61~378 1059 1398434 1 ~480 .672 US!

211.113479,5573:1:36T Vs 68 ,I N

412 IN 7,710.231 3042.

205 .497 715,9661 1372,49 Z 12 1 4

7 37. 74.6251 563 :37.

5,73442569,200 1,898,272

42399419 1,30116,393,897

9118 .125.201 320,7322 .79 :6174,219852 2,4 165 " 2

2 7 712.096 (m'1 507.156 2,617592:

3 :311V 30N 526227 243 .513,928 1 ~5 7 35"

30:97121572,610 92111.'41210,124, 64 227,3312. 724654964

1 52,677 1,910 . 6 9WSIB. 434,1210" .3,401 617566 M ~3'~'!)w251156,250 2, '921 .

1 ''2 :2' 921936188 3893,58 82 5569 9,325473 8992 1

1M7 4.472;3 270,212B 026,~6 6: 4 :MN7

673956 I,N5,7491 .71:70 8 614s -1 1,279, 4 71 610IM 2W 62,W3

S1,1114

1 1 31 11,5.5,145633,1 17 10.218,950 :2'

5 3.3,1378 16,381,31 712~ 6511953~ 15 79 5911 8 28 .240,W

~59670.636 12004,2148151 1 AIM32~%' 6:27 1:33'63 5'0~9 26~

4.585,599 12,057,715 1,124,351462M:~45I

677~M :102 .1107167 27,4.5.9591,085,5W 3,411 .5

306 .01 731. 5E 0mi300 ~986

i UN 5873261,06562745 .'861 2:9N .102 121

.2M21~2~6"~ ',422' 1 '.7 6 026. ' b1lI 1

'11'.32116,56218"1 58Zi,222~77,~2

5:,'.~9622 .. 2715 7 .684258 Ul 7649B.11 1

4,706,310 16 M3 242 402381 .6.058 2, 1

2 :61 71 '~: I's 5'2 :jM

2,314,3322 77 3621 :4 5'158

1,431:60354

12~4471' 428417 2 .057,287 124203 :2W1,229,563 3930 6

11 2 526,97921 .157,95 1,.213 4~~ Q227B 4113 .... .

1 :4WI~2 43421 :212111 :92 9

6764,01301 1 .~ 7'72s:1'1 1 (40696~~

212 N,273.N20 14:.1 B 51"5 '4~811B

6.0712:11 71 ~ 52 1

. 4:7522'3'0 274 322433,978 13 :3 '2%2:~W3':26

.2 .7":w 9

035 M2 8,522.113 125,3922 .

-924 358-

..:381,111 -

41 :74'~

26' :'12!".7 3

79,12613899120,957

327 .392W 624

~22,0,15326 3W43827385:582

2441 12 1~16173

094146 OM171 .811142,

99SIS'm

55 1:31"7 0 550 .192

124 .92928 6WIN :5118n 324

' . 5' :17

160,153

217,7W657239 1~

BO.79642,40528.5,16

90,5"7 ~

399,41339.4907,4359,3m

8925329469134,030177 .96569397

6011.68551,32427~~01 1

39181 .5241 ~13I03.WM,15049,95324 5744

2,7766,736

10 4N17697569 8

137 .37326,211

213 .84830 ~47,07987

62195,270M,876

103,181 126 .907 152,0B-

35,9i3 35 91356,08 591(156085

03295) (103,386)

Total. 11 "a- not anina- abonn'

248 .BBO6B9 604,350 7~:l 1 :116 77:2 3" :4.0Z :.I Cold.- .. ........... .... 'I ~13 s 4. 1-" ~5'554 3'1 :28~1131

111'nols ._ 46 IN .0117 617 1. js~~...7Nar~ York 10.9B7 .735 74,073,778 1 :31570 61 .987 .45B

-i-'36 '2,38:,7, 61 3614,42, 30

.813 962 3 , 64,6`8 378,272

P. A XN0.076 3 B. ';N:7,73~' 22'5 .V2'22.' 3. 41~1 :1526 3 107, E 57:U438.7

929 9 .573,918 713 12602..... ..... .... 53,598248 4,7840 03 44090.389

.........

. RT

Table I .-Continued(in thousands of dollars)

'-1,- 1.*'. -1 dratillut, MarnaI Znapmainiflot! by

total.for offint, auto* ah,nal At boboon .=..) E-1.

to,Gift total of

""1", 1 :'A. 15,25 iorr! 33)

tv': 39

A1111,01 Torms I-

Dititill"Total A P

(10) (1

Unit"'6m 1.1.1 . .... ... ... .... ... ... ... ... ... .

N,!~Afl.nfl- . .. .. ... ... .... .. .. . ... ... ... .... .. .

.. . ........ . . ....Mini baltle Rollin .. . .. .... ... .. ... ... ... ... ... ..

or .Puenorco"FO_

.. ... .... .. .... ... ... ... ... ...R

~A=)1

=bor~ : : : :: :: (;=' 'J. (m'.

N-Ale ..... ... . .. ... . ......Ni- Uieans,.

Cionfiral Reglo, ... .. .... ... .(d )

C;m',,dD""

..... ........... ... (Soo (d) -'ZIO . . . . . . . . ..... . (M .npr)

='.!. . .:.: ::: ' : 4. ~Mid b., gP~,kort,Von ... ... ... ... .... ... ... ... .. I... .. .... ... ..

A=-n (Swh DakotaC= (See (b) bol-I

2%0 13o~~ta ;

H~emke~Ww"IS nara (N-V

Louissl p.. ..... ............ . . ... .. ..S S,,,ngfielcl .. . ... ... . (b) Mim) ... ........ .. ..

RA

,:!!on . ... ... ... .. .... ... .. ....

A .In . ............ ........... .....&,"IM ym,,g)_D o(.111 - :: ::: (,Irr_~ ::: r~~o tio .)

Hougon .... ...... ........... ... (so,I (It bon0ahonraQty

phoe.-_ ......... .......... ......siin ak. Ct~fttbi . . . . . . . .

,leloorm Raglon... ... ... .... r<on

A.1,o, JA"Wol,a) .. ..... . ...clahl)Horold,

I=Q.n

6ogionS.-reln'.

Unifirtribut-Jub=a] Ta~ [~;Nas .. ... ..... . . ...... ... . ..

W, .Co I, -,bW .1 I,d . ... .FICA uNhl,-no

. lol -ow" -_r' I . :'Ise funt

"" .17'1541 :079

35380226161,

24'21 N2

77767

7650218,66629 im

~6518`b`13 SIS33.61 9

723

'2 N201 :1177IN 34~7

77:0

10 .7M96491:76"57

10"s"66,79137.488

129.41632

41 .:Os9'6A 2178.71476,189

529,122IN M5

'12 :'"8871 9

' .666wN'l

729,4156,173

265.518s!

15~06365.9.34803'4'

1 js753,39253 .884

U7,36212 ~3653 .77718 .931

24~1 .31171,714

113.317B8,887663928595So 06 8

1 .2N .4164:~021

St2EI,316

219 '121 1. :2

3NO175799989 .868

12,5 :1.84.230

-

380 .53is 3316n.086 $ ..?Aas" .460 2,003,426 309 76898842,658 1 1 54

5 61,065 98047845 332,'5SI W,3731

: 371 ;59 01 ~0,61435,1 75388 32773 22.902 3 380105 2 188,671 14~3111,'758 :310 961 757 05~ 36 'IN 39476 22.Nl 98030

60.381 4 .737, 31 1 .013,7053,252 25.278 419 .961

915 '2 37,029 205 .13049 206,022 2G5 176

'037.2:'41

15 = 1 44' 9' s 2 500)5:309 663819 1

.

7.3a2 262,633 51221223~7256 1,245,257 89.7333 5551:611 S 6 952 .678

~,. 46.141 61" .9"

10002 256 4N 366993s :.141 210~W5 4.501Is 1. 6,

3 .6536 .157 3,29 1 :17 108 .957

127867 99

IN 5B621 445 131 22 B4UB 215 32()2 '1 41 .1 523,171 131~5(Kl1

1 4

1

4,4:4 2W 380 1 47 .4970 .154 551,523 .523,140

3%592 205,61 36:0 3 19173 :12 54 2U83387 520 351 .9663= 5611 .272 222,815

749 1,43.2 .286 68600795" 2..~2-

37 16 3,914j'7" .7516 41 385 3'479

1 %1 s~7 1,117,889 243,356756 13,375

315 134 23133 ~92518 53:M7 5

4'3 0', :652 ~1

.1 :s44 1 13~77'94'7

11 NBAN M6 .324:41 1 .'7 391.511 13,7W

171 .521 23~58446,090525 53S. 2

858 N .21311 .839 570347 65,7282177 54 .6~

5314275 1 .5.147 :%; 1~1~?13132301

2

.2 :031, 9 6793 :089 037,147 3.'72,4641 ;KD90 5 .777

96 52~012 m1 15 290,750 2,Wl7 17 3 212, n 11111

22.500 464400 45 7003

2.6t1t 6978 ,m:4.11 86 : 40'81 683 62 46,204 B66

24,387 14 4

1'

121 :1.4.2 14343~2719 V7 48 B

1 7 I1 :474IN

948 45.826742 24 2DO 4~:71.1s25 .W2 264: Is

O' l

308 :tli7

Total . for Urt. not atioarn Ab-

~e~ Pit- t,ania ....... ....T,.a,'

7 1

675 293398843002 ss 3.'101:476,11 :91 214, ~g1. 0 N

217.665 9 .972 1,592~8942 '141245,817

1 '91493405 35 69s57:355 4

(12) o3)

3,731,360208 7 11~1

2796B

69,75 88,5582;2.

3791 :121"91 .

1,2751127

720.Ng248,047205,129205,175

240 144")67,073

592185969

53296, 45

25:11818

~2 :3 5218905

108,165180218957745 W 5

1 .421 729148.762

4 .43525.622

1210,059685432

02: 1Us .460

233,175l3.W2

45713 1710.891795

936737

22:83"17

4~3'N39,279

3771,41122313231

:2955,627

6782243

42 9630.860

W,7~447

so

41,1314031616376

469,1052.1 :112 113

Wi- Baer Tobbin-

.15,196 IISDO.92 142.114 3.52769'65.3 1

125030 13.585 1 .76 1674 3 j20351 5,6 55

1 , 1 21435 6 .5W 1,7W

17,764 --" .118, 32 873,7BBW.452 11 1~14U 14 .~111 23

1 123- - -

463 41892 8522947 ~M4 2 .13158164 4

2 .059"506

2705 856 .440- -72.9114 308,165 31197,39331,249 79.6189 366,570

36 51,334 11 44:'708.21

513 1057528 2 073

38.052 79 .667 70,91 6321w

341 .9a3

1,739 753

8

7106 93,574 529.7"607 N244 1462 220 2.629 2713 :977 22,368501 12.253 26 .NI528 47 502 .256

33 358111,1121 275,336 1,1851-

9

4,24 5 .W33 3 59

42 4 591

1,669 15514921

2,IN 110.543 -94503 1.992 1 0. 1,053 -

70'1 311'94 693s2

4.555 21 .888 ST3

711 491 253 -1317 :549

~,7519641'5

57192,907 240,7441 1,030

4131 8 31 .21

I N2

1,11,1 21 0 111 8375S 5:3m V~

28 20,326 131:.'8'3 1: 71 :1 777132.04 6

5, 7171 2

1~1 1101 1.1 183,2 :'71 4218

195 4()5 131 30 43,3139a 2827

259 8892B '986 01"221'9 :712 57U 3 4 701 :s

IN 1231 :.7 N'20657 1 .75758,873 117

151 2"m7~ O174 29 598

-

2

122

Jam z=ffk- pj,rm-

Table I .-Continued(in thousands of dollars)

in_, .g- . end d

W'=h`-; ha-I-lot .1.1 ehone. -0. of let,W)

T-1

M ... 1W .,ent, --itte

It" 5-881 "I'lAtUndi- Region . ... ... ... .... .

A.g .-D M-hutM)

B :: ::: ::: :8 ..... .. ........... .. .....Ma,hwan .. ... ... ...... S . M belowP'n,pno,,W, (New H=Mh,re

m P-do . . (Rl- W.nd)I&AIIS, c on .,: ... ... ... ... .... ... ... ... .... .. .... .SW_od' . _(M-Ia- da & G .)ldrd,n 0

N-l.Phthcteldi~

PE.N'So"t ~Gdllgl.))_ .......... .Alto do

na~1=1hh CCa~~6:m

, ::R mL.1wl0,. .......... ........

C--'A ... .... ...!7 :cl I.ld_ ....... . ........ .(So co t*~

. .........on! :::D. rd'Ind,doL-0. - . ::: .

. .. ........ ... (K .Nddky).. ...... ....tWed Wq,,

MIZZ A'M41A-doen

sr%"~~

(( WN=)) :0- W-)5SI LPZ ............ .......... ... (M-n-

(see (b). . on . .... .. .... ... .... .. .... ..See

cDalls . ........ . (SC~6 (Q W~)00-

: : ~s_ (DH%110 _o C~'~OW.h-.)

wph"M C

L .)Sel Lek

(K-)totem Region .. ... ... ... ... ... ..Ancl-W.. ... ... (ca G"i

L.,, . .. ......... ....L. A

Sal I . .... .... od-Seewe

uoohdrlh-d~F..,W To. Dedd~ . . ....oeedIl". Wb_,ng dl :dl

Mhl,dd

I_Ohldero =F~

C,=__lt 1 . . ... W.4- Fo,ce old Nl~

Prewcon'., eledilon _-19l

9.927,742sm .659

.3613"6

9992 53

87 "16,794106`9

$116.36098 IN

39 1

318.So21 1131070N .295

1,132.503184 'as9938976,901

1 a3,19266.79707

IN 156

200 :8704 080,160

1,280,131153 .464

737 7M1 86:7369815963,lDt40,220

450,43017,N9

54 .97176,05214 1M17 17907:29740 M36W496,48575Wl

2.9U.49 155SW

223 :37328606

833V18,124

.1 ;479.m00671W00

11 .0'3I 66i 1 .2

BI1, 4n9 .

56~5319

U'87SoUl"'86

319,409W92 12

'~451'.86

el- -1 .1-n,

1,509 :174S24%m

2372791 .188828

1 ~521:105921

G-11 .

6 .905 .9m432,675

17:1

88~7141DO

79 .X6112 .12

7fl69,3'43 537

10,429652 ,

S2,18665763-

73 4 5114

1'1'2 :'8' 079,86213'6~ol

lg,2M3658

77 41:422

1'21,5066 No

1755, 762312

147~':998'2

1,000 .02238418

593,52717889689,92787 .3361191 8

.3sg,30116,732

527 .13069,98614,14221 .172

IN, "29~704

4253~38

'71 .7'0'12,U5.806

22W2 .66574321 :1621~~

S 3851,60499

4 .1AB32,48785,30 5

",89 .186590,7"

2,(56194774

3o:42.19.726

M.3~8~4136

1131147 0wV6146267

Tile.(, .holly "to=W.

W,dbloe,

(18)

2~1'1:72 83.

(10)

2 911,13612

11 .415

8,9027.5tS9

-26.67213664

330

no10,026

2,169520

IB2

U,111 71 )620

8924 .262

42432450

8'&4o

121,771

1 25,MII .W

2018

(12)ST~

63053

70

"52"14

1S3

2195

3120

275(1 )

36,3M"

22,552I

10 .5594123

2 5BB51 3

5981 ..7,929

M"631 .809102,315

1 .90508

th.k'.og

(19,

"'k.".

5;619

17 OT7477

70576

-

7422.26071

'477~ 7'

05,062

19~3T3

251220

45,22 947

5,313"14 960

81 .1636.964

7 36576:121,

70'.6591 25'l .B51492-

56475

10,03337663

34,m518273,

2056 IN

e m44~7

i1

SO1 97217377

-8,N3

11.1019,609

-9 .0272,D99

-6~478

2,3Z5

35.73450744

125059192,629207

1'4 .5D65

." ,N5

.058'3343620

13. m

11005096

"3984 993"0

R-.I-.l.-I .-11

(20)

1740.8411 :682

36 5

12,4722

I1,223

56081323 .2

'24'~219

38,337905

8-

9088B

4,393

3287920'~l17 .196

2.21047.71,27

2293

7l :520338

1,17320

0,032

. 75,1321239

1165

v'39S1191

9 :35552

10

2,315741

7.0=8137

14,899582

651t70311436.55

121,244612 138o

20,3131

306

3156726 29

2.47

1,134So l250

2306

I

"'~y P~1- ~ ~W

Table I.-Continued 41(in thousands of dollars )

0.1-1 n,gi ... ntl[ dishict.,

It Ifin he, somee hd.l In bod- .1 tebl. .)

United! Show Weildonh~ Umotlc Aegio. ... ..

. ......... . _ ::::~ i;Z~(.C~I-) :7"

B_.l . . ........... . ...... .. ... ..... ........a w

is....... .. .... .

(.) go'..Manh,ft-

se.-I-)

P .d-.uIh ..... ..... . . . H

M~Atltnnl. RgW. . .... .. .... ... ... ... .... .. .... ..Ba-0- 111"'Ind & c C)

1.-o'l,e,

N-kPh,ladelph-':"-rgl .......... .... (S.. 1 .)RO-nd . ..... .S.~,. R1- on .... .. ........ _(D- .,o)_

on .. ... ... ... ..

B ..... .. .. ..... . . .Ed=Greel-r~ cc

Cennel R"im ... ... ... ... .. .. .... .. .... ... .... ..

Mide,"t Reglo. .. ... ... ... .A--n . ... ... ... ..

iNodh D-1. )1.1.9d.

m.nd-)

M .1-0-ha"'SI L-& P.~~ . iM _=tj

. It . ... ... .:,.(d).1-)

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

We Rgld. ... ... ... ... .. .... ... ..... .. 0:00 ... ... ... ... .

L g,m Ng.d jSe~ (aj delovj ::::a

s'" W~U s'awle ..' _(W.-glon)

distrib,liDr,,I e,Igo

ICAG=l,,',

P':nd! .1 ;~A~v F-d nd N.. ..... . ........dent e-.ncNr,,agltnW

Tooth, for stete. not M... *W,,

dt~ OW ...... .......

T-1

(21 )

3,7113,295203.394

i6006377 .776

17:03 ; 19So 2

I'M2521,68617:1U5 6

97413 240 ON883

81 52 :1

12'4 3155 W1172 M318574

757,SN136 66B71,249

'134:i12

N42,93816 724

a38:570106,650

645,355U. 24

33826131:4 714,

IU142, 734 72

"9.41112,'51726,97

17 167,788915,90517.67 3

1 3 ODD310~~108,7993~6~2 1

013707004121 :7 70989

116,813,71959,83469 :47N 243367514

403681 .51,

..7,. 11 3

74

'.739

2~316 151 5320,032

6.279

785' :329

33"57 .853 .472951 .01 7

293,400211 :~11, 113

268 .8259480,21736S ll~

Astelleft' end GWIII We@ tele s

Dleeel Wei

(22)

2 .613,980145,02 6

11,067122172163822.122

~~98329'82

.2817,550U a9

211M

.

3. .9.77.530?

307`,9A5960V43014657.08514.288

524,9478943345,91725 lifi633 432 95~

134~~2721 ~

2472,87036259

389,04 04,1.167

ia2,04847,521739383321 78,150

370, 1412479

",652N 155112 :1 4

51~677

22 .~ 709'77,22,12B 211626 03 7

576,02118,15885,90516 IM147

.04347,885

82A8631 .770~0 .93751,366

352,1573,

405

14 usI:19 13l

18,2 942,38150078

V:2.'445511633,09 3

231 .058121 2

110:77.226.2125103,960287,907

aviationt-I

(23 )

" .9608 .135

Im

...421032

967419,6

20M2 5122

211 .3"7

7

4U

4;4"6,23 5

~1~13

9271349

14,"12,307

6799921

. 70D608

4,4U62

1 .72793 6

11,7204,89925052,2151 .502

288312

a,390170

1661244

1802w90481 0

2,3621.0(56379

14,063434

3.57 1275

3,70290 ,

1 ~0727216

ND335952

. . .. ..33S4W

"233

635' :22 1'18

1351 .1

1 :6161,89 1

6,976

41~23'10o4

1 :27NO9.ODD

-hidebodlee ,

(2.)

1 .091,36652,224

4,7735308

1 0,1904 .16579321 .6765

2~'7,08 8,162.37 4

14 1171633 0

;5,3o 698212

14,_'2 '2136

218,51.44,92924.6&)

7. 7394 ~1559,375

29 9w13 :13132~053sISD

203,46314,27320.93495,42867,332

1 .4594 .037

251,41 93,122

D3,21422 .4934 .5014 .7M

W~9967079

29,21316.670

8,59 7115,920

3,17520.513

53037,9741 1 .0"ll12 7929,5314 .0337,1319,194

103.697131

3,48511 .47

13921 .179

Sw202703311 :14

2376747

16,033

55,366101 .811

131:155 207

74~98671,278

_itix mvz~~mv-.

Table I .-Continued

(in thousands of dollars)

i-addleadool,aparkee

="d`le,=,` 2 d bS"":: beead Watt"donan 0 bottom 01 table .)to, done, ""

mladawx. .. ... I. on,

UPW tax On tdandP.`a%- Wendell Unciled"ledT@Wp,,%r Aldine , . '... .. 1.'pra, d t-1 Wagering Militantly

In" am tiable 1-tonam I. pa, 1.

transportation -In at.. I-

(31) (32)26) (29) (30)(25)

UnNW Staknot. total - 1 266,252Atlantic R"I. .. ... ... .... .... ... ... ..Nor~

'I 3'l 4Au,l 71,628Bda.9

IMW259

I V3

id-Al-ftR 914,564all 724 :W

2ol

'1 51,492

, ;"-eat '20

NOther . . ... ........... ...... ~

2 :'21 5M5 .056

. ...... ......... 131S ~2112,51 8

1,321 ,

A,... ... ... lig'* . . . ... .... .. .... 378.095,960

.192 11 25

ppl) ._~............ . . . ...... . 24 :484

. ..... .. .. .. (Flaralea ...... ... .. ~86,764

Unto R~ck . ........... 21~4.... ....... 83739

671,61217 ~7 8

... .........I., n 166239'Mnoun )DMmt

- -:.::: : ~ 82 .421Ind-o"; n, 44,318ky)Kera.L.u-lA, b7n,a)Pa"'"S

W V 3,5734~1

Idenerat R4. ... .... .. .... ... .... ... ... ... ... ..... 3"

Aberdeen

2.(tp)lga.. 4 7.7'.

.4

,~b 4,0214,551

413

.... ........ .. .....P;=

,~r)ASat _ak. di~ ~::::: . :~~]: 14.466beal . ........... ........... . 47,282itall ......... .. . (".w .ba . 2,1 018'95511a.-

24.3

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

2

A.1ob.,e 4 :MB...... ..... 21,559

362,703672,621

SaSan 9164793389

send. . ........... ... ma~Vdo)Wt raIT:%aboall, . . . . . .ant! %Alaaft

- FICA ~,W,b,sGional ., lubboal,ng .11 and;Wdhhdld ... .1 led.r.1 - y. ...........Co,enn.gl__ l',% :~dab , - .,.,, .n uniand Aa Fn. N.47. .

P-dent.1 eacton On dogn fund I ..... ........

(26) (27)

2,339.101 .4,.1 .

1,5250

511M2621247035 .91 3

8587 7310

11,146, 5

7 110422:4195

2:41ad

28 .1,57

' :1657 9

212 U32M'147576,47 1

411912

I ~500'3'53210

513 4,'Sg 1567

9.159M98 6

17644 4

1,674

211,7711 "

~l I'll7:.'131

1 4'494

20 .073, :20045

12 4915,

00'16,1 3113,208

~063W

41827762

37,727, 5'2.M2514

.562l

4,8034l5ut

' '152 :'4 0:5020i12

4,091)2 BP5,

~55 137:aw

2,M7,04l4l .ll~V,

751,38 7

3,7622'3,0191 7

P487',40B207

631

7

11024514 MI15,61,

1 42,11

3 131 :4.3325

'74736 .242271 ~992

34 '79118391

295227

413624

1,6911,315"3,7N7 .26466 4

584651,US

96435,1436

418

A'352

2"22111IV:M9

1W1 118~2

1, 81w31

146111"39

89:W935 22011 .4V3400

1.71.210 .681

21912,20170.342

1 362Q

.,5 89615

54,

.411', 88

g,tile 665 .6755 42,3502

-2 '93 "'30 691Ir ~ 50

5865 T8- 1~1 83

.8666I~ 1~a 3 29

1 :7774~3

1 7502222111,033726

-

ItT 111 1~.

