1949 - Internal Revenue Service

34
REPORT OF COMMISSIONER OF INTERNAL REVENUE
During the year, a total of $3,089, including interest of $525, was
refunded as the result of court decisions.
Divisiox.—The Sales Tax Division is concerned with
SALES TAX
the administration of the manufacturers' excise taxes and the retail
dealers' excise taxes on jewelry, furs, toilet preparations, luggage, etc.
Collections with respect to the taxes administered in the Sales
Tax Division are shown in the following table:
Retailers' excise taxes:
Furs
Jewelry
Luggage
Toilet preparations_
Total
Grand total
Collections during the fiscal years 1848 and 1949
Source 1948 1949
Increase or decrease
(—)
Manufacturers' excise taxes:
$80, 88A 921.61 $81,759, 611.97 $872,600.36
Lubricating oils
478, 637,625.15 603, 647,470.24 25,009, 845.09
Gasoline
159, 284,138.85 150,899, 047.98 —8, 385,090.69
Tire and tubes
91,962,891.20 136,797,379.13 44,834,487.93
Automobile trucks and bues
Oth er automobiles and motor cycles
270 968, 392.21 2, 12, 342. 37 61,853,950.16
Parts and accessories for automobiles
1,, 22, 950 708.28 3320,1838,240.14 12,812,468.14
—
69, 700, 529.73 79, 347,495.66 9,646,985.93
Electrical energy
Electric, gas, and oil appliances
87, 857, 612. 46 80,934, 508.61 —6,923,103.85
24, 935, 505.39 26,172,166.87 1,236, 681.48
Electric light bulbs and tubes
Radio sets, phonographs, components, etc
67,288, 866.93 49,159, 550. 23 —18, 107, 306.70
7, 531, 905.10 8, 482, 797.74 —1,049, 107.36
Phonograph records
s
10, 572,682.91 9, 29E 868.30 —1, 280,014.61
Musical instruments
Mechanical refrigerators, air-conditioners, etc... 58,473,3. 22
10, 609, 6 7 5 2 77,833,244 . 87 19, 359, 873.65
7.69 8, 737,618.31
—1, 872 , 039.38
Matches
Business and more machines
32, 707,141.16 83, 343,900.01 636,758. 85
Luggage—manufacturers' excise (suspended
189.13
100.40
—88.73
A. Apo. I 1944)
Photographic apparatus
43, 935,373.95 43, 139,668.92 —795, 705.53
18,827,947.98 10,846, 484. 74 1,018, 536.76
S ding goods
rms, shells, and cartridges
11,276, 687.37 10, 378,538.42 —898,148.95
857,913,44 809, 888.11 —48,025.33
Pistols and revolvers
1,649,234,052. 58 1,771, 532, 722.50 122, 298,669.04
Total
79, 539, 152.40
217,899,249.20
80, 632, 323.81
91,852,012. 02
61,946,246. 55
210, 688, 165.33
82, 807, 133.49
93,969,241.32
—17, 592,905.85
—7,211,083.87
1,974,809.68
2,117, 22E1.40
469, 922, 738.33 449,210, 786.69 —20, 711,951.64
2,119, 158, 790.89 2, 220,743, 509.19 101, 586,718.30
Assessments. —A total of $4,792,587,524, representing 6,371,808
items, was assessed on 3,473 miscellaneous tax assessment lists, which
included original and additional assessments of miscellaneous internal
revenue taxes.' Included in the lists were 21,222 additional assessments,
resulting from office audit and field investigations, representing
tax, interest, and penalties of $134,369,337. Interest included in
this amount totaled $15,685,214.
Field reports.—At the beginning of the year there were on hand
180 field reports with respect to proposed additional sales taxes,
amounting to $2,016,793. During, the year, 1,585 field reports were
received, representing $4,601,714 in proposed additional taxes, and
1,566 were examined and closed, representing taxes amounting to
$4,266,279. On June 30, 1949, there were 199 reports covering
$2,352,228 awaiting additional evidence.
I As a matter of administrative convenience, the Sales Tax Division completes assessments, schedules
claims and certificates of overamessment, and passes on offers in compromise fo
for the Estate Tax Division,
the Tobacco and Capital Stock Tax Divide/I, and the Miscellaneous Division.
REPORT OF COMMISSIONER OF INTERNAL REVENUE 35
Claims.—The number of claims received and disposed of by the
Sales Tax Division during the fiscal year ended June 30, 1949, is
shown in the following table:
Number of claims receieved and disposed of by the Sales Tax Division during the
year 1949
Claims
PI
Sales taxes:
On hand July 1,1948. 1,052
Received
1, 694
Reopened
24
Allowed
1, 598
Rejected
409
OnbandJune30,1949_ 713
Refund Abatement lincollectible Total
Amount
$2,606,807.18
3,135,989. 88
163, 218.86
1,254,938.32
2, 007,198.76
E 633, 878.84
Num
ber
586
1, 988
7
2, 214
78
288
Amount
$731, 141. 60
1,108 585.98
9, 201.21
987, 465.74
172, 266.49
6E4,196.56
p
8
308
315
1
Amount Num
ber Amount -
$18,879.06
461, 710.45
480, 694.62
4.89
1,645
3,940
31
4,127
488
1,001
$3,358,827.84
4, 706, 286.31
157, 420.07
E 722,988. 88
2,179,470.14
3,318, 075.40
In connection with the claims shown in the foregoing table interest
was allowed in the amount of $152,435, compared with $215,349
allowed as interest during the preceding year.
Credit cases.—At the beginning of the year there were on hand 2,041
sales tax credit cases involving $3,680,233. During the year 18,265
cases involving $49,730,686 were received and 17,084 cases involving
$46,339,137 were closed. Of this number 16,827 cases involving
$46,269,629 were allowed, while 257 cases representing $69,508 were
rejected.
Offers in compromise.—On July 1, 1948, there were on hand 6,272
offers in compromise aggregating $267,709, which had been submitted
in settlement of civil and criminal liabilities incurred in connection
with various excise and miscellaneous taxes. There were 21,611
offers aggregating $735,861 received; 23,250 offers aggregating
$488,380 were accepted; 241 offers in the amount of $90,623 were
rejected; and 100 offers amounting to $45,624 were withdrawn during
the fiscal year. On June 30, 1949, there were on hand 4,282 offers
amounting to $378,943 under consideration or awaiting additional
evidence.
Miscellaneous tax field force.—The small group of internal revenue
agents assigned to duty under the direction of the Miscellaneous . Tax
Unit, which operates chiefly as a mobile organization investigating
various miscellaneous delinquent taxes, continued to obtain excellent
results. During the year these field officers reported a total of 3,326
cases, involving $7,257,743 in additional taxes, penalties, and interest.
MISCELLANEOUS DIVISION.—The Miscellaneous Division is concerned
with the administration of the taxes on admissions, dues,
telephone, telegraph, and cable facilities, transportation of persons,
transportation of property, transportation of oil by pipe line, safe
deposit boxes, the processing of coconut and other vegetable oils,
manufactured sugar, transfers of interests in silver bullion, hydraulic
mining; the special taxes on the maintenance of coin-operated amusement
and gaming devices, and on the operation of bowling alleys and
billiard and pool tables; documentary stamp taxes; taxes on oleomargarine,
etc., narcotics, marihuana; the administration of the
National Firearms Act and the Federal Firearms Act; and the adjust-