316

10,500

INTERNAL REVENUE SERVICE-Continued

General and special funds-Continued

SALARIES AND EXPENSES-Continued

This appropriation provides for the overall direction of the Internal Revenue Service and for the internal audit and security functions. The appropriation requested for 1966 provides for additional personnel needed to strengthen the internal audit and security operations and to strengthen certain administrative programs.

1. Executive direction.-This activity provides for overall direction and advance planning necessary to the Service's operation. It also provides for research into various aspects of the Federal tax system; for FederalState cooperative efforts in tax administration; and for coordinating and supervising Service participation (through the Agency for International Development) in providing tax administration assistance to foreign countries.

2. Internal audit and security.-This activity provides for internal audits of the operations of the Service. It makes investigations of new and prospective employees. It investigates acts of bribery and other criminal actions by Service employees, tax practitioners, and taxpayers.

SELECTED WORKLOAD DATA

Internal audit examinations. Internal security investigations.

1964 actual 1965 estimate 1966 estimate 290 8,221

237 9,300

Object Classification (in thousands of dollars)

31.0 Equipment...

157

114

188

42.0 Insurance claims and indemnities.

For necessary expenses of the Internal Revenue Service for processing tax returns, and revenue accounting; hire of passenger motor vehicles; and services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), and of expert witnesses at such rates as may be determined by the Commissioner, including not to exceed $17,500,000 for temporary employment and not to exceed

$77,000 for salaries of personnel engaged in pre-employment training

of card punch operator applicants; [$148,800,000 $166,000,000. (5 U.S.C. 133; Title 26 U.S.C.; 60 Stat. 810; Treasury Department

Appropriation Act, 1965.)

198 1,737

The funds provided in this appropriation are required to receive and account for all tax returns, information documents, and payments; deposit moneys received; verify mathematical accuracy of returns; establish and maintain taxpayer files and an account for each taxpayer; pay refunds or offset refunds against delinquent accounts; issue notices of accounts receivable; provide investigation leads; assist in the selection of tax returns for audit; prepare annual reports in the statistics of income series; and prepare other studies and forecasts.

The appropriation requested for 1966 provides for the additional manpower and ADP equipment necessary to extend coverage of the master file ADP system, to continue development of the nonmaster file data center, and to cope with additional workload represented by 1.9 million additional tax returns.

1. District manual operations.-This activity provides for receiving tax returns, depositing tax payments, and settling questions about the returns before sending returns issues, and controls internal revenue stamps and other to service centers for processing. It also requisitions, receipts for payment of taxes. It is responsible for taxpayer contact by telephone, mail, or personal call; adjust

Unpaid undelivered orders. Advances...

99 1,440

98 1,507

98 1,507

98 1,507

Total selected resources__

192 1,797

192

192

1,797 1,797

ments of tax returns; maintaining tax return files and furnishing information from the files as requested; and providing tax forms to taxpayers upon request.

In those districts where revenue accounting has not yet been transferred to service centers, this activity performs all revenue accounting functions and makes determinations with respect to tax refunds, credits, penalties, abatements, or overassessments.

2. Service center automated operations.-This activity provides for overall direction of revenue accounting and processing functions, and for operation of Regional Service Centers, the National Computer Center, and the IRS Data Center. It is responsible for processing, verifying, and computing tax liabilities and maintaining master files of taxpayers and an account for each taxpayer. It performs revenue accounting, except where this function has not yet been transferred from the districts, and issues tax bills and notices of delinquencies and establishes delinquent accounts. It pays refunds or, where possible, offsets them against delinquent accounts. It compares information documents with tax returns and assists in the selection of returns for audit; and it provides investigation leads to potential failures to file tax returns.

3. Statistical reporting. This activity provides for the extraction and analysis of information from tax returns to be used in preparing and publishing annual reports and other studies, including the Statistics of Income series for use by the Treasury Department, the Joint Congressional Committee on Internal Revenue Taxation, the Council of Economic Advisers, the Internal Revenue Service, State governments, and others.

SELECTED WORKLOAD DATA

COMPLIANCE

733

For necessary expenses of the Internal Revenue Service for determining and establishing tax liabilities, and for investigation_and enforcement activities, including purchase (not to exceed [two hundred twenty-five] two hundred and forty-six for replacement only, [of which one hundred fifty] for police-type use which may exceed fiscal year) and hire of passenger motor vehicles; and services as by $300 each the general purchase price limitation for the current authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), and of expert witnesses at such rates as may be determined by the Commissioner; [$418,350,000 $453,500,000. Title 26 U.S.C.; 60 Stat. 810; Treasury Department Appropriation (5 U.S.C. 133; Act, 1965.) Program and Financing (in thousands of dollars)

[In thousands]