18 M5416 1 1 :00

158 124018

025 125 .1, 1,1113220

14 :133'59' 7 .26349 1962357 7:25t

234 31141

1. W77

55 14~579

'54.' ',9076'.3 1. 3

2019,4931Ila17.735M b

3 747 2'"2.1

499 98J31 146 3 .14591

4'!'1 78

4 2 .7.3 N6

308 13.715

T 6'12~l 15,561w 14 W 7

V13

F614186 12 .2159

171 222a(158) 6~687552 9547

225M"232 51.

7 4'4278 :7122

3,652 68,2"4

'27321, I210

232

11 9

yebeelor apdaa and all- abo~a

aa U,tr. .......

ot Pabbsyl,"'a

1,891 .9665V 79W11N6375380 :168

'2'0594295

157,17717,2,694V14829:41..2,76K

MAW431 Bill235,

2636:77 4

A m

452INM)VU

2C6T :

8743,95 1

305

'a'91 2"714712,9537,302

465 .5 a77

10,6213'

7 4 ., , :I217,191 6,860,96 11 :.17 (lj~l 268,893 635. 7 .2125

219 1,~

21' ll 3 4~~36 (3~L4,971 ;12 .165 703

-1~

IV

2 439-3.475 7

56,780 6,1.MI 2' 13:.3 (14~1ild J.45B 164 122

ap25,"2'0 326,981 97,133 (364 .31P3,98 7 .51li 2:.68

48~ 2:'.8291,1

473 V& )

88 '80

5121 23,3387:007 277.958

5 = 70 :2U8'

3:392 112 004 148.97.2 .152 3u,

40394 2,097JuIs

3,492ad201 1214

M31 . 11 .688~5 "717.1

113.653 3""a"103

21 :.779 21%7535,576 12,44 7

1,857316". 15,8219

177 11223,2" 26,322

32 1512,BS2

96247 15685 41077 5

1 21~ 344

V:,I,

2~11 Z4,31)) 2 .91,9

3~22 4~35nij

46 411,456 B :4 g

19 26,152857 860545

17292 131 11

65r'93 1172 19~932 1369 ON

(45 %211.1175 (9 .733)

' )39 1' 2'14 (14-,-242,13,46 5395 1

~12 122)2 .41 2387 2,269

lV)41C7~6 12

]34426 122 14"M

:91 ,14 1 20)4 5 (~7,3:1( 'T'

95,96963205~257 (14592125NM

17.4 174840 ~O1.&t8l 14

.52,05B461 .447

40,320 067.11M7 l :%N1 'a

u 123923 (2441)68 (357)

(245)13 11 .5771 353

320() 3N)

3 g7l 161 ~02 214~ 3.2 .1,134 (4,042.

09922,496 5&614

762712201

"1-~27214 .~.

.7V2 "24~

.100 3752.

K16 2j05,W3-

~i,697,050)

7M554 4Wl5V 797 368 (11 ~743)431 4

~4

:1a

4 :"332 26. . ..

... Q~ .15 fi .093,1231631 (1106933 ~.406 253 (8.23 1

117 1 86 1tMu' 7 717 (1 .032 )

2,957 4

1

202 268151 :'54 205 31 714 ,

382 142 518, 168 1 .473 (4~ Nua471 12 462 16VI

4 ~4'N6353 U6

. "'1

~. 737 2 :3N 71~.1

:B56925 30:5W 1 :173 (23576

1

250, 6 99 SW816

770.943-

38,20627,2071 , 97928 1M2 913:231

5239313,16459,372

1272

d, 1

2:665

:.7M l

71

360)1,430 87' 22384 (1,1 11432 18,496 1373

04 .681 73 .730 (351,1 1~

2

. SL

" " 1 9~07177 ~181 .776)2135:2410,64M) 43,797 (1,9",038)

1

43

Table 2 .-Internal revenue collection by sources(in thousands of dollars )

Soon- of ne'anueUIV Ina

` ' . .. .. . .. .... .. .... ... ... ... ... .... ... ... ... ... ... .... .. ... .... ... ... ... .... ... ... ... .. .2 8,72" U69, 78802.;M2511 .512CO_d ==ai .. .... ... ... ... .... . .... ... .... .. .... ... ... ... .... ... ... .... ... ... ... ... ... .... ... ...R ..... ........ _. .. ......... . ..... _7 i ~ 62E= . ........... ... ....... 77'342 .976 80288 silit

"' ou .10Individual hHoom and emplalnend timins, late ..... . ........... ...... - _ ...

_rb"I111ld and I I I 1 11 1. .. ... .. .. . ... ... ... .... .. .... ... .... ... ... .... .. .... ... ... ... .... .621,674,12!. ........ .. .... ...... . . .. 111 .782,469

1 V,02.t550,243 .151117834,913M301321M)

3 .833 .64 o.. .. . .......Eapd. tao., ... ... .... ... ... .... .... .. .... :..!: : . .. I. .......... I .......... I. ......... .. ......... .. . . 5GM tabr~ . . ... ... .... ... .... .. .... .... .. .... ... ...: :: ::. .... .. .... .. . . ... ... ... ... ... .... ... ... .... ... ... ... ... ... .... 6 .3.3'

.1,..1,1.1:.31117

... .. .... ... ... ....'A""

0201: :.2. .. ... ... .... ... ... ... .... ... ... ... ... ... .... 37, 4"4 33

.631MO:138tooDial

CoelAt. t.. .. total. .. .... ... . ....... ... ..... ..... ... ... .... .. ... .... ... .. ... ... ... .... ... ... ... .... ... ... ... .. .. . 3 : 73,

-rb. idol d by C.. 3,520697 ~1:647 :34.15S' go '00it I ._!!~doab-~) ... .... ............ 501,85`1 F46-- -V- 702

83

Sa,-, baboll an. .. .... . . ...... .......... ......... . ... ....... .. ..... ... ........ .........Win. -. ., lot. . .... ... .... .. .... ...... . .........

... ... .... ..... .. ... .... ... ... .... ... ... ... .... ... ... ... ... ... .... .. .... .... 305 ,... .. .. ......... ... . 92.49= 'cu-,".- 6, b abrounad )D~ Z11 -, wine gain, -WInD WIM, S3 41):arto-Ily C.' ..too b... U 4 .l ......... .. ....... .... .1111111 212,943.1W, . . .......... ......... .. ..... 627Imported (it. .... ... .... .. .... ... ... ... 1 .571,4336Dobtasub, $ par barrel of 31 gbilon. ($7 1.l_o I_ -'an .-~l J S 11e,.,a) a" 321 502,"70--at-'l

500 parne. 0, 3"alout gr"eareadiud i . . .. .. .. .......... ......... .. ...... 9

-'be and -1 . S2.20 and S4 50 par, "d-b dondlad a7Wholoadle 0.0 n door, $123 pe, y ba . . .. . ...... .....

Tobacco Were, adatn .. ... ... .... .. .... ... ... ... ... .... ... ... ... ... ... .... ... ... ... .... .. .... ... ... ... .... ... ... ... ... .. . 352Cigarette. Wall

,2 .94N1 .22138

136,6271

41 7 13.4

41 778:826

;4"416

11 '7 S

324016

1 .5011 .92 171~4

1 .4712

23 961,7143

104

3891'310us,

'gar 4rm. tot I .. ... .... ... ... ... .... .. .... ... ... ... .... ... 56336. .... .. .... 24 .Mand t. ... Pe- -be h.1 be 1.497 21111

bbborow d,a',oper lu-I par 30

led-indantan g.. . .. . U- (domecad by C .t_a. 52a to8,485 7.215

1 .142Maddlanedio, I.badd,) .. .... .... ... . 1 .11 ..... ............ .. ...... ........ 68 0mandaconnow, *xClea WXM total .. .... ... .... .. .... ... ... ... ... ... .... ... ... ... ... .... .. .... ... ... .... ... ... ... ... .... ... .. 10.02O.S7. 9.927,742Goad-, 9 p-. or 0,Glaahn., fl, 5 owl, 9,062 3B7 8854,817Ga,obt 243 43

bya.M -2

Gr,:Il u 1~.-ldl3d-.l r'notionbe bT, , b240,529

48 :577T,b,floor . k . ... bar ol's -0 t1dool buldipe. . ... ...

p .ol and d .......... ........... .......... ... . .......... .. 2,319u: 58It 285670

5 23.433F;.,,',', 'parabl=at 25 10 760 63,255EIwtbC Outboard ot,ba and soneur ci.,- .,d.n I ........ ............ .. ....... .....'d,

a Iat. art .. . ....... ......... .. ........... ..

. 165Sha"-firdipabldloo, 11 DellOnl- derdent. ......... ..

-1.... .... ... I. ......... .48,906

Stable lung, band . . .. .... ... ... ..... 0 par 1.. . ....... .....

. 39.037

J_r,,oundd .,:gadmj*4$ilj. .... ... .... ... ... .... ... ... ... ... ... .... ... ... ... .... .. .... ... ... .... ... ... ..

2B,390 35.892

Under, aunW one percent . ... .... ... ... ... 548.3511 651 .158

, p~.. per tar, .. .......... 303,577y, . 31.52 39,919Su"wemineacodi 55c.-Pall .-

316 U9

bu=1~:, :.Per,111.. . . .......... .... ... .. ....... .... ......... 167 .371 1150,280-,on . ...... .. .... . ........ 41 .. ul .61 0. .. .... ... ... ..

at. .... ... ... ... .... .. .... ... ... ..N--..r .bl inn

.1pride . ... ... ... .... ... ... .... ... ... ... .... .. .... .. 3 .002.8011, 3.70,295

N. .-rdw.3don pa-ne, 3 Cona, M gallon ......... .

u ....... ... 10,3565Deana and somw m'dio, fudl~

.111.11h.n g-ba. 14 Conlzd~~ qajc~n r 73 :005, ,Ce Ul do gallon (in som-d,~ar~j; 67 :604

MWO, yebidea, Crad,, Dod, C., 12 2,430 i6s 2,613980ad . odal -en, ....... .. .....1-11- ......... ....... ... ......... . 1 .28. .... .. ... 0 9,7 1 091,356

M Telapho j_* * ... .... ... ... ... .. 5.A141 ne abdXly- -bange .. ..

. ... ... .... ... ... . . . .. . .. . . .. . . 11, 44 ,

na.apaddj... odau833 15. 31,146

ne be-n, ...... ... .... 23077ranspardam d der- by ba, 8 parocall. ~

: W7 ZmIt 153... .. .... ... ... ... .... .. .... ... .... .. .... ... ... . 2.589,at a 2,707,534

2 .41., pa'~, .bl ...... ..... . .. ........ ... 2,346248o%f 11.1rd b,,,.

=a , . 3 r mrw, ....... ... 1 0:943163509

BaW=ng tedues, total .... .... ... .. .. !!! !!! 5"

:IHM

.... ... ... ... ... ... .... .. .. 388 89057"b" 7,315 8,618

l~ ;=dl=rni wa ad * *UW no, on owl ,,C,afl . ....... ......... ... * 03- - 1 .~.~. ... ..::::.. :: ::::::::: :: ::~:: :: : a,413151 71 :586Una um on h19h.ay ,Ncle,l .

..... ..... ..... .... ....... .. ........... I ....... ...... 132Fired,,, derider abb ddCuded,nal ......... ... 4M,143 566Ex,*,m

a1 T organuaddins, totei ... ... ... ... ... ... .... .. . . ... ... - ...... . ........ ....... -.. .......... .......... .......

. 136 .3153Self. -a- Ind-, 2 ...... . .. ......... .. .. .. .. . . ... ... .... ... ... .... ... ... ... ... .... ... ... .. 142,2

or

:: 5 3-Mg, bbal-%i

I

ng~s666 . . ..... .......

. 83

2491.1 112 pardent on Wbolat.on mandw 27. .. ..... ...... ... ........ 21

217 ~209

Tunableexronda,boa I0P;,dna .no.bb.d.n

1

al, ayfoundation lanage. .... .. ... _.. .......... 331 89F

:litti 5~.97Fature to am On calon inlona.u.n return, SID de, day up to , at-inturn bi j~* 473lu ,au,_,

4ut,~ .,

tbrn 127 1~388Pone, perowl an foundation, '-Or o f............ .......... ........... 121 1

-.. ..... ..... ..

v

Table 2-Continued(in thousands of dollars)

S~.- of -.-.

EM?Wyw Pension PUMS, tOUl --i ... ... ... ... .... ...... ... . . . .. ... ... ... .... ... . 41 .2

'C"t 6i hdsG;ih6ut;cn 34B

"ON -No 6 on 3 '132.F,slh. 1 .=SV'-Z Wil 3INmount ,

'000 ........... ....... . ......

Feduh, 1. fil : 'n..!l Ic'.Sch x:d P 4 .3"'7 Or INS . $1 . -day~m i;s6g66 :: ::......... .....

F.I.m 10 U, -7" do 1W um . 12'"sure V"

12Fadum to Ninsh Wua,, .l nocl . $1 .666 W each fwl,reZh ~W

"U"' to "~:deSe, 4

G""" a. . .. ....... .. ... ... . .

I . ..131=k 5 dec- of excess armoun ... . .... ... 2

can 2 112 Percent to 70 Percent of wndfall P11fit35 . ... ...... . .Crude ax as One .. I .W . 2

.. .. .. ... -------E-hononsinifill-l-,um., 1-1 .. .. ... .... ... ... ... .... .. .... ... .... .. .... ... ... .... ... . ... .... .

.. .. .: ~: :, 1-- 42,49 0

7IN81),W

th I ........ .. 13,Foreign moul- noticas by, 1 1111 or 4 10his - -1.1 a, Pl-,U- 39

.799139287

1,255 IKIE ,27 .2'

198 6

17, 372.7118

46134.PS'

1 324 57

5,712

I247

18866,967B 836 638

30:329"~l11 31

'285,1.872

I ~13133.

2

29139.7"147,66343 3"

i37T)(5425,427 )

Table 3-Internal revenue collections by principal sources

(in thousands of dollars )

Tat. Motion, and PrOlIpS hormit

hesmi - Coponstim

FIScUllseen, Ow=-,:

Toss) on- rdl INdWId ..1Prolus I

Eonplothosent Esup,tord Alcohol Toleircco

Trul 911111dru-" passe I-

basil.I Is . . I .

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

67' "' "fl IN 9 7'39 1.3. . , I 460,~' 1'9~'U3:277 1:02413285

4 864,542 31,172,191 10 .174,410 20,997.781 2.38 2

1 29,605.491 11 .553~36, 1, NJ~3101.1 2:41' :'40463125 712 g 1 711

38:957.132 28 .007~659 10.85,f 51 53 U45 5

%gg:r, 37 :1 71 14 69 22:9%7 :109 3,627~""Is . 7" :10,7 21 :387~ 5fil, a 27 to, , 464 2165 46~6 51 5

6i"':~' ' :~" :.73221 5 32.536217 4 .7184

3 1313 ~ ~107169 pla .1 . go 11 2115e 3 1 '23322 6 150~ 0666 :288,PI2 49,914826 18,26s :720 312 If 9:665

2 a 121 ~1 :317~6 2 7.875 12 1& 1 .0 ~tf 0.~1:. 4580.522

80 :17 1 ~Vl go 2 72 7 ~

7

:,,847, ,~.111 :1744 2p:~33 311 ~a 6~1:51,1 a 14 7 .7 73 7, .53 :aN' I7,.,~ . 21g I Of '

. 40:1

911 .774803 67,125,126 22 .179414 44,N5,711 11, IM .5139

,:,, 21 :27.".,4, 46~153 .ddl305 2 57" '0 12,502 1!1194,401 .086 ll 712

7"1:1~7 I99 86

05:125 395 ;5 323 .714 22 .316134 12.N'7 :'I'~41 5~00

12 260:257 78 .891,218 24~b[)0 :863 54,590~354

I4 .4~ l 7%792 .016 26, 1 31,~ 53,660, M

128 B79,961 131 7 30.n,241 61,297.552 20256,133.2511 24~1":2 :42. 34. 61111~111

2'N5:8 I

48,374.1515 OUI as ..5

53 '4 0406 28 we 6"~&' N~ 977, .4 33 57Bl~qlb 1 ~7 III

95.722.M6 38.688.568 35036983 W,651 585 37,449

131,072,374 11,3129.11 752~4161 11 IN, 5~ff 112-111 Ig 3 :1732 112

:Ig 1 43:1711 4,001

Is 57:3,5 39~N 709717 :2 1 1237

4 4.'J34094 14'S:;~23 :M 5622:N 31 :632268

:95':2' 184~6486 094

' :746 .660 156399 .437 70,140,809N3 622 726 202 14 097 4 5

302 .619.792 205.751,753 46,782,956 "1111:797 74 1,2:75 ' 9,808p`05 39 7

. 71 9:2~ .

.144 g7 :02Il :&' :4 051 6~2.~47'17 214'6~N!i 057 60 04D 804 1 B6:7 5 263 86 76 6

3131 .716 27 :943 2"d'i 344'1:.'41~' 2'5131 :645:BS7 112,U9.83, 733 4744604

12:MS 322

.13

519~375 273 359.927 .392 72,379.610 287,W.782 128 .330 80

4pq41, W2 35 717:~~36IN 406 .583,302 73,733.156 332 .850 .146 152885 16

52~ IN "' a63H2941'.0

4 :5 779,556 '49

27 :967 1673 847 .1154627:4274&722993 437 .071 .Ng 74,179 .370 362,891 .679 199.210 .02B

I'd1

742 B71 541 474,072.327 774 2,769 396 65%558 225,214 .568

03)1-

176:1771

'.12

N~3

706,227

7291730333

89 1 :21i374935,1219362,37

1 .171 .2371,377,939

,:12'2111' Is

1 .626,348

1,916,392:13 1

2 7 :41,721.7 7

2.4"

2 14S~31'32

3.13:122d,44 .

. 081 :17~111 13~53P " S3680,076

VINI

1

489

A~975 :01325.100 .6754,6128,079

7IS1 :'4 ~~!4'1

':421.~1255 ~Sj

:1 74551 96 : 98 ;A1

6 1I:'l 42

3'7 3

17 ;6

:22' .6 1 71~6 579,703

mrsheds, Allwhims, orthin,. .. site paundsnom.

(7) (a) (9) (TO)

7922,671 2,421 .9Auf

~:4'1'~'.7'22 2257,3498 1 .425.2W 2 .i~,184

2:215 127 30U7W~ 1 :77'1

21HSON2

~10~.7 ~21

a :Sn 21.

2,219,202 1~328,46,1 1 836 .053 2 .214951

2 :,,,Sao ad 1 2:31 1392 .7 1141,120 1 :3.5:3'62 2 4 . :671W3 2.507gn

2 '2 '7~ :1522,780,925 1,6K91 1 2~162~~ 7

2,783 .012 2. I

. 2:4. 9

2.7,i2 .M0 1 ~ '5701 ~2'I 3 2 .886.016 2,018 .066

2,920,574 ~3 25 1613 3 , " '2,973 19 674 :409M7 3 :112`1 S2' :343~'.

2

964 1~11~gl 3~I74~,13S 2

4 46'. I ' 58 . :166 675

~~802~0% 6 .7,.2

3,193j14 1,931,504 4,735,129 Z034,39ur

12' :W 5823 212,801

l-'R1'3 17 4

".

3021 6 5.120~ 0 2 21EPt:1317

3 :'4'41 ~2." '2~01%237 1,610,301 2 ~L&5363 .111 2 052~-5 6 on :~3 2, M53 7,2 :411 a 4

r34 214 594 6, 18 145 2.AS3 406

3 14 71 2 71~8955 5178:347 21 3 869 ' :489759:.4:87S :'72S 2 :0

.7s l '5~1~13 731 7 '

12 :27,72:P 6 'im

2 914~1~'126. 1 :.

4,746382 2,011,12Q 6 W3 061 2 .3BO.609

3 1 :91:7 31,79 850:4.11 25 1 2

,2

4 :~T200'7~'2773 5' :%2 61.7

5149,513 2.276111 ' 3N :75O 3,750,104

1 .31111437:MS 5

.742 154 3 .572.211

5 .350.B58 2 5.516,611 3,6155 .18 2

~,42~7, 7M21 2 .417 94 5,A86 :.1 . 1 851~0-85 I ~2:1.211,543

1 1 :041 d,612 W,5 2 4S. 9, 3

6

54" 2 39l6 N8 682 3g5l7,g55 681 4 NS63957~

5~6,17192A 2495517 3 UB 4505 1,704768 2:446,416 6,487

~g29:980,416

r , 2g 7 6, :3088 56 226 059, 1135 I~,.1. 2 4 .,ggod 2,397,223

,T4 , 4 1 6,776,023 11,214.%610 9.2:,4s7 4:g3 :1

0io,107 .930 r17 0,13 4 9

5,398,100 4,483 .19310,

020,574 7 :103 07 7

782,251 .812 497.010 003 W.441 .620 416.668,364 244.374,767 7.194,956 5 647.485 4607,845 9.927,742 13,489.014

0~0~ ~,Fsrif;za 4~V*47A~~'Vt'~i.15 4 5

Footnotes for Tables 1- 3Leas Man $500

- reyised

NOls : Detail may NOR add to mine due mmuritfiNg Nepa,etw adjusupplaa made S, prior roporml cata .

Thermaptstothe~~ .~~W-C.~~,,~d~t"in

"".1 "burden .1 "' a ' Olleclace, ..1. Imm de= an= 9to. `c~"r'=j'~mMhhm1INg trumsowned ~7-Pldyhs located near State I MtlaJ amounar ythheld ham Me,,. of

Or IWUOO authors,I h,, , surces so this abasph~diprlf ONN. IN.Ugh M.

ne may be located in"Monalons am Paid

another sion, a, throughout sonerat -1 .

2. lwudnwxmonunmlat~dW...,.-~ .f-mptamanintrons

3 CdlmtionsolildllidUWi- .M.- .Ihheld,WtOooid.Q ., -I's diseblfil~, and hoapdat-ands, raxrd on it.mPlayment morne, IS CA) . Sunuarly, the lolial of inchidualIndathe tax li~tlhhold are reached in corhimed amounts With, dogo Su.- S. disability. and hospirtalms .- taxes (FICA) an

d farsalaries and rges Estimated somem national totals for inifildualincome tax an I mployment taxes am Sh-nM this fichr, table,Gross ritennal mrO d a used inra 1= collections, on Page 10 a npolar ng noto t S for ind,,duai

nogin.fame and fv employ,

mant domain Table 3.

1 11 -PlIgIMUP, a1.dpp1,~.-,rmdOd1 Ov the Fdaral 'Iturat.:'Cohrm. S Iare In rmficlur Guam and

American Samna. Amounts of Such taxes c .1flei Guam andiAmerican Samoa are combined win windar Wma reported for the

"Foreign Operations District - Other"

5 . Includes fidwary income Is, collocamps of S4 5 bipm,

6 . The natirl tofiai,fho., Df . y,,,~,NjgNt does not mi Onadjusehont

I

aps by PAI 'in I

he Traosurry after our books-ra doaddi to Nchurdo "Ind

.duel McxMd taxWINNOW .~,d FICA"

Edmrmmnl,ngly.dwfew,'~U~-pl,~, .~t,-r~me by96 3870DOThis djusament does Not affect mgmriW w district

data

7 To nai made to banks, under the (Moral W deibmt

(FTC) ="are "I'm='Ne"n= =r""I""'s far11.

NhoOm -ch In- FID Ubm Such pa""are act tied byatternal michus districts, (nor

by "u 01ass.

to wh=.-. W Payments nefirop hill No IRS applas them to,'ataxpayer S usbrififiree

8 Rephisparre Credits alloxxi an income fox returns to, contentgasoline, diesel, and Special moto, fieds - p%eT k~,0 b~nMass Payments under the Federal Insupince on! as

9. DftgmtionsbY=PaYeMOOMd,motth~r~MlheINPrOsrdentiSi election campaign fund are not

- a a.because 11 1 do no, pff.1 domayer ImblSy To.lTtarh '.I amcun`~ Ithe fund a. made On . national badra any and Memo. hays notrificc an

district and regional Poiledow dam

F,10. Amounts Offset against buistaildlNg IS, halphl,es other thanthose for ona 1040 and 1040A On ymtch the Cmduts eem claimed

11 lWudmammntscwtaind,nth~mb.na~t=l,lut .t11=g.1m lr~d.~hdl IS 11 IN spol Of the fiscal "a, Al.in n~lfim red'.

Is soacei account far the NorthernMariam Islands,

12 . The Is, Reform kS of l9a4 reduhas cNan alcohol andtobacco =IN W MISS to make tax payments Oy electronic fundtransfer (EFF .These EFT Payments am no reported by

hi"',diSsJ~ct Office, therefore. data may hot do comparable to chsla. dataPu anedhn prior yeam .

13 Amountaahriternal-nut,tamsodleducan Pueno Ricanproducts themponed 1. the Untied ~'..s or consumed on the 'Und

MI a "'IN ,oul of lu"e=V,== 1'~`S2W(au)(,-,ahd` M11 14mX4)Of the Internet Heyenue Code of 1954, The gross mounts areincluded in mrall coile- results (Tables 1 through 3) .

14 . Includes, manafddiumrj~ redleamnal torchut ithas on plabla andmyslyOrs, fishing bacs, bcniS, and aboxis fifiasph Spells and=.. ind el .t. mIMq momrs and fish f,'d,ng sons ,

15. Contains. armanp Other =,PUhtSg%dmj2~0Nadp,p, .Sbut III yal classified nt

. 7 ,hfi,~N and mappea d,eNm=md QuantityFar, ns "ad Gerits. FOrms ii.

are filed andtype of oped n the quanor 'heq,uaner Of Payment mad a dep-tuy

, Nthe

C SM11carthon ol amounts Ominously INO'

16, CWMrateta,ratug~rallymngedfmml5tD46MMerIC9teasue-me .

17. Indytd-no 'a1ahoIbI .Moome .

Zud"M'sis MhNdtrom I to 50 wment of0 SECAas Mh an effecaw W into

of h ht u-gh 3~ 'ml carda),mNsed O n

I %rd' ` r=Xi" 600 for is, year 1985. In taxWyear 1986 . the rate morassed to an a -w rate of 12,3 percent04~30~rceht Im 2.0 percers),rhiposed On Income throughSo

18 Income toxx eythhOlding rates angood from 15 10 39 Fament, Inrax -

1985 the cmbneFICA rate of 14 1 paroml m-posed

~2a xeme base throughTh eSham raw=39=7 "i Zra"'P to

000reas .V5 parca -Players

and crintiloyded, in tax year 1986 .

19 Ralmadmarement What - ch,ded! into fi~ofiam for bothemployers and emplayses The nor I M, rate -Ummosaiji men705 percent each on the first $39.600 d COMPONSS ch paid in 198510 7.15 dephmt Of the firSt S42 .000 CA comporeattion wld,n 1986Tier 11 taxes wers increased from 13.75 pelcont 1. 14 .75 Percent faremployers and imm 3.5 percent so 4.25 pencent for employalas Thea es app, Of

Iad to the firial S29,700 a conmensatron pop for INS and

to the finu $3 1,500 Of con,den-On pard 1., 1986

Emoloyemofoneormol. .r-~~~-hdM .)~,mr

-or -hp bad -gas ~JM- morp. in .7 land., quara,,

-ra taxed 12 percent on :. ims U 7(

to $ .000 for 1986 INSeras roomed by dredlot 01 Up to 5 4 Percent for unemploymentC ibt

.air Unions paid 1. sta.,

21d The Economic Raboyary Tax Act at of 1981 -d tho -Wan

"Ifox und" credit from S47,000 to $192 .600 to Up PhIsed in

-- Iw

jar Period ($121 .800 credit for 1985 and S155,WO creditf~ 1I .). Aso. Me "'= ~'houdinpualfie~ th dpu. an 1,

1000t.S10000' .", Ilit,

2!Tnd ovided forannual rather than quarterlyPereturn eras due A i otums and Payments The hau annual

22,effiedtlys October 1 . 1985 (Public Later 98-369).

23 Aons-firms floo,slacks to, -MNp-P .n anst,led sornts heldfar attle on October 1, 1985 (Pubic Lm 98-369) .

24 Rectit-lon IS- roppered effect- January 1 . 1980 (Public- 96-39 )

25 RemdW Species, Nmmber 1. 1994 ftblic L~ 98-369),

26 Eliminated Ory the lo, Retopn kt of 197 6

inu 198 627 Phyrous debut ho Ionger ayl due to a tax form WsiIff.b. J ary 1, 1

28. Dealers Win gasphnis held to, Said on Apat 1, 1960 -oso '97assess, a Onetime tax (Public Layx -424)

29 HIghwayhoo lime taxed a$ tOll- hot rhom than 40 Pounds,no drx~ mcneffian 40, but poi Mors than 70 bouaft 15 came per$4 ~~Pound over 40 pounds; - 70, put W more than DO Pounds,

.50 Plus 30 Cents per Pound cyar 70 pounds: and Orw mr 90

Pounds $Id 50 plus 50cents par nouNd - 90 pounds. IhxOS on

lead rubber ShdnNr tureas repealed officish,d January 1. 1984(Public Laar 97-424)

11 ~111 Vast ece asureassidd] . .-ume flodrhod,

rbl.1 ho.dngal

97124), sed_ignt . effective January 1 . 1984 (Public Lini

It RIII'llel"dlrl;ll~nI.ndlj%~rll..nl-llr-u.r-groUnd mines and,_

c an Ion coal from

sUrfacc in., effect- Aphl 1, 1986 (Public Lae, 99-272).

12. Expired September 30, 1980 . Officially repealed by Public Lm"_248.

33 Vehid" Oigh,ng-r 55 .000idounds, Md$100 nue $22each TWO Pounds dyer 55,DW paunde: oyar 75,000 -pos,$550, Prior to July 1, 1984, xshclea ee,ghng Over 26.wD poundsMM Wed $3 ber thousand poubas,

34, Transfer W machine guns, shon-Whaled brearms, slandem,rac .. $200 a., .-n gUma h contipmation Sposigurn and fifilebarrels, and One, SPedual IYPOS Of firearms, $5 each. Oucxaoahe~

taxesor

. loyed on ma&,turem, eprooners or dealers in firessernis atthe rain of $10. $25 , and M per yea r

35, Crude 04 Ini Prottiax am-assichen in thesslablesared Inundornpiso becauso they reflect dn~jy roundi, from returns prod .

me by I . end of the reporanger ad

c- re"h -it

on crude oil wndfaJi profit usma. refer to th . '101 PU.17p- d

quart.rly by the IRS (Publ..- 1136). in UINishod

3& Expired September ID, 198 5

37. Tax-easedforps anpeol$500- $2650tor 1985model .year a tornotiles to M - S3.1150 for 1986-model-year automobiles

U0based an Varcus fuel economy Id,SfiS (Public LM 95-502)

38. Tax rate increased ftom 6 to l0cends par gallon, ShadowOctober 1, 1985 (Pubic - 95-502)

39 Includas both amounts collected or adjusted for Users that hareebeen repoused of him ibremp and taxes not clawhed Separately inTables 1 and 2.

vwwmv ~ZA~.Vv~~w RAKW,

1hble 4.-Amount of internal revenue refunds ineluding interest(in thousands of dollars)

bdunni := =.M .Vrad". . ...m., p-.tW bydl,ud~ NwhoodW 1, ponmisIo,- ustel,

.- .1-.- M too... .1 tololif.)

roof Corponflida Whidd,al Employaren Efred. Gift Erial .I inco" I....1

- - (1)

.. .... .... .. .... .... ... "N ,

.00,Atlantic Reg . ... ... ... .... .... .. .... .... ... "012.619AVdem~

hCV-) ..... .............. 63 A's.. .......... . ..........

(m.-ch-M) 44Z511

Buffalo,so,

1,615 .6"96He,MV,-h-h .. sea P bell 3

. 1 oll 111P'_mV.a RP-h -H""N"'

3 A: p Island)

32"Mid-AIN .11" R"'em 13,2072 21,165"

s .... ............. ......... 5M.D6'u .. 75U1235

01, 2a2Z'l, ...... .. .. ... A14-j .'so') 3,732.W'Ni.delph. ~.,j lbal:~ : : 21 : .11III h

.: .. .......... ..... as

R no 2~009 20.. .. ............ Do-wej ......... . ............. 40939

'I on . .... ... .. aw.. .... ... ... .... ... ... .... . 13A Ve .. ...... . .. . ........ ..... ( gud . ............ .........

1 :073,96~82.1.". B91 ~377Gmenedi 74 89j.. ...... 5779 N2j.-H, VFV~,da) .. .... . . .. . ....... 3 NO "'-,,n Roci, S" U5NaMWI. 1

.

'72'.171

N- Orleans ............. ..... Lou...) ........ .. . . ........ .. 1,57 Go?C .N.1 Reg a. .. .... .... ... .. 11,437.345

c nceine, 41191~dd) 21 :2'

" :~"

Dan.,, 4,26D,405hei rd'and) 1,762,331Lou,s~ eltucky) 143121

Pa"C's R2

V ~7' :s

Mw.est Reels, . ... .... ... ... . .. ... .... ... 11,342,mA-arn ~8:th Dal,des) 158,07

) bad.) 4,073 , 6Aaz~...... .... .. BID 631

F.. .......... ............ . (North D.k-) 172. 3H=. 2,7

mii-km n.n 1 439 :02

0.. ....... .. .. ... ...... ..... (N .1emsid) 55t, 3S L- ..... .. ............. .....(M-n) ~ ........... 1 .589,38797S: Pa.; ...... .. ............. .....(M-1.) 1425,914111%eld ifin: 1. INW-) WSW.a in

Rifii .... ... ... .... ... .... ... ... .... ... ... .... ...14

.253.4%Maud. mt.. ......... ... .... ~(Ne. M.-) . ... .. 427.093A use . " ...... .. ............ (Son M bal q :q :::::qp :~ 2 , 04 Sooch 1823288

52 .87Do-. .......... ........ VC~ ...) ............ ......... 11 :3053 U16H.- ~Sea 2, :966 1

owr,ehmi) W7713

oa -a,, ~A 0s ""a "M442 :2353

'VV-AV 909,937iortumn, .. ... .... ... ... .... .... .. .... ... .... 16, .2B.U9Anchor ~Alaald,) 111:47

72 .

7797H-Au .. .. ............. .....(IH-...i,) ........... .......... 3,338 :64Legume N,gu ........... .... (See (a) bclm~l ..... ......... 10952

L.A= ::j='(a" I 'M 1'85Pare .nd (Oregon) 1.1 :~41

San F,-soV ~a~ ......... ... 2 .11 7MSVh joes. I'll. Isa-. ..' :::* . .::::::::::: :::: rVsn)tV.' I.'M&2'29

. .... .... ... fin. 87mi. .. .... .. ... ........... ...G Vdan, and -ass, FiCA credits 939.351

u. s customi Be-5 1 343Earned income venct 56~osaR .1un. -N.]. und.sphool . ...... ........... .. . ........ ... (18,966)

T .W. far ... of filf,ca,mi W..

0hre .- . ............. ...P,hna,im-

(2) (3) (4) (5)

18,227,222 73,077 Me 1',nhi 2462592,882,1102 9,765,507 302.065 34 :911 9

50,780 571 .111 M 977

2':17 298 ,

27 S412 714

487 121 177 " 477'2

3 a,BD..'B J'~~'751. ~3:37g 5 423

111:271 1,221 :441 18,592 1 633~4 1

2'7" 1 am 559

330,7 12 '17!173 4:052

B1,408,111 1,566031 244 17.702

'1 6.151 749

B 6 023 (507),17 '27"1 :91412

2,386, 1 10.362,304 342.6W 37,735N9,093 1,W9 .673 66608 5 831125.133 426,71, 27.781

2887

' 37' 31:tl 16:0712 103

122,757 6555 ~`

2,1"'111:'711 2:17117 129 .137 7.530~'g 1 2,

06672 51,827 16 T357.098 1 1 30 ~2 32 .047 1 :76273,292 1. 699,196 30 .109 2411278,935 178,963 1 . 42

5-1 .801 .91 11,016.624 247,'39

43,824284,576 1,7K675 ~ :617475

":' 5133.33 NI, IS "D93,070 779 .023 12,401 1

7B3251,313 1,463,005 N .5,17 1 ~257

45277 524 .568 8 :585 27~5

462481 3,119116 8138. 22,74

62,706 470,966 9 .412 528209460 213 25,139 8 2U259:696 1:20,7B3 36,011 3!807

2,2U,w6 0 .905,643 1 "'668 17,47429 .270 1.425094 21,015 2.556374 045 l.a38,232 28 .665 42111,250

:174 2,933 .173 61,130 6:B2g

20211 1.134 .07 71 2428B2:0 B2B1 1 5B 1'1

:70' BE36.717 426928 6359 3852.30,1, 41 B,807,742

155.5"'22,46

20.599 135 114 1 .788 2071,098,865 2.871,78B 72 .295 17818 '!2

im:51 644,189 4OD17 893 152,209 1

:29" 229ROD 192,271 2 1 323, .a 4

15:1 1~052171,25 '1':" B 00 1465235 483 1 .31 .866 A 057 388574 M269421 1 137 5~ 16 .2 Bkul125,433 760,383 7,162 2.672

3,M' IN 91"D 10258901 31,062

3B 15, 377~M5 9Z7 9B9441!411 1 150% 32~ NO 8,20822

'1 1 So IN BOA, 31'1 .1 3736 2 32' .5 1 ' 80 8,773

211 2:.55 1 066935 2201 1 .6331,09 .166 1 530,593 46,742 4,W272262 936,296 1~1~4' 2:1131,966 937,620 786 2

'N

14~74'3 6 376 242 9

.021 323'B5 to14,528

1

1~7.743,184 4W 12,824,221 Xiu, M Be 327~2266 211~2241 7~50 92'S 60 209 88 3 993 321~,114 297,A67 5,876 at

5

361 .337 2,726~124 64 . 79 7.73267 BS,032

1,2 ~2.32' 2,"17,.S 71'~ 18.'221 5M '4 283

1 6'102 803 712 16 . " 3848

70462 1 2 .,057 21,679 3753,167 1 277~3 72 15:9208

01 '73'0 2 6298.139 1697

4B5 41

176 509 1 .321,646 26 , 988 2:5.1

- 774 357 -- 737 264

- 56.0~8

(6) M

41,57 N2,"5 1741 26,89IN 532

369175 2,9392D B 90318 1 731 3D

.

135 2865

1328

4 291,15, 77 157197 to'e(k,146 1 .446

I Z6 8~

'12

263 3d'M54 20218

197 3,721(IN) ~,400

5 3405.61? .a

"26; 12,1"q

9N 2 .'g206 7028

2,717 7,38 7G551 9,2621

04 6 665121 36, 50D, 6

m 6~ 31 '11553 II .B5145 3 . 961 to

.439a 9"

242 52,426SO 31 3

4GI 21 we24 2 :587

31646

13 3.7365 971

(320)1 11

:4D

1 5.5117

9 B4932,840 600.628

46"1165 5 .74'

2

.2

2,461 6720 621IB2 287 "64 1 33 :'1 5'1 66255

1029,051 3798752 IC0973 372

2 .920ISI 3197 3.7

843DO22246 44,21 4

231 8 .1901 339 41 .0~78 (95, 519)

IT2

2.3j'31

12 :~67151~171 2 121.1 :B' 9,592,972 278 .129 50:~1~1 4 273 1 4744

1 "

1 :2298 3.632 7' " 1

410 26:857

7 :B90 :71 g' 1 IS'4 7 11

3 99V 1~~1612~130 1~643 g. 7 12 25765 412 19 :736703 7 3'~ g

2" 49.680 6 788 118 124 6

4 :"A "'770609 3,237..014 83,074 1 1 12'

739 M . 9 96533762 2,582,173 5 .402 156 164,827'1

:621 2,808 360 .276

I ~-1111 am, 11CA . NVIIII hellarrall old 11.111 1111oll BID 111112.. 111hrol hoome credits I funded, mounting Is $1.5 billon, one relunds announting W $223 mf1w one or, parthashp shut fidwaly-ome M, returns,a,~Vhcaucds cried

.

to, ga

..hn. and lula-I'Vig old - wymem .

moludo crec4ts forabicess PaYmente under the Werai Old age and survr-' dVVVb1Vy and federal hospiMl funds, amounting W $737 mifl-

The bNacsofthisformisher

is In. U. S Cu- S-ca Culcons does nct'Woooride the count of the number of NfiundV,-Vd far thisdann ,

Far-a - do. tied by detrct before Sept. 30, 1986 (Me end at the fiscal yea,),NVudm refunds asi Septermber 1986 arnus etund r,,wsals Nic-Om September 1986 thot

fraerlV-atng and coarpoebw Mr- Me data IncludeOV, this table muVi agree ~h the actual careacb0ho affecting ON, refund and interest approiNation accounts for the fisclo

7 Amounts my nol add due to mnd,,g

Table 5-Number of internal revenue refunds issued

I..%]= red..-0 B'

. led by.hngW olarlet,, IndVowl 1. ponerahooeoi; tol10, =r -- honn. of ba . .. .1 bible .)

7-1 Corponal- lailhill EmploymentI i- - G"I IEAC~

U ."ed S-. 1-1 . ... .... .... .. .... ... ... .... ... ...NWJ~Atisafic RegVVen . ... .. .... ... .... .. .... .... .. .... ... ...

Me,J-Ationti, Region : ... ... .... ... ... .:. .... .... ... ... ..

1-qn 0~.,.,Vons ............ ....... -. .......... ---....... .. ...... . ....... .... .......

S.W".'

Rni on . ... ... ..:. ... ... .... .:. .... ... ... ... ... .... .AV.. ... . ......B,Innmt~- - :1,= - : ::: : . : :: :: : :: :

C"'Um

.-(SaUth Cord-

Gr-hol. . ... .. ..... .. .....g,lorth111n (.--pp)jacl,ad-

'a

F,

Aurns

R.1,NMwleN-0oa-V . ... ........ .

Control Rgle . ... ... .... ... ... .... .... .. .... ... ... .... ... .... ...C.- he. ...... -Do_Qd~aad "..-CM ~dj

noLour-IA . ...... ... .......1, leVbu ast h;,-ff."~ R

... ... ... .... ... ... .... ... ... .... ... ...6Sauh

[)=~~ ...... ...........a (b )) .. ....... .....

Fargo 14.0, D.kot.i .... .. ........He-M-kei ==NOman. .$I L.,S, Paul

Sol" . ... ... .... ... .... ... .... .. .... ... ... .... ... ..Allbuqued~a . ... . ... ........Ausen

DChay .n. ......... (Wy-ng ;`!)..0 . )

Houshan . doo')N .) ...... ............ ......

0 Arcon.) . ...... ............ .....Saft Llk!W-Va

WeirtaZinakeegion .... ... ... .... ... ... .... ... ... ... .... .... ... ... .AmBence

HonoduL.p. NiguelL.

'L.Pont.. no ...... N) he

Sac (.`DN`Lowi -: : :::San Fr,m,!co

. son

San Joas. FS.N. (w- QtoN.... ... .... ... ... ... .... ...

Dinner, lal"lis n ;... ..n

(1) (2) (3) (4) (5) (6) -M77,927. .32 853,061 74.274.3011 2,625,3U 13 .n2 1,126 159 .210,M4,1117 103,U7 10.337.76

2740 767 11"', 1,9,8 In

42'3':'M"I 3,M1 4" :" ~1 758 4012 '3 M3 64 .295 293 27 2 1'2I A"

!Pl 7BJS

:4.I ':ON 26~ 7 2.1402 22 75 8~

" :2,3

11,932 ' .'7.4 B ~11 2 :7 3 194 16 2.431

,Be 70122M 17 0 B 9" 2A 2 5451 .313,4 60 11 925 12U.DD6 44, 78 34D 29 1.8731,453 .737 22:513 1,340,752 87 0684 645 73 2070382,059 3.BO7 364:69 12,806 SO 5359 .97B 3.9B2 NS 523 9 .920 28 570212111977,11115 94.033 ,437 .357 418,339 11876 115 21 SOS

2,108879 18,793 2,013013 71:~1 ~15 360 M 3~111315454 2,760 211:1 2,

142 7 227

71,192 so 747 22.U62 - 'I

3.2" .262 2,680 237,586 3.637 14 7 21 2177 M3 26475 3 005.416 139.034 W5 20 5,2832 632 :164 17,976 2,530.101 80,216 352 23 3496

1 .401 .209 9,019 1,429.803 39.235 1 7 12:177 1 ~141 422

6 1 13 2 :112.022 :924 11 5.2:72.3 2

.

2n,l 4329M 2~2:269 3 5 4 .

15.1 42 4 39,42.508 143 . 47 14,493,399 M,6111 2,010 32, 52,

1T063 .n5 8,905 1 .97':559 61,302 153 23 3353

1,249.433 8 .9 207 178 31 :1 1 62 18 2,2352 4

1 B 171 :.1~12' :1 41 U22'1~24'

12.

IB291 7"37'179 2

. S B5..4 1 M 21 4

743668 5,4" 715,902 20.692 43 5 1,5624

1 54 .030,682 4403 3,B22,561 157.50 565,1.219 :.08 631,~6 17.027

39 89 565

1 .741 .949 16,130 1663,536 52.729 280 51 .054

1 104.321 17.797 1 W6,300 47,338 29524 9,1501O .Us' 21 2,572213 1~121,12s4~124 I* U5, Mg 1,137 '05 17,. 11,695 468851

Ill642,811 35 704 221 15 2,521

2 .104.040 20,195 2.033,342 47.04 1 292 20 3,150

2 71 3 7'0 3 2D2 23 4 7%M"01 tq 2 12':

31 B, 1 21 94 443 :333S

6Mo~g2~ 223 3 1197048.983 5 542 1 .OIB,451 2 .305 83 5 IS',

~3.235 3217 527,656 11,630 26610,583,00 126 .123 10,163,269 267.61 5

205 849 3 .071 196 .027 5742 66 126 24,249

3028,401 31 .430 2911,192 8041751 11 D47

440 35 4.987861,416 14,932 121 7 IS1 :1 aI

B:733

'2 69 1 2.03201,86S 2 :1 4 1 41 52 1 9641,256056 B 116 24007 8 .504 60 4 1 .285595,798 11 :3" 1,53uf 828 3B~596 1 92 17 3 We1 0,849 9 492 47~5~663 13 .70B 1 20 6 1,860

.992 Maui 1,56 505 43 .B62 281 13 76979 01 .3,11 024 11,972 1,298.587 2864B 11 11:69795 , a 9,213 928.070 20,169 21 214.091,524 140,11111 13.637,907 3a,7,361 210 23 ..1 "2484,009 4,845 462.600 5,679 Q Be1,11~1 :2 1' 22.7013 1 .781,864 15 84 25~ 31 4,16'B

20 3,155 158,2057;4

IDD:097 331 1 12.UB,101 32,494 2,M897 '3' 67 4.735

,1 2:3 3,11 15679 1 .052812 38,542 161 2110 71378Z 4 6W:73 55~ 008 21,022 . 971 79 33715 11 31 2

15 6501 032,603" 'j,2 92 163 986.692 32649 159 1:360

472':41 74 4413 456324 1

'4SO U 1 ~S5 34 6 6022,485 763,092 2 694 164 12 2,007

13.082,356 161 .200 12 .432 .nl 460.252 3,4n W 21.95 1

"I I "' 3. 1 119:17 B31 13 3 72427 976 3 26

g

96:998 2279,621 28 1 1 tu37 5:N12 57 360726 10.72D 64 7 U 52

.

630.194 26282 2 .512770 87,134 532 26 3,450.:012 3527 329126 11,268 49 11 5612 1 1 31,142 2,329 063 91'B20 762 4 17016,869 993356 32,544 339 14561,047.587 23 4:1 241 .051 10,072 1,190,309 38, 21 231 13 1.505

1,312.162 W.142 1 .229,656 57 86 614 27 36631 705,a36 M.976 1,619.U7 61~630 .6 a 2,9191,496 ON 20,058 1 422.324 50409 195 4 3018(5,173,07)

(8,173,097) (8,173 .097)

Tolools for frodes net Mm, above

9.US2~ 108 .614 1 881 .645 337,365 2,785 132 14:71 "3.988,199 40,643 3 839,262 100586 of 50 7 .21

':07412 57 55 :431 5776,709 215,688 1,191 106 7S

2'6 .i"'3:~67~6 :"l 745 513 35 714:113,373 .5 , 5

:~11

S I IB :451 526 36 6,46 1995 GD4 74 .171 8,686479 222,D97 798 129 12,020

I Ircluodi IODSOD mfunds I-W 1. fiduceiVes end2 in MUe 4, amount of mernsi -d 1eW,dV Including interest refund arrhoante or . 9-

far these crod'NV claesdied Dy district before Sept. 30. 1986 (the end ol the h=t year) .~ Incluces netunds issued in Separron, 1986 r- fund ndoersel ndc~ in September 1986

that and interes: appropriation accounts for the fiscalYFLr'socotmang and comparaVve ourposes, the data included in this Mbe must agree ,,Vh the actual dansacb- affecting the refund

M- .S~Z;axz 49

7bble 6.-Number of returns file d

`Z"rh :1W*=711~smsnd dfiabft1l, small Ione InaraIrmad by

Total be, :adid.fid,al Utinumadamia. In bammubaban: e.W t.- -me.to, am., -- mmun, art beftma W otal ..)

Ffid'emy pahmanabb, "i=t= Ealred. -

(1) (2) a (3) Fit

Unit" Sones"o"I .. ... .... .... ... ... .... ... .::: ::: 158,017 .027 102,393,211 35,4115,439 2,305,21 7

NIhh,AUI .I. Intern .. ... ... .... .... ... ... .... ... .... 25,712,osa 13,6412,110 5,059, 89 11

A,'lanve 1,658560 .. 6319410 15,951

ame) . .. ............ ........... . 914,041 11, : 1,59 173 Do 11,92 7Boston ....... .... .3U 2.7W,874

1'1113.552 102,569

Bleakly 398 We 2,96I .E03 31 .2545M......... ..... ...... ...... eaow 3,298,946 1,890,124 W3M 39.861

'uh,mgIon 4 9400 230 .664 N .439 6,146-mm.hj .

.:::. :~ 2960054 1 564,316 643 SW 5' .T`4

Mumation (0 boa, ... .......... 4,215,601 1,829 .551 758 .1391 1 ": ..P-.m New Hompon"t) B93 :536 412 1 7~1 :41 1 '564~' :21 a

.P,,,d,m,, ..... .. ...(Rhode island) 793M B 15 12,lD3I~Allfiahtfie 26, 14,692

,!! 450, 56 511 6,091,687 361,558

l3raft- 4,267,6W 2,4W .492 737 951 W 126F-p,Or .............. ............. ........... 1,144,U3 562,169 201,185 1 195P'..'

34 .393 96,406 58,336 236Other 797,960 4 71 41~11 959

New.h, 771 81 13,

6925,085 3 , 78~3 '2 455 655W5.963,lM 3290,738 1276742 122.439

R- .1, 3,263 .11,17 1 .1348 488 687,242 485MrR.h- 4,30323 2 Mr4 .650 7965 250 43.652

-,a) ......... ... ....... 528,469 287,593 5,862 12.096.. ... .... .... .... .. .... ... .... . 33,100,4115 18,426,973 5,919 .386 296 .0"S

ftrues 4.167,!545 2470 .659 565.613 31 .6928-hm'

2hrom 609 1,505.190 355,631 22,267

GO. . . ......... ............ !3outh C-Im.) 2:11 1 743 1 .316 .~ 319,625 15,472G, ..-' :~:j-: :~ :::::::jNohh Card'-) 4,522251 2,04656 726282 43265Jac-n -OF,) 1. 556 9,321' .. !12 911,289 225,683Jwl,aamhi~ ............ (Flamer) ........... .......... 36SO45 5 129,905 2 .461,615 114654LAtle Rock ......... ............ 1:26~11 312 874,191 291.W2 13317Nas1wrfie ........... ..........

. an 3 1.593 1 :6"' 385 510616 28 157

New 00 be he ..... ............(L-nal ........ ..... ...... ..... 2,951.A70 63 IN 456419 17,903Cammal A.,illon .... ... .... ... ... .... .... ... ... .... ... ... .... ... . 21 .US,490 12 .639,017 3~918 6.9 270.906OnOrman .

(Ses be :j 1 .316.62() 1 .933,516 593~ND 45,349Clanetanc! 4,562.137 2,590210 854898 57,821Dre.1 6 4788~831 ~,fil 1 .089 1,070.844 68,13,16317

. . 2""200 776 108 57,147

,t,cky) 23fil,614 1 .111!~171~1 414.~1411 29 :161RE Wg"at 1 157,577 N4

200

112 2B2

M Rgom*.. .... ... ... .... ... ..

. .. .... .... 25.351 .190 13 .536 .327 5 .241,961 us'..Athoolmm rs, Dgk' 562 W4 2M.87B 116.713 6 .407ch" a

:1 :.: :..: 6 602,393 3659.603 1.300,568 119093

lowe 2.32 .139 1,157.028 549,231 41,890North 66 515 277,821 119.924 7,151

..a. 6974 60 77

fi'~4 IM-kaa ........... .... 3 .750J"13 2, 017:9112'

7131 :~111 67213

Omaha .... .............. ........(Nebrastou ........ ............ .... 1,321,81), 672.499 270,539 t7 508~1 3 :912 . 1.091 .8,11 840.287 53185

3325382 1,807,777 639r3N 39,925S, I,Imniiadcl 2,28075. 1,231216 513667 32,471

... ... ... . .... 24,51111,1115 13,217,214 1211 .01111 276.MAfteum, 597.057 111695 8029~.finm . Fin'=) :::: 31~8'2717'8 2,142.36,1 599,519 37A97Llay 1 079 2D6.695 69,334 382as : : .: ." ba

5492.082 2,911,325 894 .686 :.11Deh- -.... ......... Colorado) ............ . 1702.690 1 .430,7A7 443,229 31,373H-On .. (S- -) 3 0,15.902 1,674,785 424030 33 .215Owamema, crty .... ... ... (0W=) 2444,358 1,2131 .997 A42:533 2U27Phoem,

'61SO Lal, .A 2 1,312,416 506,757 29'WS

593402 136521 15,4~ol" 68W... ...... ......... .. .. (Kenese) 2.X

W2 1,036,426 447,381 27021W=R,glo . ... ... .... ... ... ... .... .... ... ... .... 30,948,493 16 .279,999 6 .125,282 31 1 3 1

'go 42 028 238,W7 37~M 1~464'M 702808 367.48,11 125,601

6~387.... .. .. ............ .(He ..,) 789 172,022 iW860

I-a' . .".6 (S. (a) W-) 6J31:1 1,414141~1113 1 .2.747 4114285 ':733I-as ~.u as ....... '7d

L.AresN-, I ~;' 2 HE)

5 712.6" 3.007.8432 1 0 1~82 80 W707 3."'pom, Greg.) 2230. 91 1,125.964 460 .373 24601

S.I. 3 652,098 I,Sr5l .324 Eo,8133 Za..38San F S

. ': 6 1.359 .9o oB,W5 38.662

San J, 15e E5 4189,137"'Z

2.187,626 829,706 36.048Sater's (W.-Woh) 3.628,988 1 .03 .975 709 .140 35,970

Total. to, ..' . ..' ahean, -

Grit ne Empletmenhat

(5) (6) (7) (at (9)

1 .8"It"fill 31666937 71,518 102 .965 27,931,915201 .307 597. 97 11,233 7,0" 3 ."7, 93

11,617 29,092 583 1029 121:125,339 15 :689

0 'o

'46

'4'29,772 1 WIN 2.300 3372 I91 .OBB38.441 143,162 2.048 2,253 753,54023.468 49416 1 .04 2.670 428,71 63,W 100, 143 224 88,272

26,660 SB W7 1 .395 2.2W 410 34451,443 1!11 .552 2 .W6 3.6613 84'

:685

5.902 16019 266 478 13, 2DS5,079 19,264, 262 332 2(r,492

225,379 .90 2 12 .275 3,770,01 841 W8 BU"N I INN' 2,397 626,772

1 68322

"S 611 111 214 :1189

642 2, 2, 185 752

1,4 . 22206 08 IN 29ouW'610 173,1PI9 2,576 2.WD 98075551 .451 92,093 2 .IW 2.525 7 82328 .239 38,943 867 1,335 4U,32637,442 75861 1 .455 2,519 65011 14 .146 14,122 247 37 5 79426

20.369 682,465 ,,IN 16,795 5,232330 846 79,7W 1,114 1 985 o 1 ~ 7 goo17,827 37521 614

1. 293 407,763

17 .030 39.019 07 11199..36,399 7 1 .317 2,701 727 :'775

234

12132 ':'965 N 710 269 B&l70036 275,M 4 684 6 964 1,524,14914265 28,955 461 897 25887931,80B 46 U7

. .23,NS 72,782 771 1 :1'4'~' 4'85..9'1 G'178,415 371 .471 5,994 9,755 3,066,1147

28,665 49,2U 1 .074 1 .603 447.05035 .~ 76,661 1 .269 2,110 624,37256 .6,13 118977 1 .510 2,414 - W7.65125,777 69 113 1 .199 1,96B 537,37521 .~i 39285 U3 1 .250 374,54010 .1o IB 13, 299 410 175,B59

239.101 470,664 10131 3"n""0196 .035 B.8o 250 516 97 M

64,165 138.206 2,571 11 :,31 86796222,454 42:21 1,157 33 3555606,178 it I ~` 30

.. Nj21

I14.~5 339 720 121 30

V~2'69 65.015 992 3 .176 554,99214 250 27.4U 71 ~31,505 71 .121 1 j

:lil 17177:4129 76 5 766

35422 Kol 1,197 2,491 484,30717,5137 28.700 1,260 1 .154 324,97 1

344,361 196 .857 9,4116 15,2" 3,794,561111 .974 17,475 316 540 161,97847,193 61,513 1 .569 2 .967 5W,90"6004 9241 469 IN 73,179

90,786 108467 2,1o 3.164 875,87343,589 65.193 9W 1 N7 4~ 6 1044.193 70 555 l'o,, 1 .562 4527131 .611 51 .1fi54 1 .156 1579 316~48`329,309 51 .671 N5 1,2tO .3 1,39519,610 23 .870 252 M9 155,95D20,192 36.9W 999 1 .536 325,436

03,529 549,341 13 .960 13,236 4,514, 27.795 9.072 1 37 719.978 13,878 217 305 12

:1

20,555 351 932.4W

121 .22571523 106487 IN5 8216818,959 17,988 232 422 108,788

02,675 12,1391 3,Wl 1,974 871,27024.258 40777 844 1,850 ~ 951347.W5 49336 1,595 1 :1 511~731733.0811 4 16 2,ozia 1 272

37473

57,~6 6 ; :8472 1,964 1 .6437 605,01943,950 64 .448 1,147 1 .461 546,41%

11 .726~ol 4 '~.29 232 .03 382,623 11 .081 8,128 3.2N.05o4 1. ':1.14 1,1 :29219 W 01.752 166,905 3,831 4,W 1 .192,911

7:626 .121 2.781,B 11.969 177022 IV 1 11,812 2,253,44333' K. 125 M5 Z~3 3,713 1,071 4224.123721 1 .14823 8fi 39 :226 1'I.'fioIr 1 . 170

11111 71.11 131:~0631 2 1~160 1:146:728,474 1,918.235 135~309 1 82, 1 72

24. 5 4 :173 , 1 :212B06 693 9 62 7

Column contents:~32~ InCtudes FOhns IG40, 1040A, 1040EZ, 104ONR, 1040SS-PR and 1040C .

Shows the mirtorm of 1040ES documents filed . Commissumu's Annual RNom, phof to 1981 Showed the nurntoe, of filesl4i F" '= ~141

(6) rulfird""W's 1120.

112GA, 1120L, 1120M. 1120S, 1120POL, 1120F and 112DH(7) Indudes F 718)

Farm 7~ orms 06 and 706NA

(9) Includes Famis 940. 940PR, 941, 941 PR & SS, 941 E, 942 942PR, 943, WPR Z. SS, CT-1, and 1042

Ibble 6-Continued

ma-I -.- . ggl on. . W ahad-, at ...and .1-1 amea . (

g- P-hl.d b y

Wn 1. dfiftrificts ladficas. 1. samer, 1. ids Mm,%=gfor outtur shares aluna,'bit bonom of labl..)

Empi.,-P1 . ..

ATFralum .

U .1- Supplanum. 1da~. .. at. low ...m .

110) (12)

threat! Stat- must .. .... .. .... ... .... ... ... ... ... .... ... .... ... 487.183 2.141,702 519,917Norm-Affinfli, Ft"Jon .. .. .... .. 62.203 393,869 75, 52.ofin, ... .. .... . . i~~ I ne, "'-*")' * - *'*' ' ".7'. 11.* 1 11A.p.sm .... ............ ....... Z

4 7~ 16 261 6,745) 7,007 3.776Ilareen ...... ...... . ..... ...... .. ... vm.-'~et~j : . :.: 1'7:'

Brooklyn : :., ~ - ~~ --) . . . . . ... . ... 7~4570 67 :38 13.7M

8 '.r. E

~~ W-) . ............ . ........ 9,9. 383M 74~an

2 66,18 rl~ng- .. .. . . ..... . .. . . . . .. mant) ,, ...... . ......... ........... .

29 8,1 U2

Hartford ...... . ......... ... 1,6"

4

.

224S.,nooficul 9,882 43 .5B6Manhattan .. .. ........ 63 7

~NZ'22 2W 114,66A 9,301

ph-h... - , ~ - :: ~ : :~ :2:112 11 :4914 2218

RAW-All-l" R-glon .., Rdr. Island)

6

23 6 9 GIS 2,WS

BlIfilore .17830 30,542 67,590

FOre'rin cprrafi;ns 4~301 55,860 "sort

P,eho R- 750 1.809 368

Other - .... ...... ........ . ........... ..... ..... .......... 1 11 DO, 254

61, 114pmja'~Jo"New. k . ..... ... Je=) . 13,669 08496 17381

I= ') 16,117 74,o9 16 IN

SgI ".) '! 10,235 33 go 12,240aR. h I0'K5 38 420 7,487W,I-nglon ..... . ......... ...........(De aware) 1 gZ3 5 519 1,951seem.sed *g "

.. .... ... .... ... ... .... .. .... ... .... .. . ... .. 36,1,42 213 .30,11 62.0.Atfim. ...... 7,2U 27,821 7.20,1B-m& 4.761 12.711 3934GO.. ......... ... ......... . (S-Ih Cmom 3,757 11.699 4,108Green- . . ... ... . ... .. ........ (No. Carol 8,757 28896 B,072Jac,Oon

~F'1--0`a)P-o) 2.771 8,310 4,232

11 .324 73.621 16,372Who R.1, ..... .. .. ..... 'A, 3.170 8,589 3,068N-wile -- .. '=)a) 6278 W 68 7New 0""

... (L-ans) .. 5Z9D 20:907 8 :026.2Commit Rg'.n .. .... ... ... ... .... ... ... .... ... ... ... .... .. .... .... ... ... ... . 65,707 222,453 65.450C'mormall (Seo fich be::~ . 10,728 36.078 9,716Q..." I IS. (ch he 14,076 58.018 16,58,Dan .,, Mch,,n) ..... ............ .. ...... . . 16'.0 WN8 19,970I.find-.,- 11,856 35.2M 10695Lau'=Iarl "Far, 5~8,13 15 ~Z(Wast Wier 3 7

:W3 4

lifid-R, S64 6o INA-d- 03's" 358,180 104 .6011,........... ..... 2,321 7,295 2,771ch`~ o

w

Gas Z? 0 nes ........... . fifi... -... . ........ .... 17.686 102,261 19.463......... ........ 8,783 42,305 8.7WFargo . . ..... .... ... ~111, Dole) ...... ......... 2:12' 1241.7 2.165H...-- Monomer .... .......... .. 2

.2 7 :1 3,7M.9-kee :.211 1 27955sol,Oman . ...... ...... (M-brOn"al' 14'

10 5

:581St Lo,rs .. .. ............ . (M-n) ........... ............ .......... 12,634 37.694

S, Pa., ~. 12,2052 So 1580

So"'-N -`r~i I.. ......... - ........... 7.5575 29 ~~' 71

~4 909

South,= Region .. ... .... ... ... .... .. .... ... .... .. .... ... ... .... ... .... .. 54.659 9:2626

..qu ns,755 611,25,11M-) ..... ... .. 2,360 61899 2.188~sfin . ",w) 7,925 24 .297 10.2Wc heyDroa:nna . .. .. . ~ :341 3657 1,581

D... ........ ... . ......... Conrad.) ... .... ... ............ ........ , 06 48 :W8 8.655

Houston .. - - 7:157 332421 B.452

owsmome c.ty (so-kIa 12,=) w~_.1 . . ............ . 5060 2 .425

':' 17,. .. .. .. 5

74 1 9 .501 93Free- ........... ........... ........... (An-) fi ISIR I-ake Csy (Ulah) ... . ... .. .. . . 5 N5 13:15 1

. "213

2,37B 1. 1

'W'~Iua -(K.-) 510 .1 564W 23,932 6070

,-,a,,... ... ... ...

n'In 419.679 86,0321 .117 5,571 1.~6Berse da~'~

)U1 079 99. 11 ~816"a' U 10 2 :.,,

"g'

1 18,0 1 1 :112

~%`-.... .. . .... . ...... 1 472

5 '7 7

Los npl.s q 732

'S'Od.mi 11,064 95.307 t0275

Sachemus .' .' :::: :: :::~: ::: :: . ::t ') b 6,239 29.392 7,162~Greg,on)

....... ..... 94N 41.394 15675San Fr- ,.. .. ....... 8,4M 41 .827 9,326San J. ..... : J===~ :. : ::::: : : N8 54,797 12,464Soar . ... .. . ......... (W-mgI .n) - - ........ .. 4 - .... 0:U5 45~199 10 .491

Tonal. to, ... - W.. .,m.

M,BB5 314,40225241 131,93644,461 254,120

q 24,80,1 9409626,352 1084024.ol 105 Ise

Column Content. ;(10) Indudes Forms 990, NOPF, NOT, 990C, 5227 and 4720(11) Includes, Forms 5500. 5500C, 55OGG, 5500K and 550OR~~2) r1JUd. Form: 5DDD 24(AT&F) and 11.

3) ~udesFahn 720,730,2290andlIC .(14) Includes Forms 104OX, 112OX, 26BB 4868 . 7004, 7N5 and 1041 A(15) Includes Forms 941 M . 941 NMI, CT-2 . 990BL. 1042,1120DISC. 112D-AC-DISC, 112OFSC and 8404 .

5'.2 12

2872941,NO26 2972890027,732

113) (14) its)

1 .251 .625 9.793,769 '7'adu l113 .259 1 .310,143 3,12410,936 76 .105 1121016A 39,056 4721,732 223,178 5814 :3477 215 W2 . '~1~40

WS 21344 180 22527 32

11,781146.ew 438

8J% 308810 8457 .232 45,469 913 .022 31,060 145

130,019 1 .197,115 Slon19 .372 186.170 IV

1,468 128,129 7,0873,399 9

1,393 124 7W27,762 374 :6431 '13034,895 188 M8 to27 .935 " IN N23,741 1 a 17 833,046

21, 20013

243.544 i .op.W1

.01,31,432 220:211 17,24XI) 1.2666 38

31:7 85 154

1' " '931M 73,8715 IS o2 1 9U., 51 629. 813 35

23,245 83,312 6i28423 ~31 100264

67 :351N N 1 67

166'"1 903.230 94719,323 140 .709 23532,327 197 .11111 27942337 292 .N6 30237.767 139,522 9724 ON10:007 11

:5" 264 41~

n3,117 973.8,17 1 .3879.137 21,056 43

24,840 281,989 So26677 70 U7 54109N 21,798 2511 .358 45,0433092 130437 18623~699 41:17

931 877 331 4231 :11 144913

111,I to oj

:~3 1.'99,986 1,747 .074 I .bas

am, 61,466 1 a28 3,42 280,042 2866224 24~Uli 4

W399 421 .455208

17 .994 1115,269 N19 .8117 2 7,261 23826651 173,440 85118 :112 117 :41 47

4 54 66 587 1422522 99'" o

179.039 .NB,510 Into4,593 47,110 11

1' :"2U .75,I 14

2 17fi 58,301 122270 3 74

1

6:BW 49:898 06W,i 51

17.936 372,49222.362 144003 W1623.~ 238 U5 17.W6 182855 1 124AM 246,216 11536 .2 219,465 188

95,489 141 5 306 IN44,449 N5 532 EIA&I'tfiis W1,857 1'78451,650 338,590 51'UAW 28D 3 18 262oll"We .10 7M 732

Rlzn->-"C.~--~~Anl-1ZI-1 11~~WEP)x NK, 1 51

Table 7.-Returns riled, examination coverage and results (1986) Table 7.-Continued

I.dhddu.I. . toed

Raturns exaanload

Taa SenleaCY 1085 ,oda; audit- M.

0,629.001) ne.9.3 732 .4M 591650 11090'sud, 1 .10

Toad

N 353 ~ 60M 03 5 2 9 379:9()5~403 6U 'I '1 00426' '4 :'!' X995

w

8,507.1o) 117, :M 112,1126 8,551 238,765 2r8l

R-manded ead"fi-I to, and A~. .. pa . and N--W0 ou" .ne .1 duo-) ea"Ity ""ature

4,201

"

.2S 51 5.677 - .052 I .Oas a52 9 14 Iodl .ldu .I..-1

12o 1 19, 13,933 1 .19 535 ~6 2 67 5523 ~9 1 :31M,

2.385 6w

16~11A~ TTI Und" $10,000MA PI -d., $10,0)0

10 T1" i I TPI $10 000 odo $25,(M -,pl,.

14 TPI S25 " n., $50 (M

3,047 20 .316 5,7. IA76 B 18 TPI SN).~ .. ma,

1 :':9 .021 15.255 10 24,939 in -

2 W~! :12 1~1 1 .1w 15. .224 22

03 4M 81 591,117,6"00 36 14768 1 .120 ~2:314

1N

261 :500 657 1,667 144 2 .4W O'N84~ 1 .127 3 .116 308 5151 1 ~ 194

235,8W 3.'M 2 .478 482 6 : So 2

2.M.000 7 .478 7,476 0 .35

I .M.5110 17 .210 17,2,6 1 .00

2,1147,700 501,388 69 .M 2.25

182JO) 2,407 2,407 1,32

803 .2DO 5.988 5.986 035

368 .500 5 .181 5,481 1.49

4%.900 7,262 72S2 14 6

301 Ow 4.D5,i 4.05e

3868

= Tu Sande, T-1 V. T. S-W. R.= T..Ro~ R-M -dl- -I-

tWto, uWtoM

10e0A. Tin I unnor $1 0Non 1NOA, TPI $10 OW

T 1 $40,000 $25.030, &.pie 21:11 : 1 12, :95 04 8

Tp II 10,0M n., $25 -0.. '0 089 7W 2z:!M 9 1 :'~ ~ '1 132 M 12K~'7.2 1 .26 ;11 3:111, 916 561

23 4M~ NTPI $25,0DO o- M'd 25 308,077 23,1~ MOM9% i ful

70 1

. 0~ M

273 338 16412

27 4 U3 1.097 6.7

TPI S50.00) and me,

Scoed,:: C TGR2 uW,, $25,000Scl,.d. C-TGR $25 " . , SIWSchedd, C-TGR $IDO " and me,

Sc'eout FTG -S25,000~n .dul: F TGR

$ 2.15"u

SChedoe F TGRR W.000

Rd.cla"

P~derahl,a

cen-ion., -1

Aaseo .1 edon .

Unde, S50 000 1

SW.ODO und . $ 1 DOPDO

$ 1 OODDO unou $250.0DO

$250PDO nde, S500.000

$SM ." - $1 "t 205.300 3,868

1

$5 on . U .. $10 . 0

$10 .1 u-, $50 . 0

SSO Mil unde, $100 MU

SIDO da uno~ S250 rnfl

S250 ml and

Foon 112OF

198,700 D'U9 9,349 471

28.400 3.639 3,639 1281

31 .ODD 7.4DO 7,400 23 .87

6,700 3186 3186 47 .55

4,600 3272 3,272 71 .1 3

4,4o) 3434 3434 7805

15,500 358 358 2.3 1

Small Waidem corPodolona 736,900 7,931 7,031 I .w

Fone 1120 DISC

Estate, tolel

Gn- eV.. und ., $I ~1

Gl- -1. $1 m' unde, $5 o, "

Gn- - S5 ml .. me,

Gat

13.3w 1,379 1,379 10.37

801700 16,744 16,784 90.80

613,500 10 .0% 10.11% 159 ,

11 30) 5= 5,2DO 460 2

900 6B8 (WI 76 .

97,700 1 .560 I'M 1.90

1-1 "we and Dftr idial1D6 957," 411279 732456 59.550 1 .203285 1 .1 3

E,c~

~Pwymeoo

windian poem

M~.Iiaovo ..

Sid,doa oi,ned conoctiod s

Net. : Tool. -y -add due

M ounoogr

T. duadoo,Total g - -.=Bah. .. Meet -M.

1,10994 411 .589 ",us 4 .05

27.40,300 35 .327 "'M 311101 0 .1 .

10'soe 2,4412 3.626 610" 57 .110

45

45114 .0n 5",025

0 67 4~1 1,4W W 118 4 &hadull C TGR unde, S25 .0)0

2 1 12 24 .69 2 5~ 1,W1 4 Schecd, -TG2 2006 708 7,N3 1.747 10 17 C $25

.000 undo, SIMI,""WOCTGRS100000-me,

6158 613 254 211 14' 6 :226 1,017 270 232

S~hao . . F TGR untle, S25,0001 1

10, 8 112 26,719 3180 704 12 23F TGR 5." und,, $100 .000wule F-TGR $100 .~ and-

113 0 113 15,116 16 Fkduoa ~

19 pedt-ohip.

10,857 10,857 181.901 IS r~ponatjo- idea l

1 SO 160 66518 15 Assets no -Mad

45 45 7455 24 Undo, $50'"

55 5~ 9,973 25 $50 000 now S 1 DO 000

213 293 40.383 23 $1D) 000 n ., $250,000

51 5, 12,515 20 $250 .000 unuo S500,0DO

4 47 12,249 a $500,000 unon $1 rnil

W7 337 36,037 15 S1 d unod $5 rn.1

153 153 41,968 12 $5 d unno, $10 rn,1

7'71 K113 10 $10 mi unde, S5D mil

'2

72

141,071 7 $50 md undo, $100 ml

we 908 277. 386 5 $1W rd) unde, $250 rn,1

7.7~ 7,754 2.257935 2 $250 ,1 and me ,

1 M 1()q 305,051 35 Foo, 1 1M F

1 .0 140 17,6U 54 B-11 b ..4- -nodded...

29 Fam 1120 DISC

70

1,7M 9 "M I.. I.-I

,

1. Gn- I.. und., $1 ml

22.2 .2 9 GIM eane, $1 A unde, $5 =1

20 M '9978 1 D Gn- -a,. $5 nui no me ,

20 202 100,01, '3 Gift

16211 1421 51 11M1 19 . 21 1,141 112 11 11 -W.I. and g,", 1-1

lEad .

' S 1. 1. IS30 1 311

on 9 us 40"M 2,07 25

16,162 13

W-t

Windfall P .11,

MI-II.Mou.

7M 7116 1.362 S~Io, -d" co'daAlo's

S-ce cante, -hana rwe Cy CIM is not avotaUe . SO- canter exanunations reaufted,n 17 poCent -hange r

I

52

Table 8 .-Returns riled, examination coverage and results (1985 )

Individiati., hind

1NO TPI'undw$10.000NonIO40A Tla-$10.000

TP S25 OCK), simPle"100:3Mander S25.000 . ciamid .

pTPI $25,00. nder, SWM 0

TPI SM.CW

SC .1. C TGR r under, $25 00)Scraam,, C TGR S25,000 ima., S I W CM)I $ 1Scandi, : C: GR Cl and

Scand, a P-TGR ,d,r $25 Me$'schad"

: 11: TGR $25,0M araier SIM 000

Sonedul TGR 00 .0DOand(nn y

FleadWry

P-nnitn,

C.ii,emalems. acn . ,

iiaters, net reconnal

Under SIM."-

SIM .MO ader 51 d

$1 land uncer $10 nit

$Ia .1 Under $100 nyl

$IN nal and -

9=11 buithasses resnocrestionat

Farm, 1120 DISC

Eartaft, -1

Gnais -,a ania,r $1 .1

ain

Gross Me Sl ant near $5 md

Gr-..a S5 ed no annin

morn,daton, and an . asial

lEachis

Empartnaeral

winct.11 areas

SAI.C.1 1Service cancer comactlems,

Namt : Totals may not add d,e to nxinalmli,Total Pcsit,.I-,Total gross receipts.Includes 12,500 Forms 11 2OF net allocated 1 . Corporation clastareBalance Mean assals,.

Astannar Remannes taireseleadd'.R= Tra, Sennilde Total d paracent

CY 19" Rom ... I., darearas

96~4969900 332,574 810,943 In .075 1,26StSO2 1q3 I

02~20806WO BrO29 50.175 15,610 21,53'1 09,980 .000 7 .182 28,455 7.894 4,1

6,874,000 114 .80C) 116,M 11 7ZK3 242 .757 3 M 2 N5 51 1

20 Cod 1~M2 2.249 23 1,36(1 143417 4,2370 3 31lli 542 8

.M 13"W:1 7

4 6000 2.779 519 10,51 0

2,013,000 7,479 36 7

11.115M 21,1535 385 21 .WO 1 .4 2

2.465,800' S8,947 511,947 2.3 9

181 .300 2,820

1 .156,100 10,720

881 .600 15,31 3

192,100 13241 13241

34600 10 .297 10 .297 N 76

7600 65M

653.600 6,317 6,317 0.97

12.600 1,286

$1, 'eal 17,344 1?.-

73,M0 11,7M 11,7M

6'W(l 50,43

500 ~3

26,103,90a 24,823 2.356

1195MI.75 S54.876

7,1146 D.3 9

2 .BXi 1 .56

10,720 093

15,313 1 .74

6556, 8626

1,285

21 .33

1591

5,N3 73 N

M3 10860

"Ism I'sato I'm 2.1 1

103 .3~.WO .7,382 811695 122,075 1,381 .152 1 .~

Sal"500 45,056 162 45.218 8.27

27,171) 0 .1 0

I'm 1,913 3,166 Slon 45.3S

119

- -11? %`!iAhMiM;~RKAr, 5 3

Table 8 .-Continue d

Recommended takfitiomr: tedi and pararldies,S)(in .11- .1 deses

R'= .. T" """"C"dhor -at..Tod, ,

3,610 1 .2. 61 4,91 8

7 9 1171 110 ~2 3 aa, 5612 785P 3262 15.573 99,395 17J11 11 . 37 0 0" 49 a, 7It 109.768 22.

"it ; .7167 81 8 13 ':.125 2 7. 2 1"J=

. :0 4451 062 02 28650 331 19 615 39772~ am 710 345.337 .39!807

376 17 16 TPI'742' 19 15 To Sl'0'.UOtudnaO,'2", M5OM=jr!"'3~959 465 15 16 Tel $25 000 tmmp, SW,00 0

2 .M6 17,13m) '1 .393 9~ 11 21 To $50 000 and me ,.1 :87 .000 11 .011 15,032 1 .0~ 27,097 14 20 1 66 4,01K12

1 . 723 22.BW 2.277 48 :627 55 53 2 242 7 .9M37 :47 15.266 1 .669 179 540 678 91 2 771 18 .WSw", 000 245

12 32 91

125 6 1 632

.5

10*5114 10'sel 179,15 9

162

641

w

N O

69 5

123

"7

1 0

305

269

242 7 249

a628 028

I(K) 10,659

No 25,7N

1,393,556

123 19.1509

737 42,50 6

1Q 13,6811

306 60,54 8

126,736

a 66,729

rinamag. Ca. -it No-chaingedensity ", ninhern pencramt .

R%,X, Tas S.M.. R.=at soon., a.- reatinTre,

tons

10'ase 1,539 496 13 17

N 7" O 0 '

c,a27 .96

l,U6 am2 .323 9095,946 1055

162 57 .5n 16

5,932 24

269 494 .06 7143 143 75,089

1,124

1 3

Scryce Center nd~driangeaate by claw iS not avaIstre, Sawe Center Oxaminstrons resufted in 24 percent no-dhange,

15241 2

13 1412 612 1 8

2 3

16

20

1 0

1

7

2,204 23 7

landiwifiad" total

Won ~NOOA TIP ,do, SIC ."N A~ Plimd"S10000

Sch-le C-TGA nde, $25.WOSchoode C TGR $25 CW and,, S I M,OM

!SChecd, C-TGR $100.000 and a,e,1:~1~43 613 7 7 22

222 ~;2 2FS~hedul, F TGA noor $25,ow1 ScAW.-e -TGAS2500D-d&$l00.MOSen17.381 2.9'NG 99 2 2!5 emleF.TGAII100000andow,

6*0113 2.971 25 FW ..I.ry

ptannentalp.

Connotations, total

~ala -, .-a d

Under $1 M.M o

$100,0M Un., $1 nrl

5 $1 rat -r $10 rml695 67,530 10

9,136 9136$10 ast a., SIM - 1

$100 nit no..,

33 Smatil businanne caniparenonst

22 Fear, 1120 DISC

to ftest'. total

10 Gross -a,. unda, $1 nal

Gross andle $I nst and., $5 rat

Gross orrom $5 mt and ino a

15,219 1,249 61 16.528 U017 1 M9 'N 1 4 17 finciand,estal, and at, . .It12B__jt~ 121 2,045 in

169 1 171E. .I-

Employmen t

Windfall imelft

7 inecalle-t,

SaMce center corrections,

5.14 .~leAifo~IV4---d:..14~flftA-IISE4,,?,v4,4e,,~,-,-.~.,~.1-~m,---P"2"~l~L!z~44~%L,*4~r.4.",7.!,,,'~~3;,!;~,r,~~~~".Z,.~-,~45~~,.,,.,wm4-,'~,~~?4~i:!n~~,,,~~,,i;~~

Table 9.-Additional tax and penalties recommended after examination by class of tax and byinternal revenue region and districts and other areas(in thousands of dollars)

S.,Total heNW-1 Fw ..I. C~ Insists, S Send..,Y lon,

112D DISC

Gin Elclw a'"Ool" M-1..... --. P.11" W-.U.

W,nn.T,t,1 ... ... .... ... .... .. 19.27a.563 5 .816 .962 113,039 10,857,290 139.857 70 .06 202 .035 149,5o 310,S25 142,620 985,333 817M. . kUa`n', ::: ::: :::: ::: :: 3 536,415 10,694 2.947.249 17,795 83.573 2.M 11,454 94,12S 16,236 226

.. .... .... ... .. 1 .980.32 522,344 2a6O 1 .270,164 24.972 1" .503 3,628 17,422 30.060 2,609 2,M

.. .... ... .... .... . 1.763.706 8,60 .585 3,233 729,225 1:1,11 121:111 1710. 2D,M 11,.71 119 2,631"S 865 3 M,329 5 .086 684.727

4 7,. is, 519" 35,747 15.576 4:21, 2,414

... ... ... .... ... 2.623.062 S11,411 71on 1111"

:ne14.935 91,76. 29,7955 17083 15,755

2,440 393

2.76 2

W,Mem 1 :13,1 :."2 814:31.1.1 21,311 1,. as Is,311 . 124.952 132, 11,496 124,711 2 .735 976,264 "1,4. .5 1 :*

N-Atli;~tic Region :.

. 63,111 1,331,331 1,1 100,511 1,431 11,711 18,324 12,171 M 699

AI .W ......... ............. .. 34,519 1 S ne 604 l2el 61 4, :N 38 1667415011 12 6237 - ~30 '60 2 1 2729 5,378 - 31

491S176 I'l .11 172 11, 24 Z I S, 'l N 2T6 24

.. ... .......... 1.. . ...2 2,~

1 - 1,996 194 16,236... ... ............. . 2555 0 44 :33787 498

104296 515 1 N11 " 7270 - 5949 1,528 2,877 462

-16B -

B.A~W,a, .... .. .......... .... ..27 -

427- 67 1

0.aW .,d ........ ... 4 .U9 52 :4 3' '1 6125' 41'21 an 1 :1,1 1 ~ :2777

47 .. 6 ~17 2 -

M.,,ns- SO 199.603 7,427",J, :,oS a 4

P 048: 101 2,442 7g mi 8642 1 .336 228 55,632 71 1,242 30 94

- -NoOtiont. ... 26096 7M 56 16.500 1,561 1 age 17 195 1A.-. Sa~~a cw~W 2 9D6

122906 - - - -

"'onk.- Se, ..C ..., 3,342 3,U2 - - - -

Bass.. ........ .......... 380,287 257 02 20:571 1,321 3219 12,4-8Onana, B2,185 22 :42 - '423:3297 90 777

2.41 5S ; 4

'V' ~SjZ & 11

-5 645 159 .167 780 394 .069 19.156 , 4 0 004N -185 8,055 381 3 123 1,050 -69an w 556 2N . 4 5

P .-gh .,.. ... .. ............ 277,889 3 7 2,1 406 22&67 31 9,152 39 441'19

2,288... . ........... 188, 397 84.970 1 23 58 838 36 11116 1~71 ~,76 1,73g -

92.288 7,221 137 2 2W 1 '1. 7 264 1 .170

Ii., .. ........ .... 3,716 3,716 - - - - - -S-theant, Region'

46~1211 1 : 7.635 Sin 107.125 1 900 20.833 6627 3,525201 1 .3518 418 -37' '0~21 309 13,199 '39 86,t 69 146

...... ... ....... 38.1.1 -a 10 8,601 63 - 2.699G-on 123.528 8.841 440 79 7.696 1,1~8 2.900 2

'57129

. .... ......... ....... 44,3M 2, - 1.619 1 16 IDOJ.-H .. ..... ........... 536,478 356,623 1,521 109,19 ; 39126 53,253 6130 3.667 1959 18368 9 0'

42,899 2" 5" 19 6 629 468 352 6257 298 132,52101 27 167,W771 221 11 all 3458 2,796 2,

1 P 1No. Oal . .. .... .. .......... 374681 ~ 3S, 2~ 2n690 , S572,1 172 a A

2,512 2037 2,5,l9Atise, a S- C-er ... 5415 5415 -=~hts Sel~o CeM11 4,122 4.122 -

Gannet Region :D-nal, 402 .205 0,814 W3 340409 ; :17137 ~go 11~1 612 1:1 all 4 .211On- 29 .966 JZ598 3,592 14

72

J?o 3 952Dat- 479,789 a, 15,90D1 :30 150 329 Ne 7 we2"'

15.670 7,831 t,913.daina 11 4

7:611 58680 414 38,713 72 10407 1 .321 3.1,70 1Z 1 71 83 :16 703 38 35855 5,394

124 M 2

30 .811 18. 2 381 7,617 2.m6 687 8% me 47C'M

7 .292 .292 - -Misfie- Reji6W. 'A 0- ................. 11 .351 7 1 .7n I 1.64B 131 248 176Ch-go ... ............. ... .. 8 691,1 6 4

1'046275:222 4

813

870M Be 36 30,96S 1 .315 2,B33 9,7- 23,440

Des 11 . Is ..... ..... .. .... 171,711 35.M SO 121.267 S 1. 7:498 6~ 5,163 1,424,tag,~2W,i .262 25 6W tg~

2063 367 141 216 ;2

.2,o

MO-k 411:1 14'~9'30 ~2 43S,3% 716 6,28931 226 35731 .24 297

9 301 20'r .. 55

32469 415,4

936 16 WO lag 1 269 847St L.rii 314 62 246 6,B 233.963 926 10 0,

3396M 3,243 1,on 1 . M

S . PaW . .... .. ........ 216,090 41:1 217 261 it 298 19 .911 555 363529 "6 , 7. U7 13

0Stp-ol,.Id .. ... ....... lea. . N T 923'~ 10,769 3.50 2 .MS 465Kansas 01, S .Mc eCoMa~

6,737 6 .73S--- 4Ia~w. *

Alzvq. o.. .. ........ 2,4,956 171 95 5244 a 1,896 231 121 6 4A-,,, ............. ...... 178438 83 : 71 40,072 555 48,145 M9 3,054 1,408

62

61645 M?

C Y. .... ....... 46871 ~2 .571 7 20.357 50 12 056 211 55Claim .2~.Jg 185 296 2,561 22 .127 111,330 3 .5aa 11 163

735 302. 6D-., ., '22.'§13 11114 620 41?4M 1,74S 6 963 3667 932 883

2,- -

H- w.......... .. ...... "age'll"

23 .426 10,159 798,172 2 .172 12 6SI 5132 5~ We 23:432 BW 767 -owiai,on,a Csy 210837 428 190,500 373 144 1 010 205 1 261 ManP- : ::: 10 .

lF,12 6692 69091 99 465 68,199 , T2S. L.k S; :0,7 8,279 14050 811 no

M2 7.52 1

me15 262

VY-1, IN.797 37 , 0 2 264 64285 414 10,260 16 3,9477 78.6ma . .,n S.- C-,, 17A 9. 125 - - - - - 8,72600- So" ",s" 5479 5,479 -

W .- R"'O`Solas 111~61A~hta. 1 55 ~5,978 143"3 13

1M 27 522 71 :' Sal 2572 ill 3

j169 938 7' 737Hondid 471 43,577 56 32 .658 9853 1 . 180

.a 69334 -

L.ag M 1,1-01 . .. ......... .. SM,517 3,10486 135 144 :150 6~671 26 .5C)2 i0l 1,789 2,9873 411L-as Vegas ........ .. ......... - 131,8m 77953 W 1 1

9

Los 4 ~4 ~242 623 5294 467 6~ 64 122

-P., Mg. ........ ........... 1,00,788 83801 "240 462~953 9.000 21 884 882 6.351 5,676 40 .453 4~13I.,,1 .............. ........... 118,176 So 246 467 02

71 6, 3381,248 2.498 1,678 -

S. 18341 69.662 43 .661 35928 M2 8272 196 4.M 1 .102 - -Sa, 619:705 351347 11,899 198054 9010 5!8317 29 Q5 8134 31,403 14 455Sa~ Jose 39 .1% 1 10,395 549 233

:973 ~o 5

Seattie . Me !429 7S 1211 35"102 '557 - 95

F- 6sc- 36 9114.231 760 64 65 34 2BB 043 21,115 148

191 3,9, - -

~i~ 55

Table 1O.-Number of returns examined by class of tax and by internal revenue regions,districts and other areas

".d. anal a .,

Total 11,11,id,tal Pont- Odll~ = onlins,18 Eat-.aip say Gin E., E_P.,._,Y_ .1 .dtI11 MI-1.

I P'... P .M wn-..

Ntnth .Total .. .... .. .... .. - .. . 1,234,7ge 1 .090,949 17 .216 7,478 59 .688 9,310 16,704 1 .860 46 .589 38,431 21,037 20 .519 SAN 43Atlantic . ... .... ... ... . 149,600 1111,411 1,625 1,41 . 9 .179 1,271 2 .649 174 S.- 3,217 2.9 . 2,143 W 2

141,1-Afte.11. . .... ... ... ... ... . Ise"M 126,601 2J50 fiff 7,410 1,131 2 .283 16, 3..14 4.594 2,155 2,S56 0SC:~ :hl It ... .... .. .... ... ... . 209.208 175,070 2 .233 Sea a,235 1,4.5 2,170 416 ..'as 4,516 2.2" ~1,7. 206Mis 11,*:: :::: :::: :: :::: :::: :: : Man 11:.11 l .m7 M 1 ..13 MOI 1,952 218 4.935 3.078 3.595 2,631 240 0.lS4:. ~ "

. 7 l,.2 1,655 9.232 1 .607 2 .577 372 6.204 5,692 3.353 3:1 95 2303:1M 41 20

..S42 3 .706 755 8 .585 1,374 2,244 301 9,170 7.,103 4,034 2271.1 4 .,111 121

W-- 259,334 4,123 1,485 10 .221 1,331 3,001 218 8.597 7,839 3.326 3 a 3~2

N-h-Ati..1. Region:

.g.'.Y 8.928 7~111 42 7~1 11 97 232 16 38147 435 -

A2 3 'S 4

4 0 204 62 31 38 220,912 16:166 172 379 1,611 45 1B- .1 51 997 909

-W, 33 :~244~7 'S &1 3 M 1,9140~6 9

auflaso1 S 14 9 10 - 7~8 139; 2gW 2.143

17aud~,g,,,,03 So 1

7432' 91 259 41 1,134

4- 7

2 .5l7 1,92216 3

2a

2 19 3 141 195 -H.,I.d 15,597 12.5M 2N ifli ,

3

M.,,hats, 11:4113 212 22227 375 26 410 291 8

:~191 12241 497 2535 395 1 056 29 1761 29 96 2P SO

27 44183 26 60 4

18

3P-is. 1 2 . 1 .995 24 33 317 24 49 2 112 736A~d-,~,- C 774 3774 - - - - - - - -Blonk.- !,, ~,, ,

C-i ., 3m8 3,8M - - - - - - - -

29,413 23,490 654 t5i 1 .215 142 379 34 788 398 1 .184) 962 20F,,,,g . 0,..... .... - 1

4

176 - - '7 "' 'J 640 287 ' I Sea241 :45 . . 7~ SW18 2;1 2.22' 355 0 281 975 1 8~4 2

P dtdalo,,,~ 26 005 22,763 426 129 1,227 2N 429 24 3750 429-

P .., 1 1 1 1 4

42 WS 191,2M 228 33

R~Chllg 231~2:11 140 89 w 6

"~2'10 194 234 53 1 .24 266 289 44 663 1 22 13 0g,4 2603 26 23 232 18 64 5 55 68

Phiadephl, S-- ,

reMe'6065 6065 - - - - - - - -

SMt"- RI91.,At- 34.~217 1~ .1~19 116 66 1,116 in 384 125 D2 868 2,284 3 .754

S 13 7 9B 38 Sea 6, 23 11 Sol 26~ - -10470 8979 100 13 42 58 - - 308 589Gns- 21,4N 1 a 26 214 ~5 W3 18A 243 56 8N -

I.- - .. ... . ....... 9.018 7~N 72 38 an55 - -

119,10 87,- a 52,071 44 .574 799 294 2.259 597 966 1;6 1 667 10OW, 6996 113 20 4 11 6

2'1 :34lo 17 .714 222 107 762' lt 262 50 1 3180 3365N. .O,la- 23420 20 .090 229 33 1,124 lw US 42 863 419 77Atin, Se-a Ca- .., 6,499 1 :4"

- -M..Pna sa-a ca-, 6,747 S 147 -G.in.1 Rag an:.._1

. .. ...... ...... ...... 21414 3!11 217, 124, - 3n 37 732 296 3095 2 .01 1~2d .- . .. ....... ... .. 24,962 ;a 856 ~ S 2 5 1419141 221 4 70 492

- - a27, 470 174 all 358 517 30 1 .922 769 44'I 'S~oN23 12 '.741 141 177 . . 274 308 12 117 1 7 37

L-w1le . 9,169 7,482 91 47 521 68 ,41 24 , S3 613 29Pa,kersW,&,,, 5.880 4,

58544 45 523 46 96 15 1 22 391 13

C'no-,C.ria, .... .. ......... .... 4.853 4 .853 - - - - - - - - -

Mine Reia n:A= Ina 2~5 21 31 128

51 734 218 127

" :22 7ci,- 1 41 5 33.478 755 752 2305 406 568 50 010 1 .4M 3.3,~] 3 .3TO i7605 761 72 31 ~4 1,20 136 296 42 125, z

TaF,, 4,874 4 7 156 74" l' .1

123

Hal. .... . .... ..... .. . . 4,78D 3 312

.4 71 24 US 76~ :968 4' , I ISMlwalk 18,757 2n

S2 1 .160

1~169 Z 8 2

7.251 105 0 8Sol 83

40D 31 32 557 260Sl Lo s-.... ........ . . ... .. 18546 14,

`M 211 1 :21 215 11~7 3

N M .. " 1st: P'.1 ..... . ...... 17 722 14 .750 2MTo , 'o

268 n 20 47. 53 51P,,1,fi1C11 ....... ... .. . . 11 ~580 8 a 76 114 1 .1 .2 83 356 130 450 515 25~._

., 1, -c-, 9. le, 9194S h- eegkiwt.

. ............ .. ...4' 2

111 N'211 323 6 217

4' 2 114A.- .. .. ........ .. ... 33,262 2.

1 S 705214 277

2 , , : 20

C .... .... ............ ... . 4 .333 .117 51 1 53 066 l a 'W. 3 9 " 19 " 8 317 73 - 1 2D I as ........... 56.801 43

5 1 '262W 2 .076 287 Sig 4 O~4 2,236 490 15

4" 15:460 399 35

; 1.036 1,035 -

H on M XSE 3..46 1 10 226 867 ma 103

14' .a

30 at 99 158 250 31 " 7" 206OWahma C y 23,177 19.012 159 985 14171 2271 27 1,942P- .-

.7 221

Sal-2 151 18,876 582 0 59o w 557 1079 3 412 .131 11.190 311 14 n4 75 '1 - 226 193 -

W-11a - S 2,643

26 8N 136 275 0 ISM 2,36, 3.A .- S~a &e.la 1~4'9'5 1~':SB'9 - - 3626Ogda, Se- Ca,t.: 7, 9 7mg

Region :6 :229 5407 91 27 321 24 23 4 224 106 2Amho"t" 6

B. .- :72 N to 17 8. ... .. ........... 7,238 '6

226 U 21 341 573

'I 1U11 4' W77 Ill 1,U33'44 1 113 Ill 2Lag" 11 . ... ......... . 14 .111 41 7 J" 350 26 1,033 1,01, 04I V I 1 1 'J.667 , 1 '97 1

02 213 5246 1 43 So -

Los A

:,:,:: ... ........ 0 .457 52,066 1 3 024 124 2 1 6t 3" .7 31 1.1" 2,4 949 1 .287 ;715,787 12.34527' 3

220 29 1.013 In - -28,851 23.987 362 1 8`1 1 .32OW9 013 366 1 . 1,936 76659 - -

So, 15:12 2 .1:1 447 565 1,610 156 me t7 4" 7 715 1,035 1,369 475 16.~ Joan M M

1 54m 107 826 ~37 2"

41624

43 3Seaitte .-- .. .... ..... ... .. 35,8 " a 0 454 181 1,059 22 224 18 egg - I

P- Se,-. C-~,, 4,1'70241772 - - - - - - 757

1,3Z2 9T3

56

Table I] .-Rcturus examined by examination divisions Ibble 14-Civil penalties assessed and abated(dollars in thousands)

1265 19116

InalydalDaedq-rh,

1 ' : Is %s:=16 '9237.M6 279A251 .4!58,746 1 .M,408

L124 I .IN W7., :17502,708

~41:4" 55 :063.74s 292408

Fa,lull11 r,Bad A.

F.. . l .

da,

T-I .. .. . .... ... ... .... ... ... .... ... .... ... . . .... ..

Table 12-Examinations resulting in refunds (excluding claims for refunds )

Nuddlon, .1 -da. A-da -anand"

(,, hroleande, of dollars)

191115 1986 1985 loss

In -W ........ ... .......... 69.695 56,428 157,312 1378766 448

' 00Faluchay - ...... ....... 1,D36':4C

821 4p2 Ps

Ed. 2~'729 &667

On 2 3, 11 2~ 134'

728sN 2.37, 65 ~ 68,84305

711 ,4470 32,1412 lp 122.h. a-

T. .l . .... .. .... ... ... .... .... ... ... 01,713 6111,310 742,526 730 .810

Table 13 .-Results of collection activity(in thousands)

ImplyC;~~Iiatiu* I tio-ri,horndat .,y, ..... .. ........

CI-d -noay

M-1 .1 -areil~~ Be)- ot natural

"linou. ." Indiana fidn"ar"Spal-

Returns ann,laiWate innandfillatIOM Claaard .... ... .... ... .... .... ... ... .... ... .... ... .... .... .... ... ... .... .... ... ... .... .... .

M1~1j,na,e,d, Inhaddilgations closod .. ... ... .... ... .... ... .... ... .... ... .... ... .... ... .... .... .... .. .... .... .... .... ... ... .... .

Offia,, in conalanarrifin nicelved ... ... .... ... ... .... ... .... ... .... ... .... ... ... .... .... ... .... .... .... .. .... .... .... ... ..

Entah-1 .."IV. I-dal I,W ...... ...........

at ley, -W - had parlars

~oinr : Tooea rday - add 0. id-nonig.AdarAted to belyhoe i. -neng daefflyd

It- . . .... ... .... ... ... .... ... ... .... ... ... .... ... ..

Fal MFederal tarl~,-BedFraud

T. ... .... .... ... ... .... .... ... ... ... ....U,ine .

raw . .... ... ... .... ... ... .... .... ... ... .... ... ... ... .E". -d Gift

To'nIl**'*"*"*.. . .. ... ... .... .... .

Bad c~k ..F-d ..........

I. I .. .... .... ... ... .... .. .... .... ... ... .... ... .... ..N .-hord I . ... ... .... ... ... .... .... ... ... .... ... .... ..Toilet, W, Chil peandans .. .... .... ... ... .... ... .... ..

A--. Abefinnent. NO N-Mliat

Wrd~r Ananal N.- . Al-a,l Nuant,,n A-rd

2:578 !599 ~,Ua 22672D,142 985555 i9a 5 7

6.71 055 365.937 ":'1723098 2~753 IS M71 J

:M 151.270 7%221?

,

46i 245,807 11.311

1. 076 52 it

.

133 , Ne 177.7"' 2..81811,620 .122 2 .4112 .290 3n,4117

4336~909 59 5577IM087 M18:44WB M:W78431 S 3W 899 183.1 5,1

3.627 921 '

60326.20 23

3. 5 8 28,898 20513 "1 138.037 4,943

sw". I , 507,092 '.4"

1 .114376 70,092 WsW3s222 1 :2

2:222714

5,181,985 We IN 1 .~ 539M 776 620 i6o 356 231W:4M 2:948 1 :870

6557 1 85041

1

M17 1

a .917,512 135 2,218,946

117~41~ 15100DO 76,'2 2'29 :481 27

A 724

440,2114 M

:2o726 189 45.731 7 .910

4 Us 86 io)1~594

5. 637 22~

288 'W39211,1123 249.513 2N.23 1

9,225 53 .179 4,4636 254 1 1

16 967 36 66', 13,18533 66 5730 87 845

26.673 thJ3770 17.725

1 3,1. :20237 311 ~411 133542 Us

2,128 36 i's

98 4 w2

10 ;48 M 185341 6875IN

. -NO 407 182,870

IN, I 1 1 2111:1. 20 .27 122,913's" 6,928,265 4,331 .979

146 .0 2,139 406 OOCI5N 098 A2 521 .585 391 .457~ .525 5 .1312,118 311 :412407 224,585 2 u s

23210 11 .055 125,05046,565 211 .063 199,24257 96,

51 223 4W 109.148

jsi~ 326

e89,932 10,242 , 655 11,392,3M

423 7~ 1"~71179~28,i

272,880 NB273,308 248741 110 T

31 3,5086

3 , 58 6w 22."'2,376 337 522

37 9~ :.72'20.022 U5,085 67.070

NoOd Ynth the enotarch of aranyated w . peradlim can apply to dry tax year Abaternedis wn appdy W any w year11-1- widener dehI hadon' lal- 1 -0 IpaW.dee F.- 1120.990C and 90T

3 jrCl one Fo 940 . 941, 942, 943 and CT-1.Me low achroare Forms 1041A, 522T 99OPF, 990 . 4720, 4638, 2M 11 . 11C, 720 and 730 .

Induclair negligence add idwallan-a

1.9~ 1.692 nduderr 10-1 10,11~ 1011 11d,nd,lidull ratherdent -M I,,.

2 6P Lrdud. ponallan, unoor the TU Equrty and Focal Reirld-bitit, Ad of 1982 and the th, Rejohn Ah a 19a4,2.4" 2.41 92 .713 than $500 .

169 "9MS914 062 $11,921,808

618 ,Uo1,396

466 1W1 .04D 909

III 2a

121 117

5 6

"0' "M1,418 61 125 22

260691 1 978 5,13 502,4ai1 737 3978

1 86:043 3.95B 232 13485

9D 753444

111 4, :47~7~1 621~546

42285574? 508

162 4 7Ow'7" 6,698,525 075 . W7

M380 WO,9522' 2'41 8W 1 s'673

22:388s2~ 1

N ON 7,3DO30,934 1 8 279 14.797

12 83774

2,21. 373 536

74 257 weIns'"a 71

4,692us

52,925 4 .762 2548 56 247

35,167 3,7n "~ii742 282 24194 22

6"9 1281111.50 2.825

196872 114~21 164 .6208 : 1 so at "t 4N8

13 ZO10

21

-2

10

1 .74

3.185 .617 1 .4 .1 (276)31110,791111 105,932 169.691

SO.370 85.$Q 217.2083,4113,0811 115 .6411,6711 3,513,1"

58

Table 15-Appeals Division Workload Not Before the Tax Court (Nondocketed )

ad .. .... .. .... .... ... ... .... .... ... ... .... .... ... ... .... .... .... ....

S. ... . .........

Disp-d Of by Agm,nent .... ... ... .... .... ... .... ... .... .... ... ..

'n'.1 ..' - ......... .. .RShOters . - - - - -- - -

cb'~ Of " U..giaas, . ... ... .... ... .... ... .... .... ... .... .... ... .... .... .. .... .... ...

kiiiebarl Of C--'

12115 1966

42,450 52.390

21 211 Z83816.2 , , 22552

33.4~ ~Mo

22 BA 237171 WS 1 0,913

3,000 2 .41 3

8482,20

2 .152 , 67

1,ca" ... .... _,.-a -, h c--.n .-Wade,uaa that Ty 00 co-ser .1 ohd disposed .1 togetherC_ dosc~ C. h datr~ a-y"=0

by "Ma'sa,. , udo, acOu. tjW,e-n inventory .

-rety shitUng r- horcockatecl to doctoredaust- Hw-a, such casat moored unagread for purooeas of computing the nohdxkated

Aphettis" .ag'serhare.to of B5 4 percarti -h-d ~, the socson o n

Table 16-Appeals Division Workload Petitioned to the Tax Court (Docketed )

Number Of Carats'

1995 ION

33.9n 3B 130

U "N'; '12 1 W

DiWaad of by All,aartra t ... ... .... ... .... ... .... ... .... .... .... .... .. .... .... .. .... .... 23,300 25,W

a 17 .922R.gulsr Work .... .. ............ - INW2 8,019

Sher- ........ .........3,566 4~026

3,25 12.711 77 5

s a U;A~reprmntstaxMversgrwpedtOgMhebyWWI~~lh-~O~ .r,d.twl~MUMt.hral,MayMcDn"M'ed'M d ,sp=dcgtogghel.

C~~ketedinthcTwCmd,nrmp~toamg~otdelciemy=,~.,_a . ths, ah"Oh-uahh, the . or -.f.d try Couned are

hca,dod H- they are excludad,n - .~nfj the 89.7 M,caht doccus "

an he . th ao'n ~hesachort cr~ Ad-91.1- Appeals'

hOcauso hey e,are sh,cady sc-dead as unagreac, for Pu,MWS Of cw tng the nchc1ockeled agrea,harl ate,P-are lcu~ao .hs . ... ... - ...... . . . . .... . ........... .None-pt chrusable tructs .. . - . - - - _

~hor, aghc0ture, horoCull,re . . . .... ....

4,733

1

,

1.913'j :'31

2,3052,11146252, F.1-a

Total . ... .... .... ... ... .... .... ... ... .... .... .. .... ... ... .... ... .... ... ... .... .. .... .... ... I .. .... ... .... ... ... .... .... .. ..i. .... .. .... .... ... ... .... ... .... .. .... .... .. .... .. 21 .93 7

Table 1 7-Requests for EP/EO tax rulings and technical advice (Closings )

s,ubf..

Total .... .... ... ... .... ... .... ... .... ... .... ... ... .... ... .... ... .... ... ... .... ... ... .... ... .... ... .... ... .... ... ..

Stock P'MOIIVlocrui. h-

Table 18-Determination letters issued on ERISA employee benefit plans

L-bOumed

. .10.1 KIWI-MILI .......... ... 7--P,M,C,pm"g sh,pi'Yeas

A-W...W:

T-1-11-

TMI hire . 1 . far I., lashitisal.. h .iltrig. ast.1c.

9 .857 9,237. ..

':112

3 U4'if, 3

19B3 .7 .0 3 .41`9 21 9

ESOPTotal

-defin"

.09

454 11 .065 480 28895 172 4318 .~5 289,~ log5l 2.082.328 82 .1153 2,M4 11 14

6312

o So

1'w 56,6920

5

250

1,M2 114.825 436 175 197o 7 o 1 2

5,571 105 7,~a 0 1 2

' The ter-abon row-ii systert, coast hot d,stingush befe,ech stock tonus ald ESOP purns

13,31420

W'..ba-fit T-1

'1 :.'7'7' '2 :'7.111a 96866 ",6

79,72310 2!A .92022

9 .987 23,3015 25

1*11!Mla .1 41

Table 19-Number of exempt organizations returns examined by type

501(cX3)

50

M01 T1P ,

-7

60i'l-nPUM,

M

Table 20.-Number of active entities on exempt organizations master rile

INS

24sabdon 501(c):

36 0 17 ~7

..... ... ........ .. ............. .....g-4- argima

7502

W 435. . ba ........ .

1 'M(SI 'rS.`,=,Z'fiouhy foo,ainsnorreetic tugernel he

92,~

24411 21~ 1a7: '113 1

3

41'C~', 6 3215 Mutual i-IS,.. Com do .. ...........

. 967

167 726Su I lal maO lb~hei~~ ",.a ....... .... .. . ............... ....'0;~'letni"'Ce Crob,;%'i'f'o1'

2:3 062181 E ."by . t... --on Ill, are ... ........... ...3

4a= ... .... ............. . ... ..... 167

(21) BuCk I.be nuide ..... ............ ... .. .... .. ..... ............ .. ...... 15

1 . 02Id 1%, S. d=,,11II,511,So fii~ =g

2.5402. . .... . .... ...

W52Mr

a

Fare c:e a.tte* .... ... .... .. 233

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

Total .. .... ... ... . .. ... ... .... ... ... .... .... ... .... ... .... ... ... .... .... ... .... ... .... ... ..

100

1089230

0

0

0A

wh6areah, .h S Chuhhuar, integratedAll SW, .n 501g,X3) organdabome are notuicludei baysurs, Certain orgarazaams, au fahboombut thre and

Connerhare, or Saaaahathorni of Chu,choe. need not apply for reMphreor, of exemption un an they dMe a rulin g

Table 21-Dispostal of exempt organizations application s

501(c):

12) Cortiouvionii orgal roar

d, artSoo ",h r

Labor, agn-hure wlian~dmnaBuemei I. .gu'other and ne,"

whoi &i~N

Fhafirun~ berefille, p??AO,!! ..... .. .....

::'!JP CZTnorr7'. .15 Mutual analuenc. cornpanim,

S " "a " " "' b"67~l e Empbyw h,hon. fo,ma~on I I . . ..........

ad InPI

,4

an, diiiimann .

larne fil

l

P-'~It .

Total .. .... .. .... ... .... ... ... .... ... ... .... ... ... ... .... .... ... ... .... .... ... ... ..

Appiliatiefilum, lot determination

Appir-ad Denied

.11 4.1a2:749

5002.129

.546

4'"

237a

17134

61414to90

11182

4

30~

71615

43.007

Andahition wtharawn by favoyer and failure M unryon howled inbirmiti

Odyfir, Total

5,1 1 962,25 23860 19 162

76 54179

10201

65428

74174

09353

0 1

3a

02

987

INS

215 .,q

3S3 05,

, "~"`M.236

58.62595M107761 7,93

53927 .1fiel6068

111.712

324,71619,

11Id,J u

9,4532 .133

288

7

2,7462.490an

113

026941 '1

25

220

n4 1

433 i'

16 .3un 60'as,

61

Table 22-Internal revenue cOllectioniii, costs. emP]()vces and U-S- Population

Fl.-I ... . OloonfifCalat

cand .Celleftlifians Collect,

$IN

A-9 ralab,ad

-ph. NationalO"ICS,

(1) (2) (3) 1') (5)

S3377."M':71184 09 79

:97

195a 7

438 171 :984 166 1670 1 :49176: 2355,469,22e 0 T4 882

4,73

79,797,972 see 044 177,630 3

red

44873

30,735359 91,714,802,821 0 io 1 SO 67 1196, 413,295,2384

. ..... ..... . 4W:1so :S20.401 086,398 044

507 .96450 We 29 186,583t 5 3133 1019

045

~S. 1 4!iOC JOS 25,S, :2

&t9 692,131 112,260,257,115047 189242 09,74049 191,889 58503

861 :9~ 128s,,,, 03 7422,597 .38747, 4 79 961:3 -S2 ne,= 588,

6667 :01 148,374,814,552 448196- 6~ 6981

2' 00 5 198 .712 74668

2 160 :7RINM75 l"' 046 200,70 671. 17..19M19,5M597~48 0.40 202,677 S6548

12

7 . 9

886 111 1 712 096 4 1 1 41 2N 6 8:.:. ~ %1 , 6a . 955,311971 7:.

........... 981 7:"e:

i27 1 1 207,OM 925,ier i 62=14S 2

17.237 :4.71 :

.1 ou 208 801g 21 ,J~e.j '30 11So 04, 2 4 O`u` 01974 1 d

1 :2 83

.312,894 661 26B .952 .253sW 0

1171 6997 as 3 1,:72, 77,1 of 67:~i, :4,.6 : 3 :,224

7S, :.22 0~213.559 1 .375o2,, S 056 215.142 1,40B-

1 :7.1,:5 7831'N8 33M 1.7769:34 B16 730

tri) 7: 9913 050 2,7,329 1

1979__. . .. .... ......... 9:3622,116.166,2761 1~ 0, 04469 219033 , ~ .U2.7 S'j

460,412, 3 220.999 2 .OK 32

2,2BO W88 :712.2 ; 516 24 :7 '. 2~21 1 2~.27,,gai, 2461.16

.1~371:273 :.&,

99

.41 2 0~231 ~ 2 1 Is

4626,M1I19.3 .... ....... . . ......

2 632,240,505 .Sg5 042 232 .61Se', . ........ .... .. ......... . ..... 96 ~52 8,1 ~ 627.246.792,581

3:2789 W75490 0479,2 ' 2:~7 el 63 9.2 ~

5 680.475.229,~53 22048 237 .

4542 2A65 71 2

9 253:100 :952 050 ,:113, 74 871:~ on , :1 ~141 1-99,eK .2. 1312,225 049 22,31

8 3.233 94

Fitil d

(6) (7)

22 :12W 4,:13251

-1"' 4S, 22~1 , 909 1079 9 S257

51 U7 2 . 05~6~8 3 .9'

2 48 137M16',I

59 ,3~401 53,080

61059 3657563.

839 o5i,

57220

62.098 3881 58217M W 3982 59.52665=6 3,89,1 62.05267:574 3,967 M.60766

06`1 3,862 62 M2

66683 4,103 6', !58068:97 4,3!56 K614685429 4,1~ .41514:17 4 :a

921 4 310

74,611

V 339 4,53, 77,808U.2U 4 .732 79,532'.3,:~74.1 4~~1944 1~

80,41086.10 4 .978 81,190

ag "S 5 4 aB7~4. S, 50N6

s~2 ~85 7 , 5:09 77.75943571 79,2401

87635, 5.3271 82,300 1

92 25,f 5:34~ S6,,d95 Sea 5 6t Do.519

I This figure lophearts =ual IRS emblem, Coate from firibal War 1975 -1u,y ePerformed While the bloblating Co. flgur.S for faical yeaM prior to 1975 maym abrh~~l

"'imounion"'I ef receiyed fron, other agimatiffe for harycle ,

M alle, the= figulde in Column 3 - mol-Ofie amillaterm,l In- -nll are-.1 amb do

%t,p-O',',nh'2,rTSy-Sgm P-1101S iniad in 1972, 1973 and 1974 .

-1972 adjusted by 3,9W-P-11- -lutdod in

" 74rage bearers, to ri the AT&F thandifer-jul, 1972 AT&F holudeci 11 MIS 1956-71 .Eleven avrearge be,,tions turbanned 10 OffWt the SaChathifyrn 1965. Twenty frydrage Pood'One, tharalfarred 10 OffifiCe of the SoCuiterym 19M

trfi~ I ad InPOPUblon and to, Par Caere figur. ft- In ra-el to agree wrh t a Came Bu_ ., adjUated data on Copulaboh .Methodology 1. Count byes, , _ _ I *ay Sdjodad 1984 no Conform to offit. of Prefternal Management barrui,aws 19113 aVorage

Mail- Mallead aJw are Sdjult.d far Corimpardolifty.

Table 23-Costs incurred bv the Internal Revenue Service by activity(in thousands of d .]1 .,s)

Appropriation by -j,dy T-1 P---l Cerapa -i.nsyd samiltan,

i-widw. I-.-Si

Otne,

INS

!"d ren"b"nothernhe 3.617,375

a. latitio.. .Sallet :: ... .... ... ... ... .... .... .. .... ... ... ... .. 1",955098Maim,. ...t 96 857

a .Fir"Nal. 1

Total . !.

Reauhhe . ... .... ... ... .... ... ... .... ... .... ...

C- .,e,.-. awari - boobu.

I,. n o. . . .. .. ..... ..

Eartiminatfie" me in,"anUnit

Exarhm~fi ;~*~ :.*',~ ::.--.~:: .. ... .... ... ... .... ... ... .... ... .... .. .... ... ...AppSelfi, and IS,

... ..... . .. ... ........ .aEmploy.dian.

Im,'mir!n cal'affifien, am MP',

Ta~ firahdr~ ... ... .... ... ... .... ... ... .... ... ..

COIIWI,n ..... ............ .fiag

=an,: ~ :::::

finflaribunififiall eltifigodiona, hon, .. .... ... ... .... .. .... .... ... ... ... .

logs 1905 lees INS lose

2 366 2:759 ISO2 S3,8",gN 2,6 offit-ofin "107'"s3 U IoU (1 746.919 81 .368 l.M5,065

89,475 70,1% 67,351 26 22,124

828387 72' :5'7'1401 234

3 619,12 25525 1.229

20 afirs

1 .048 .469 1,247,"3 5911,1122 "5.459 457:7U3 88 aa ~822 7 917:9135 ~13.771 595,992 2267 2 21

225972 29 498 57.151 109,457 168,821 32,~l220,o3i

1 :376,5061 1,133,137 1-149 .924 243,359 251,247oul,14645 139,501 915114 1 27~. . ,i67 263 '33~~1.1 1,,,Ol X,, a

39B Sig 0319 713:659 33162:63 139 1U

B2,.2 18,26ul

1,0791,9052 1 F2 1 .103.055 It 824,1115 253,693 2n,670

E!3:.,' 221 .- 172,121 4~23

119 7

1,411 4M.-".6 3 409:484~

20:0

e7 :.6704 '8212 1N .207 130MI 6e6G7 70,2116 ml 56 .7off Mead 10g70 11 .951

16,423 24.9n 11 .782 12,261 4.", 12,66,

W, 2NIXKTFSVR_-2,e

-~'VX2.'N%62 1~ 7 ~!k '-- I

Table 24 .-Costs incurred by the Internal Revenue Service by office

(in thousands of dollars)

1,1-1 twenue off~. dWrilt .1 r.91o,P.-"-,Too,1 -P I", T.-I

A 7. .1 W.- R-.-. S.,,i. . ... .... ... .... ... ... .... .... ... .... .... ... ..... ... ..N~bola Offee ... .......... ..... .... .. .......... .... ... - ........... . ..... -Norh Atl- . ... - ......... ... ........... .. ................ ......... .-Al.- . . ............... ............ ........... . ..

: : : 'S .,. ~ -.1 1 1 .... . ....... . ....C-I ......... ....... .. ............ ........ .... ... ... ::: .. ........ .... ... . ...0. .. . . . ...... ........ . ... ... . .... ........... ... q : ...... ..... ..

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

rooor~o. .. ..... . ... ........C-41 C-1 .... .. ....... ..... .. .ins t,

. Cerro . ...... .. .. ............ ....... ..... ...... ... .... ........ .

tort_M) I "'Wirtg dl.rill d-1--ot~ wROF~ioml. -.1-1 ... .... ... .... ...

C. DWWW . ... .... .... ....

North AIMMJI ... ... .... ... ... .... .... ... ... .. . . .. ..

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

M~A .I..fl. . .... ... .... ... .... ... ... .... ... .... ... .... ... .... ... .... ... .... ... .. -

S~m. .. .... .... .. .... .... .. .... .... ... ... .... .... ... ... ... ... ... ... .... I... ... .... .... ...A0 It . ...... ........... - - .......... ............. ..... ........ ....

. ........ ..a.. .. . . ........ ............. ............ .. ..

.... ............ ... ........... . ....... ........... .:::::

V..... .... .......... . ... .............. .. ..

L.1' R"N..-,,N- 0,16. ....... ..... ..... .. ...... ...... ............ ...So,,,-A or-t ......... ...At-

. S- ~=*'. C- ; ;M-... .. .. .. ... ...

C .,rn., ... ........ ............. I.. .............:- '*'*"*. .... .. .... .... .. ... . * .. .... ... . :7 .:C , rd ..... . . .. ....... .............. ............ ............ ................ ... ..... ....Dot' ." .. .. ...... . ..... ...... . ... ............Ir- . ......... ... ..... .. ............ ..Lm- le . .

...... ............... ......... . ... ...P=zIC al ........... . ..........C-1, Cente. ........... .............. ... ........ .. ..... -

MM.. .... ... ... .... .... .. .... ... .... ... .... ... .... .. .... .... .... .. .... .. ... ... ... ..... ... ..7 .It. ,,,

M,I.a,km ....

Fo-s D I-. . C-1M- Rewon cent,woo -

Con,

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

"9 921 .5983,866 .NS 2,759,10 " OD 384.653686:~6

2N~N9 " :544 IN I,

462717 3M 119 7,736 67W 90 .15331:11 is 27, 11 1!2221~1 1:111 11 :~1123 '~,5754

152

'3 s 7ss 7~ M

280.9n 222 ~S 8076 4 .263 45,9"318682 257405 8477 4,46~ 48 n6

'21 !4'~31 4 sl sl:7.4 4 2 .8 11,021 87 .322

S2,S

2 ~4 831 9,265 97,46086 .376 W.936 1 824

0 6"U .674 56M9 1.. 1 3" 2,151

35 :~17' 31~~156 ~ 21 1 :1,t3 1 .695N '7 w 1 1' 121 21SO 166 W6 M 123:7

.

295,959 71 .331 12J. 11,420 201,M19.967 7' 1 7 Aw

: 1 1 2B.3204. '450 W.211 79" 1143,315 9.299 3562 9 6 29,51831 397 8 4M 1 079 1 , 919

IN13 1

33 :780 9225 1 28,t 819 22 5251 820

1045,t 1 6,t5 3996 35.725

76,682 13,703 3594 1,U7 57.M8

2.6n,149 2,214,013 SO .M 42,N9 M6 .M2

I I 12~ I~47"3 20 348,M 61950 1,127 12~961 9,810 426 W5

': 26 4,971 253 55 W

48279 37 . 7 1 081 917 9,194'1 392 41 974 868 647

7I

21:11 1'1 :~2 911 1 .010 35 4 :903, " 5 Is, 33

W25.6D7 21,400 681 200 3 .31616 5 11.3m6~2171 7~3 6110 1 .1 N2S

N~2 117 728

7,2155 5 .768 201 75 1,171

'N a 21

74.956 K757 26 1,150 18,78,t93,422 68, 55 205 1 :3 0 22,884

310, 61 26610" 6 .03 . 83 30,9424386 3. 3W 6m 54 3,27324~6556 19,857 1 .729 725 2 N557~1 52,567 1 .219

4273082

4S

240 41.329 175 922 3 .11423 '7'

20 4"

5S, . 1

4'27 :111 23.1M 902 619 2~~50

S147 4651 It? 148 231

3,762 2,476 2 190 1 .0722m

0 M6 041

79681 63.028 1B6 2 .(A1~

. 827414,230 US, 53 9 .M2 " 853 49, 62WWS 43~735 1,56782 1 .168 6 97M15.378 13 665 6 2'6 0'

11 :341 2 758

2S .1'5 44:7S 928 M' 1,4~10.608 9315 380

2"66975 2,553 2 3N ~.(n61 1 ~0102 9 .763 4B9 255 596%41 142 3, 15 12 :133 911 "624 W7 935 1477 0 4

35 042

78.672 63,123 196 I'l - j&2271 .505 59 .M7 '68 1,655

249, 23 214,2W I .N7 2,w 25,%~ W02 913 323 2 .99'2Z37~41 33,MI 1,052 375 2,91551 1 19

4'5&` 2 .3w 424 371 7S'S

2S.

470 a 5M 3~023

16.323 14,140 7M 112 1 .3139.162 8.100 "D 60 5~3 3 0m 0 274 0 59

68 618 56,123 19 820 11,4762",902 240,180

7.193 3,US 2S."

M5 3 422 229 49 1957s 1 14 72 7' 1 .1 67 4 ..114,1

3612144 523 293 9 6

4288 3,74' '31 58 2515300 4,112 26 49 27422,755 20,285 615 233 1,6229,721 8470 359 106 786

~ .100 30.005 1 11 1 226,811 23,690 27'13,149 11 ~759 5N 1 41 71

4381 17 21 4 29

370 0 W 012

70517 57052 246 1 .46011,759

63

Table 24.-Continued(in thousands of dollars)

i-M mwn- orlice, dooict or mg1oo

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

.... . .. ....... .. . --. .. . .......... . ..... ........ . imrt~ ~ ...... . .. . ... . .. . .......

--.- 1 -.1 .1... ........... ... ........ . . . . ... . ..........

Hw- . . ... ... . . ... . . ... ...... ... .......

S.11 t,' C" .......... ....... .... ......... .. .. ... ... ... .. . .......

. . ..... .... . . .... i.

A-1 S-e C-11- ... ... .. ..... ...... ......... . ... . . ... ....0'- F-'. Crr,. . . ... . . .. ... ... .. ...... ..... .... ....... ....

W.. ... ... .... ... .... .. .... .... ... ... ... .... .... .. .... .... .. .... ... .... ... .... ..!Mrwago

P.ftrd .. ............ ....

sooIf . ~ ...... .. ............ ........... .... .....Ww- Rego-Ir,1-

Equt'Tolml 7-1.. .t O~r

(1) (2) (3) (4)

475,11S 405,290 11,20 7,025 SIA973957 '1'

12 129 :55,t 2'

N 1.3132 40'2 1.80

4,654) 3,858 405 40 N 7g. I.~s :,2, s, 4,5 1,ss s .975 a as M6 346553 41111 11 ; 412124:1 ..

2 124 ~ :412:

0844 20

1

'78 US 1.726

.0 354 14 41 ;14.759 13 ~18 593 6, 6873 a 67, 0 65681 566 to 4 2

im ill go 758 352 1,418 15,6409.,45 74 .6W 386 IJ14 14,402

~.816 386.239 11,237 , 18 39 .62210425 8565 N4

173 7,3

6211 5,457 324 131 n98.418 7,499 278 10 47357.165 SO .W

21: N9 930 3,542

M .152 73 .B74 814 1 .219 7,2451754Z 15 .099 628 410 1426

12:402 10 U2 219 837

25-

n8M 7w 366 1~~2149,M

42 721 8 764S

32, 289 28:777 1 . 3r4 560 1. 675:38

32,821 28695 938 6472475 0 433 0 .54521108

253 91,218 419 2,141 14,47 5

NW: R-WI-M IS ~IdWod 11 thS b.,,S bq.-

a % , "'5e r O-zn-~-e

64

Table 25-Personnel summary

Location add IYM

Sannd total . .... .... ... ... .... .... ... ... .... .... ... ... .... .... ... ... .... ... ... .... .... ... .. . ............ ............ ............... ..... ......

Tenh-Vactereal Out .. .. .... ... ... .... .... ... ... .... .... ...0"1 1 officas I .. ... ... .... .... ... ...

.... . :: ::: ... .... .... ... ... . . ... ... .... .... .... ... .at, P,raceattint; oaarationa . ... ... .... ..... .... .. ...~Ilastlah MO

Re'a-Chh,-.- .... ....... .. ... .............. .....

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

Th .T."----t.. .....

E.-thatio. .. .... .. ... .... ... .... ... .... ... .... ... .... ... .... ... ...R. h. .'.. ~... ............. ............... ....

.... ......To . ii .dhl- ~ .......... . ........ . . . ........... ....

'I ."" "W"iM" P`*'W' .. ... ... .... .... ... ... .... .... .. .... .... ... ... ..E D t

Apdasid. . ... .... .... ... ... .... ... .... ... .... ... .... ... .... ... .... ... ... .... ... ... .... .... ... ... ..

T.. f-d .. .... ... .... ... ... .... .... ... ... .... .... .. .... .... .... .. .... .... .. .... .... ... ... .... ..

at cleas of Y:"

1985 "Re 94, an

02,792 116395 96 .705 1072,M8 9

312 932:U i 92,6N 9 .579'A 4 .076 4627'4TO 5.70 5,663

1.367,249

N NO I,,:25,n3 3.:2" 29 : .7915,412 15,57N 15,119 15,874

7386 7,2477

a7 : 18026 8.3t!~ 7:375 515

4 .26 5,324 . 4.610 6,89217

1, 7121 1,60 1 701

2W,i a alt 1,211 1663

1 G 2.815 am,

24,798 26,121) 24,433 27. 9713. 57 13,619 13M 14,5073 312 3,4097:372". 'Mna 7239

1922 20, 1,914 2,2601

~251 1 .320 1~618 Mil 594 1,026

2,2 3 2.220 2,212 2' .3aG~O "052 1.05(1 "'at,177 17a 177 1781 .

003 979 1.0116

4, n 4.122 4,394 4,2702' :~123 2'M 2 .860 2,752

'2;' 1,53", 1's,a

E.-W . direction .. .... ... .... ... .... ... .... ... ... .... .... .. .... ... ... .... .... ... .... ... ..Ifteargesee . -1 care ... ... .... ... .... ... .... ... ... .... .... .. .... ... ...Re in ... ... .... .... ... ... ... ..... .... ... .... ... ....C.= . . .. .... .... ... .... ... .... ... ... .... .... .. .... ... ... .... .... ... .... ... ..ccannall . . . .... ... .... ... ... .... .... ... ... .... .... .. .... .Inapectio . . .... ... .... ... ... .... .... ... ... .... .... .. .... . .

Note: RarnWraments isawwouded in the abo,,o hgor-inchudes Nab" CMpWer Cancer and the Data Carter.Centralaed Sri— staffing absorbed by :ta chant funchond duong FY 1986

126 124 125 1162 :176 2:11i 2560 2550

'04 4 :wa ; 3.6211 443

2,45a 2,382 2.485 2,479952072 9110

r

Table 26.-Chief Counsel cases receive d

T. ca. . Isees ,

S-11 Other,than

... .... ... ... .... ... .... .. .... .... ... ... 20'D25

... .... ... ... .... ... ... ... .... .... ... ... 22 14036

27:119 84 .. ... .... .... ... ... .... ... .... ... ... .... ... ... 12,263 670, 11, 1~4 :1 U 25B. ... 587 U:~

T-1

Gthrithiel Rahchallegal fifigratch .

-1ces .

W739 3 UG 9211~2:~111 367 Na 33 33 9M491 472 4. Pi 234878 5. 126

Accando ricabstics are net nurntaers, i.e.. astual mmIder of cases received phis or nnm tonstars and adjustments to prior years racepts

~)A65

Tabk 27-Chief Counsel receipt and disposal of cases

Omelet, Tdae . .10.1 1 Ifta

Daclas",

POSide. 3

135 21, 218 128I U 23 185

30 n121 46 101 6679 3" 72 41

397 21'2 6

29 2921 24 34 11"1 13'06 24166 22163 06

Dl.,-. litigation

-E;=PI'I-0,ilearktation .

General lidglific .

woeq,hathel'.

3 1';n..Y Act 'co- 6

'acy Act Pre.,. ...... . . . ... .. ...... ............ . 3Total ... ... ... .... ... .... ... ... ... ... .... ... .... ... .... .... ... ... 91 .

R-Wed view-

909 "13' 3N

1 21. 7 21 .690 1 .675

10 ~5530 4h

a1 3

19 aa31 2 230 34 141 5

781 51 12 1111 2a - -

Total . ... .... ... .. ... .... ... .... ... ... .... ... .... ... .... ... .. 112 174 183

.2

16 3

...8,401 lo'N' 9 .M6 9,8361m 108 124 137360 2. 37 1Tu 'Sp'"~hni;h JM 4,473 1,8972a,i 1 nS"-'.'-US ... . ._.'t :q 1,997 1.93" 1,910 2.02~ToFo ;egn dw.MONS nci-

1prornnnn, . 3h 3"D' wS-10's nt,rc eq, ..... . .. .... 6,395 8 .38" 9.Dt4 5,765"'

. FOIA & phnacy ra ...... ... .. ............. ..... 1 568 627 100A=--yop- . ............ ........ . - ......... .. "159Total . all region . . .... .... ... ... ... .... ... ... ... .... ... ... .21,091.National Mice:AP.W. .. .. ....... - .. ..... . .... ... ...... 548

=ntrht~vaa cimh~- TTotal National Mice ... ... ... .... _ ... .... .... ... ... .... 73 ;Total: 11 regions kkationel Office. .. .... ... ... 2la3 l

Total .... ... ... .... ... .... ... ... ... .. ... .... ... .... . 66

32,517 32,218-21,493

382 372 5584N 410 1.41

.1 1 7919 7 033,419 33 .009 22,241

127 89,an r.,,n,, 65 63Tec".1 11-1

4 1China, .. .. . . .... 77

' 3 ;77 85

-it R.g. .hn;.~~e"soche

Total . .... ... .... .. .... ... .... ... ... .... .. ... .... .. .... .... . Set

w 314

634044n

19 6

614 29 74 34.047 so 9 2107 169

519

66

COMMISSIONERS OFINTERNAL REVENUE

Office of Commissioner of'] aternalRevenue created by Act of Congress,July 1, 186 2

G'OBOE S. BOUTWELL

MassachusettsFJuly 17,1862/March 4,1863

JOSEP11 J . LEWISPennsylvani aMarch 18,1863/June 30,1865

WILLIAM ORTO NNew YorkJuly 1, 1865/Oct . 31, 1865

EDWARD A . ROLLINSNew HampshireNov 1, 1865/March 10, 1869

COLUMBUS DELAN OOhioMarch 11, 1869/Oct. 31, 1870

ALFRED PLEASONTO NNew YorkJan . 3,187]/Aug. 8,1871

JOHN W. DOUGLASSPennsylvaniaAug . 9,1871/May 14,1875

DANIEL D . PRATTIndianaMay 15,1875/Juiy 31, 1876

GREEN B. RAU MIllinoisAug . 2,1876/April 30,1883

WALTER EVAN SKentuckyMay 21, 1883/March 19, 1885

JOSEPH S . MILLERWest VirginiaMarch 20,1885/March 20,1889

JOHN W. MASONWest VirginiaMarch 21,1889/April 18,1893

JOSEPH S . MILLERWest VirginiaApril 19,1893/Nox~ 26,1896

W. STJOHN FORMANIllinoi sNov 27,1896/Dec. 31,1897

NATHAN B. SCOTTWest VirginiaJan. 1, 1898/Feb. 28,1899

GEORGE W. WILSONOhioMarch 1, 1899/Nov 27, 1900

JOHNW. YERKESKentuckyDec. 20,1900/April 30,1907

JOHN G . CAPERSSouth CarolinaJune 5, 1907/Aug. 31, 1909

ROYAL E . CABEL LVirginiaSept. 1, 1909/April 27,1913

WILLIAM H . OSBORNNorth CarolinaApril 28,1913/Sept. 25 . 1917

DANIEL C . ROPE RSouth Carolin aSept . 26,1917/March 11, 1920

WILLIAM M . WILLIAMSAlabamaApril 1, 1920/April 11, 1921

DAVID H . BLAI RNorth Carolin aMay 27,1921/May 31, 1929

ROBERT H . LUCASKentuckyJune 1, 1929/Aug. 15,1930

GUYT. HELFVERINGKansasJune 6, 1933/Oct. 8, 1943

ROBERT E. HANNEGANMissouriOct . 9, 1943/.Jan. 22, 1944

JOSEPH D . NUNAN . JR .New Yor kMarch 1, 1944/June 30, 1947

GEORGE J. SCHOENEMANRhode Islan dJuly 1, 1947/July 31, 1951

JOHN B. DUNLA PTexasAug . 1, 1951/Nov. 18, 1952

T. COLEMAN ANDREWSVirginiaFeb . 4, 1953/Oct. 3 1, 1SP55

RUSSELL C. HARRINGTONRhode Islan dDec. 5, 1955/Sept. 30, 1958

DANA LATHAMCaliforniaNov. 5, 1958/Jan. 20,1961

MORTIMER Al . CAPLINVirgini aFeb . 7,1961/luly 10, 1964

SHELDON S . COHENMarylan dJan . 25, 1965/June 22, 197.1RANDOLPH W. THROWEk.Georgi aApril 1, 1969/.Iune 22, 1971JOHNNIE M . WALTERSSouth CarolinaAug. 6, 1971/April 30, 1973DONALD C . ALEXANDEROhioMay 25,1973/Feb. 26, 1977JEROME KURTZPennsylvani aMay 5, 197 7/Oet. 31, 1980ROSCOE L . EGGER. JR.I nolian aMarch 14, 1981/April 30, 1986LAWRENCE B . GIBBSTexasAug, 4, 1986/pr9sent

The following were ActingCommissioners during periods whenthere was no Commissioner holdingthe office :

jOSEPH J. LEWIS of Pennsylvaniafrom March 5, to March 17, 1863

JOHN W DOUGLAS of Pennsylvaniafrom Nov 1, .1870, to Jan. 2, 1871

HENRY C . ROG ERS of Pennsvlvaniafrom May 1 to May 10, 188j, and fromMay I to June 4, 1907

JOHN .J. KNOX of Minnesotafrom May I I to May 20, 1883

ROBERr WILLIAMS, .IR . of Ohiofrom Nov. IS to Dec. 19, 1900

MILLARD F WEST of Kentuckyfrom April 12 to May 26, 1921

HE MIRES of Washingto nfrom Aug . 16 to Aug . 19, 1930

PRESSLY R. BALDRIDGEof Iowafrom May 16 to June 5, 1933

HAROLD N . GRAVES of Illinoisfrom Jan . 23 to Feb . 29, 194 4

JOHN S . GRAHAM of North Carolinafrom Nov. 19, 1952, to Jan . 19, 1953

JUSTIN F WINKLE of New Yor kfrom Jan . 20 to Feb . 3 , 1953

0. GORDON DELK of Virgini afrom Nov. 1 to Dec . 4, 1955, and fromOct. I to Nov. 4, 1958

CHARLES 1 . FOX of Utahfrom Jan . 21 to Feb . 6, 1961

BERTRAND NJ . HARDING of Texasfrom July 11, 1964, to Jan. 24, 1965

WILLIAM H . SMITH of Virginiafrom Jan . 21, to Aug. 5, 1971

HAROLD T. SWARTZ of Indianafrom June 23 to Aug. 5, 1971

RAYMOND F. fIARLESS of Californiafrom May I to May 25, 1973

WILLIAM E. WILLIAMS of Illinoi sfrom Feb . 27 to May 4, 1977, and fromNov. 1, 1980, to March 13,1981

JAMES 1, OWENS of Alabam afrom May I to Aug . 3,1986

PRINCIPAL OFFICERSOF THE INTERNALREVENUE SERN71C Eas of September 30, 198 6

NATIONAL OFFIC E

COMMISSIONERLawrence B . Gibb s

DEPUTYCOMMISSIONERJames 1 . Owens

ASSISTANT TO THECOMMISSIONERRichard C. Stark

ASSN'TANT TO TI I ECOMMISSIONER(Legislative Liaison)Vacan t

DIVISION DIRFCTORLegislative AnalysisGayle G . Morin

ASS187ANT TO THE,COMMISSIONER(Public Affairs )Ellen Murphy (Acting)

TAXPAYER OMBUDSMANJack G . Petrie

ASSISTANT-TO THEDEPUTY COMMISSIONERVacan t

EXECUTIVE SECRETARYGeorge A . O'Hanlon

INSPECTION

ASSISTANT COMMISSIONERJohn M . Rankin,Jr.

DEPUTYASSIS`FANTCOMMISSIONERKenneth A . Thompson

DIVISION DIRECTORS :

INTERNAL AUDITErwin Sobin

INTERNAL SFCURITYC . Arnold Decke r

DATA PROCESSING

ASSOCIATE COMMISSIONERM . Eddie licirommus

TAX SYSTEM REDESIGN

ASSISTANT COMMISSIONERVacant

COMPUTrR SERVICES

ASSISTANT COMMISSIONERVacant

DEPUTYASSISTANT COMMISSIONERDaniel N. Capozzol i

DIVISION DIRECTORS :

HARDWARERichard NV. Marsh

COMPLIANCE PROCESSINGSYSTEM SGerald A. Rabe

PLANNING . BUDGETINGAND REVIEWS-IAFFDonald E. Curti s

TAX PROCESSING SYSTEMSWalter A. Hutton

USER ASSHWANCE &COMPUTER CAPACITYMANAGEMENT OFFICEBernard F Mille r

RETURNS ANDINFORMATION PROCESSING

ASSISTANT COMMISSIONERDominic E . Pecorell a

DEPUTYASSISTANT COMMISSIONERHenry H . Philcox

DIVISION DIREC'IX)RS :

NATIONAL COMPUTER CENTERMartinsburg, W VStephen .1 . Stalcup

PROGRAM PLANNINGAND REVIEW SUAFFOphelia W Burton

RETURNS PROCESSING ANDACCOUNTINGFredric F Perdue

S7ATISTICS OF INCOMEFrederick J. Scheuren

TAXPAYER SERVICENVaher M. Alt

OPERATIONS

ASSOCIATE COMM ISSIONERPhilip E. Coates

; .* 67

6

COLLECTION

ASSISTANT COMMISSMONERWilliam M . Wauben

DEPUT YASSISTANT COMMISSIONERPaul M. Harrington

CRIMINAL INVESTIGATION

ASSISTANT COMMISSIONERRichard C. Wassenaar

DEPUT YASSISTANT COMMISSIONERAnthony V Langone

EXAMINATION

ASSISTANT COMMISSIONERFrederic I! Williams

DEPUTYASSISTANT COMMISSIONERRalph E Shilling

EMPLOYEE PLANS ANDEXEMP'T ORGANIZATION

ASSISTANT COMMISSIONERRobert 1 . Braue r

DEPUTYASSISTANT COMMISSIONERRobert E . Withers

DIVISION DIRECTORS:

EMPLOYEE PLANSTECHNICAL AND ACTUARIALMartin 1 . Slat e

EXEMPT ORGANIZATIONSTECHNICAL 'Edward D . Coleman

INTERNATIONALASSISTANT COMMISSIONERPercy R WoodardDEPUTYASSISTANT COMMISSIONERMichael J . Kell y

POLICY AND MANAGEM ENT

ASSOCIATE COMMISSIONERVacant

HUMAN RESOURCESMANAGEMENT & SUPPORT

ASSISTANT COMMISSIONERMichael P. Dolan

DEPUTYASSISTANT COMMISSIONEROrion L . Birdsall, Jr.

DIVISION DIRECTORS :

DIRECTOR OF PRACTICELeslie S . Shapiro

CONTRACTS AND ACQUISITIONSVacant

FACILITIES AND INFORMATIONMANAGEMEN'r SUPPORTJohn T. Blank

I IUMAN RESOURCESRobert J. Agresm (Acting)

NATIONAL OFFICERESOURCES MANAGEMENTSuellen P. Hamby

PLANNING, FINANCE, ANDRESEARCH

ASSISTANT COMMISSIONERJohn L. Wedick, J r

DEPUTYASSISTANT COMMISSIONERGuerry G . Notte

DIVISION DIRFCTORS :

FINANC EStephen E . Taylor

PLANNINGAlan A. Beek

RESEARCHFrank M . Malanga

DIVISION DIRECTORS :

DATA CENTERDetroit, Michiga nJack L. Schroeder (Acting)

RETURNS & INFORMATIONPROCESSIN G

TAX FORM SAND PUBLICATIONSEdmund 1 . Goldwag

REGIONAL AND DISTRICTOFFICERS

CENTRAL REGION

REGIONAL COMMISSIONERJames D . Hallman

ASSISTANT REGIONALCOMMISSIONERS :

COLLECTIO NDonovan H . Williams

CRIMINAL INVES71GATIONLarry R. Hyatt

EXAMINATIONDonald L . Houck

RESOURCES MANAGEMENTJon R. Swa n

DATA PROCESSINGCharles F. Jones

DISTRICT DIRECTORS :

CINCINNATI, OHJames J . Ryan

CLEVELAND . OHJack R Chivatero

DETROIT. MIJohn 0. Humme l

INDIANAPOLIS . INWilliam M .Jacobs

LOUISVILLE, KYRaymond L. Rizzo

PARKERSBURG, WVRonald W. Kirby

DIRECTOR,CINCINNATI SERVICE CEINTERPatrick J . Bottl e

REGIONAL INSPECTORJohn E . McManus

MID-ATLANTIC REGION

REGIONAL COMMISSIONERMichael J. Murphy

ASSISTANTREGIONAL COMMISSIONERS:

COLLECTIONLeroy C . Gay

CRIMINAL INVESTIGATIONThomas A. Wise

EXAMINATIONRegina M . Deanehan

RESOURCES MANAGEMENTJoseph F. Kam p

DATA PROCESSINGDonald N . Spagnuolo

DISTRICT DIRECTORS :

BALTIMORE . MDTeddy R . Kern

NEWARK, NJCornelius J. Coleman

PHILADELPHIA . PACharles E . Ruddy

PITTSBURGH . PAVacant

RICHMOND, NIAGerald R . Esposito

WILMINGTON. DEClare Shy Winter

DIRECTOR, 1111ILADELPHIASERVICE CENTERJoseph H . Cloonan

REGIONAL INSPECTORBenjamin J. Redmond

MIDWEST REGION

REGIONAL COMMISSIONERRoger L. Plat e

ASSISTANTREGIONAL COMMISSIONERS :

COLLECTIONAllen G . Woodhouse

CRIMINAL INVESTIGATIONWarren E . Harrison

EXAMINATIONLeon Moore

RESOURCES MANAGEMENTJack E. Shan k

DATA PROCESSINGJohn T Ade r

DISTRICT DIRECTORS:

ABERDEEN . S DDavid II. Reize s

CHICAGO. I LJ. Robert Starkey

DES MOINES, [AJohn Edwards

FARGO, NDWoodrow D. Malone

HELENA . MTJohn C. Wendorff

MILWAUKEE, WILawrence M . Phillips

OMAHA, NEMitchell E . Premis

SPRINGFIELD, ILIra S. Loeb

ST. LOUIS, MORobert A. LeBaub e

ST. PAUL . MNC. Dudley Switzer

DIRECTOR . KANSAS CITYSERVICE CENTEREverett Leary

REGIONAL INSPECTORJoseph F. Jeeb

NORTH ATLANTIC REGIONREGIONAL COMMISSIONERCharles II . Brenna nASSISTANTREGIONAL COMMISSIONERS :COLLECTIO NEugene P. Pfeiffer (Acting)CRIMINAL INVESTIGATIONBruce V MilburnEXAMINATIONMarshall V Washburn (Acting)RESOURCES MANAGEMENTJohn J . DunneDATA PROCESSINGFrancine Crowley

DISTRICT DIRECTORS :

ALBANTY, NTYEdwin A. Kellehe r

AUGUSTA. MEJames E . Daly, Jr.

BROOKLYN, NYJohn J .Jennings

BUFFALO. NYGary H . Matthews

BURLINGTON, VT.Joyce Weitz

HARI'FORD, CTJames E . Quinn

BOSTON. MAJohn D .Johnso n

MANHATTAN. NYPete J. Medina

PORTSMOUTH . NIIDonald D. Mitgang

PROVIDFNCE. RIMalcolm A . Licbermann

DIRECTOR . BROOKHAVENSERVICE CENTE RBobby G . Hughes

DIRECTOR . AND~OVER SERVICECENTERThomas M . Quinn

REGIONALINSPECTORJoseph F. Reinhold

i,

SOUTHEAS'r REGIONREGIONAL COMMISSIONERThomas A . CardozaASSISTANTREGIONAL COMMISSIONERS :COLLECTIONConrad L. ClapperCRIMINAL INVESTIGATIONJoseph T PagarniEXAMINATIONDonald E . BerghermRESOURCES MANAGEMENTLee R . Monk sDATA PROCESSINGHenry E. Lecch,Jr.DISTRICT DIRECTORS :COLUMBIA. SCDonald L. BrcihanATLANTA,GAPaul D. WilliamsBIPMINCHAM . ALPhilip .J. SullivanGREENSBORO.NCJohn E. BurkeJACKSON . NISTully MillerJACKSONVILLE, FLVacantLITTLE ROCK, ARWilliam F BarlowNASHVILLE, TNAlvin H . KolakNEW ORLEANS, LADavid G. Blattne rDIRECTOR . ATLANTA SERVICECENTERSylvia IT WrenDIRECTOR. MEMPHIS SERVICECENTE RRaymond P. KeenanREGIONAL INSPECTORBilly G . Morriso nFT. LAUDERDALEMerlin W Ileye

SOUTHWEST REGION

REGIONAL COMMISSIONERRichard C. Voskuil

ASSISTANTREGIONAL COMMISSIONERS :

COLLECTIONGerald F Swanson

CRIMINAL INvEsrIGATIONGlenn E . Shepard

EXAMINATIONJames R. Kopidlansky

RESOURCES MANAGEMENTJames A. Lindsey

DATA PROCESSINGCharles J. People s

DISTRICT DIRECTORS :

ALBUQUERQUE, NMFrancis L. Browitt

AUSTIN, TXGary 0. Booth

CHEYENNE, WYVacant

DALLAS.TXGlenn Cagle

DENVER,COGerald L . Mihibachler

HOUSTON . TXArturo A. Jacobs

OKLAHOMA CITY. ORKenneth J. Sawyer

PHOENIX, AZPrescott A . Berry

SALT LAKE CITY, UTCarol M . Fay

WICHITA, KSClarence M . King, Jr

DIRECTOR ,AUSTIN SERVICE CENTERLarry G . Westfall

DIRECTOR ,OGDEN SERVICE CENTERRobert E. Wenze l

REGIONAL INSPECTORE . Derle Rudd

WESTERN REGION

REGIONAL COMMISSIONERThomas P. Coleman

ASSISTANT REGIONALCOMMISSIONERS:

COLLECTIONJames D . Hel m

CRIMINAL INVESTIGATIONDarrell G . Smith

EXAMINATIONRichard S. Wintrode

RESOURCES MANAGEMENTCharles W Gilbert

DATA PROCESSINGRobert .l. Kensinger, Jr.

DISTRICT DIRECTORS :

ANCHORAGE, AKCalvin E. Esselstro m

BOISE, IDRichard R. Orosco

HONOLULU. HIHarold M . Brownii ng

LAGUNA NIGUEL ' CAMichael J. Quinn

LOS ANGELES . CAFrederick C. Nielsen

PORTLAND, ORCarolyn K . Leonard

LAS VEGAS .NVJesse A . Cota

SACRAMENTO, CARaymond A . Spillman

SAN FRANCISCO. CAFrancis S . Micel i

SAN JOSE, CAElmer W Kletke

SEATTLE, WARobert E. Mirsberger

DIRECTOR.FRESNO SERVICE CENTERTheron C . Polivka

REGIONAL INSPECTORVacant

CHIEF COUNSEL FORTHEINTERNALREVENUE SERVIC E

WALTER H . SMITH/1866

WILLIAM MCMICHAEL/1871

CHARLES CIIESLEY/1971

THOMAS J. SMITH/1888

ALPHONSO HART/1890

ROBERT T HOUGH/1893

GEORGE At . THONIAS/1897

ALBERT W. WISHARD/1901

A.B. HAYES/1903

FLETCHER MADDOX/1908

ELLIS GJOHNSON/1913

AA . BALLANTINE/1918

D.M . KELLEHER/1919

ROBERT N. MILLEW/1919

WAYNE JOHNSON/] 920

CARL A . MAPES/1920

NELSON T HARTSON/1923

ALEXANDER W GREGG/1925

CLARENCE M . CHAREST/1927

E. BARRETr PRETTYMAN/1933

ROBERT 11 . JACKSON/1934

MORRISON SHAFORTH/1936

JOHN P. WENCHEL/1937

CHARLES OLIPIIANT/1947

CHARLES W DAVIS/1952

DANIEL A . TAYL611/1953

JOHN POTTS BARNES/19S5

NELSON F. ROSE/1957

ARCH M. CANTRALL/1958

HART 11 . SPIEGEL/1959

CRANE C . HAUSER/1961

SHELDON S . COHEN/1964

MITCHELL ROGOVIN/1965

LESTER R. URETZ/1966

K. MARTIN WORTHY/1969

LEE H . HENKEL,JR./1972

MEADE WHITAKER/1973

S`rUARr E. SIEGEL/1977

N . JEROLD COHEN/1979

KENNETH W GIDEON/1981

FRED T. GOLDBERG, JR./1984

WILLIAM F NELSON/198 6

The following are Acting ChiefCounsel during periods when therewas no Chief Counsel holding theoffice :

.JOHN W BURRUSfrom March 2, 1936, to Nov~ 30, 1936

MASON B . LEMIN Gfrom Dec. 6, 1951, to May 15, 195 2

KENNETHIK GEMMILLfrom June 11, 1953, to Nov. 8, 1953

RUDYR I I ERTZOGfrom Dec. 1, 1954, to May 8, 1955,from Jan . 20, 1961, to Aug . 16, 1961,and from Sept . 1, 1963, to Jan. 5,1964

HERMAN I REILINGfrom Jan . 19, 1957, to March 13, 1957,and from Aug . 31, 1959, to Sept . 20,1959

LESTER R . URETZfrom April 1, 1966, to April 11, 1966

RICHARD M . HAHNfrom Jan. 20, 1969, to .lune 25, 1969

LEE H . HENKEL, JR.from Jan. 16, 1972, to June 11, 1972

LAWRENCE B. GIBB Sfrom April 17, 1973, to Oct. 19, 1973

7 1

CHARLES L SAUNDERS,JR .from Jan . 20, 1977, to April 15, 197 7

LEON G . WIGRIZERfrom April 16, 1977, to June 23, 197 7

LES7ERSrEINfrom June 1 . 1979, to Nm~ 16, 1979

JEROME D . SEBASTIA Nfrom .lan . 21,1981, to Feb . 2,1981,and from March 30, 1981 to Aug. 14,198 1

EMORYL . LANGDO Nfrom Feb . 3, 1981, to March 29, 198 1

.JOEL GFR13E Rfrom May 28, 1983, to March 17, 1984

V JEAN OWEN Sfrom March 14,1986 to .luly 27,198 6

NOTE:From 1866 to 1926, the chief legalofficer for the Internal RevenueService was known as the Solicitor.For the next eight years, 1926 to1934, he had the title of GeneralCounsel for the Bureau of InternalRevenue . Since 1934 he has operatedunder the title of Chief Counsel .

Y" '~4

6

-4~~ V 43...

PRINCIPAL OFFICERSOF THE IRS OFFICEOF CHIEF COUNSELas of Sept. 30, 1986

NATIONAL OFFIC E

CHIEFCOUNSELWilliam M . Nelson

DEPUTY CHIEF COUNSELVJean Owens

SPECIAL ASSISTANTTO THE CHIEF COUNSELJames D . Bridgernan

ASSISTANT TIC) THEDEPUTY CHIEF COUNSELRonald A. Glaser

DIVISION DIRECTORS :

APPEALSHoward T Martin

OPEPATIONSRichard .). Mihelcie

ASSOCIATE CHIEF COUNSEL(LITIGATION)James J. Keightley

DEPUTY ASSOCIATE CHIEF COUNSELDonald T Roce n

SPECIAL LITIGATION COUNSELStephen M . Miller

SPECIAL APPELLATE COUNSELDaniel E Folzenlogen

SPECIAL ASSISTANT TOTHE ASSOCIATE CHIEFCOUNSEL (LITIGATION)Martin Kay e

LITIGATION DIVISION DIRECTORS:

CRIMINAL TAXVacant

DISCLOSURE LITIGATIONPeter V Filpi

GENERAL LEGAL SERVICESWilliam F. Long, Jr.

GENERAL LITIGATIONArnold E . Kaufman

TAX LITIGATIONRobert P. Ruwe

ASSOCIATE CHIEF COUNSEL(TECHNICAL )Peter K. Scott

DEPUTYASSOCIATE CHIEF COUNSELMarlene Gross

PRINCIPAL TECHNICAL ADVISORMichael S . Novey

SENIOR TECHNICAL ADVISORDavid E . Dickinson

TFCHNICAL ADVISORSPhilip BennetVacant

SENIOR STAFF ASSISTANTJanet Dearborn

STAFFASS M,ANTRobert O'Har a

TECHNICAL DIVISION DIRECTORS:

CORPORATION TAXVacant

EMPLOYEE PLANS ANDEXEMPT ORGANIZATIONSJames J. McGovern

INDIVIDUAL TAXMario E . Lombardo

INTERPRETATIVEJames F Malloy

LEGISLATION AND REGULATIONSDonald 6. Osteen

REGIONAL AND DISTRICTOFFICERS

CENTRAL REGION

REGIONAL COUNSELClarence E . Barnes, Jr.

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX)Charles M . Layton

DEPUTY REGIONAL COUNSEL(GENERAL LITIGATION)Robert M . Venable

.

DEPUTYRECIONAL COUNSEL(TAX LITIGATION)Mary Helen Weber

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)John A. Freema n

REGIONAL DIRECTOR OF APPEALSThomas I Yate s

DISTRICT COUNSEL :

CINCINNATI, OHRichard E. Trogolo

CLEVELAND, OilBuckley D. Sowards

DETROIT. MICharles S . Stroad

INDIANAPOLIS. INRoss E. Springer

LOUISVILLE. KYFerdinand J. Lx)Lz, I H

MID-ATLANTIC REGION

REGIONAL COUNSELDavid E. Gaston

DEPUTY PEGIONAL COUNSEL(CRIMINAL TAX )Richard A. Francis, Jr.

DEPUTY REGIONAL COUNSEL(TAX LITIGATION)Charles ET Carrol l

DEPUTY REGIONAL COUNSEL(GENERAL LITIGATION)John Kissane

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)David .l . Markman

REGIONAL DIRECTOR OF APPEALSNelson A. Brooke

DISTRICT COUNSEL:

BALTIMORE. MDHerbert A. Seidman

NEWARK, NJMatthew Magnone

PHILADELPHIA . PAH . Stephen Kesselman

PITTSBURGH, PADonald W Howser

RICHMOND, VAMarion B. MortonWASHINGTON, DCMelvin E. Lefkowitz

MIDWEST REGION

REGIONAL COUNSELDenis .l. Conlo n

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX )Carleton E . Knechte l

DEPUTY REGIONAL COUNSEL(GENERAL LITIGATION)William J. York

DEPUTY REGIONAL COUNSEL(TAX LITIGATION)Harmon B. Dow

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)Jeffrey J . Sieburg

REGIONAL DIRECTOR OF APPEALSKevin P. Morgan

Qm_~iNi :-,. 7 3

DISTRICT COUNSEL:

CHICAGO. ILVacant

DES MOINES. IAVacant

HELENA . MTThomas C . Morrison

KANSAS CITY, MOJames T. Finlen, Jr.

MILWAUKEE . WINelson E. Shafer

OMAHA . NERonald M. Frykberg

SPRINGFIELD, ILJeff . R Ehrlich

ST. LOUIS, MOVacant

ST. PAUL . MNRobert F. Cunningham

NORTH-ATLANTIC REGION

REGIONAL COUNSELAgatha L . Versanger

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX )Barry J . Finkelstein

DEPUTYREGIONAL COUNSEL(GENERAL LITIGATION)Myron Levine

DEPUTY REGIONAL COUNSEL(TAX LITIGATION )Jay S. Hamelburg

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)Robert F Hermann

REGIONAL DIRECTOR OF APPEALSEugene D. Alexande r

DISTRICT COUNSEL :

ALBANY, N YGerald A . Thorpe

BOSTON. MARobert B. Dugan

BROOKLYN. NYSummer L. Lipsky

BUFFALO, NYJohn E . Whit e

HARTFORD . CTPowell W Holly, Jr.

MANHATTAN, NYJoseph F Maselli

SOUTIIEA';rr REGION

REGIONAL COUNSELJack D . Yarbrough

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX )Jack Morton

DEPUTYREGIONAL COUNSEL(GENERAL LITIGATION)Ronald E Campbell

DEPUTY REGIONAL COUNSEL(TAX LITIGATION)Ray L. Allison

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)Harry G . Maso n

REGIONAL DIRECTOR OF APPEALSRobert B . Douthitt

DISTRICT COUNSEL:

ATLANTA, CADean R . Morley, III

BIRMINGHAM . ALJohn B . Harper

GREENSBORO.NCAlan 1 . Weinburg

JACKSONVILLE, FLRay S . Fischbeck

MIAMI, FL .John T Lyons

NASHVILLE, TNRichard J. Neubauer

NEW ORLEANS, LAJames E. Keeton,Jr.

SOUTHWEST REGION

REGIONAL COUNSELDavid L. Jordan

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX )Val J. Albrigh t

DEPUTY REGIONAL COUNSEL(GENERAL LITIGATION)Charles L . MeReynolds,Jr.

DEPUTYRFGIONAL COUNSEL(TAX LITIGATION )Mark L. Puryea r

ASSISTANT REGIONAL COUNSEL(GENERAL LECAL SERVICES)Gary A . Anderso n

REGIONAL DIRECTOR OF APPEALSClaude C. Rogers Jr.

DISTRICT COUNSEL :

AUSTIN. TXLewis J. Hubbard

DALLAS,TXKenneth A. Little

DENVER . COWilliam A . Goss

HOUSTON . TXHarold Friedma n

OKLAHOMA CITY. O KMichael J. O'Brie nPHOENIX. AZRoger Rhode s

SALT LAKE CITY. UTMarion K . Mortense n

WESTERN REGION

REGIONAL COUNSELBenjamin C . Sanchez

DEPUTY REGIONAL COUNSEL(CRIMINAL TAX)William K . Shipley

DEPUTY REGIONAL COUNSEL(GENERAL LITIGATION)Vacan t

DEPUTYREGIONAL COUNSEL(TAX LITIGATION )Barbara Leonard

ASSISTANT REGIONAL COUNSEL(GENERAL LEGAL SERVICES)Robert J. Wilso n

RFGIONAL DIRECTOR OF APPEALSDonato Cantalupo

DISTRICT COUNSEL :

ANCHORAGE . AKJames A . Nelson

BOISE. 11)Wayne R . Appleman

HONOLULU. HIWilliam A. Sims

LAGUNA NIGUEL. CADorotW W Westover

,LOS ANGELES. CA.Joseph 0. Creaves

PORTLAND . ORMichael W Bentley

RENO, N VS. Clay Freed

SACRAMENTO, CASteven J. Mopsick

SAN DIEGO, CADonald 'A' Wol f

SAN FRANCISCO . CAJ . Richard Murphy

SAN JOSE, CALawrence G. Lilly

SEATTLE, WARichard J. Shipley

0

74

IRS ORGANIZATION CHART

Nig,onalOffice

Al .i .- Itlail-

Department of the Treasury

Assistants to theCommissioner ant,Deputy Commissioner'

Associate Commissioner

A=E--t..c =21117

0=17--n0 .- E .a-

Allutllt C-11-1.11

0 -1F,Md0--0-.E A-

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Dil-I

I

CommissionerDeputy Commissioner

L-1 . . . . .. .. . . . .

Associate Commissioner(Poicy & Manage,ent)

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Assistant Commissioner

Associate Commissioner(Data P-ng)

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oft.01J.0 --plenlt-01k,l 0 K-lag,

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Chief CounselDeputy Chief Counse l

Associat Chief Counsela(T.r..1)

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Associate Chief Counsel(Lagatm)

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Associate Chief Counselintemabonal)

Iu,alill DAqAu.

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7 5

IRS REGIONS, CHIEF COUNSELDISTRICTS AND REGIONAL ANDSERVICE CENTERS; DISTRIzCT OFFICES

is Ico SOUTHWEST

REGION

A.

REGIO NSOUTHWEST

N. 0AT.

A .-

jj~:~

N - .1--` Z'-

11

WESTERN REGION

MIDWEST REGION

CENTRALREGIO N

NORTH . TLANTI CREGION

MIDATLANTI CREGION

SOUTHEASTREGIO N

Fl . L...I .A.

C111

N...

76

INDEX

AAbusive Tax Shelters 18, 35Academic Internships andExternships 34Administrative Appeals 31Administrative Functions ,Review of 24

Automated Underreporter 24Appeals Workload 58Automated Collection System 20Automated Examination System 1 7

BBank Secrecy Act 19

CCase Management 3 2Cases, Summary Disposition of 65Cash Management 2 8Chief Counsel 7 1Chief Counsel, Acting 71Chief Counsel, Office of 30Collection 2 0Collection Activity, Results of 38-44Collection by Sources, Regions

Districts, States and Other Ar~as 38Commissioners 6 6Commissioners, Acting 67Commitment to Quality Service 29Computer Assisted Audit Program 17Computer Services 2 5Continuing Professional Education 33Contributions to Reduce the Public

Debt 1 1Coordinated Examination 18Criminal Investigation 1 9

DDirector of Practice 28Disaster Assistance 14Drug Enforcement Task Forces,Organized Crime 19

EEarned Income Credit 9Electronic Filing 9Employee Plans 22, 34Employees, Number of 64Engineering Program 1 7EP/EO, Requests for Tax Rulings andTechnical Advice 59

Equal Employment Opportunity 29ERISA, Determination LettersIssued on 5 9

Examination Results 16, 50-56Exempt Organizations 2 2Exempt Organizations, Active Entities

on Master File 6 0Exempt Organizations, Disposal of

Applicatio ns 6 0Exempt Organizations, Returns

Examined by Type 59

FForeign Operations,see International 20

Forms and Publications 1 5

GGeneral Legal Services 3(,

Illegal Tax Protesters 1 9Industry Specialization Program 34Information Returns Program 17Inspection 2 5Integrity Program 27Internal Audit 26Internal Security 26International 20International Issues 3 0

LLaser Technology 23Legislative Affai rs 28Litigation 34Litigation Initiatives 36

MManagement Initiatives 32Map; IRS 7 5Master File 9

0Office of Chief Council, The 30Operating Costs 61,62Organization Chart (IRS) 74Organized Crime Drug Enforcement

Task Forces 19

PPayroll Improvement 24Penalties and Interest 11Penalties (Civil) Assesse dand Abated 57

Publications, Forms and 15Presidential ElectionCampaign Fund 11

Private Letter Rulings and TechnicalAdvice Requests 3 1

Principal Officers, Chief Counsel 72Principal Officers, IRS 6 7Problem Resolution Program 15Productivity Improvement 27, i

Quality Service, Commitment to 29Questionable Refund Program 1 9

RRecruitment, Training and 24Refunds 8Regulations 34Research 2 5Returns Examined 50-56Returns Filed 48Returns Preparer Program 17Returns Received 8Revenue Rulings and Revenue

Procedures 3 1Review of Administrative

Functions 2 4

SService Center Collection Branch 20Space Management, 2 4Special Trial Attorneys 34Statistical Sampling 17Statistical Tables 37Statistics of Income 2 8Strategic Management System 2 4

TTax Gap and Compliance, The 25Tax Protesters, Illegal 2 0Tax Reform Le islation 30Tax Refund OfAet Program 11Tax Receipts 8Tax Shelters, Abusive 19, 35Tax System Redesign 23Taxpayer Education 14Taxpayer Information 15Technical Advice Requests, Private

Letter Rulings and 31Telephone Assistance 14Training and Recruitment 24Trial Attorneys, Special 34

WWalk-In Service 14Workload Priority and Selection

System 2 0Write, Call or Walk In 14

2.