TREASURY, POSTAL SERVICE, AND GENERAL JUNE 28, 1971.-Ordered to be printed Filed, under authority of the order on June 28, 1971 Mr. MONTOYA, from the Committee on Appropriations, REPORT [To accompany H.R. 9271] The Committee on Appropriations, to which was referred the bill (H.R. 9271) making appropriations for the Treasury Department, the U.S. Postal Service, the Executive Office of the President, and certain independent agencies for the fiscal year ending June 30, 1972, and for other purposes, reports the same to the Senate with various amendments and presents herewith information relative to the changes recommended: SUMMARY OF THE BILL The bill provides a total amount of $4,740,702,690, which is $826,756,210 under the appropriations for 1971, $68,513,310 under the revised estimates for 1972, and an increage of $253,026,500 over the appropriations in the House bill totaling $4,487,676,190. The following tables summarize the amounts of new budget (obligational) authority recommended in the bill for fiscal year 1972 compared with amounts appropriated to date for fiscal year 1971 and with the revised 1972 budget estimates and House bill. The tabulation by items of appropriation is included at the end of the report. Includes proposed amendment for an additional $7,500,000 (H. Doc. 92-133), not considered by House. The Committee recommends an appropriation of $797,500,000 for Compliance activities of the Internal Revenue Service for fiscal 1972. The amount allowed provides (1) for assistance to taxpayers in understanding and complying with the tax laws and (2) for detecting and correcting instances of noncompliance. The additional funds allowed for 1972 are necessary to strengthen the compliance enforcement capacity of the tax administration system and permit progress toward program levels which will insure a continued high degree of voluntary compliance with the internal revenue laws. The Committee's recommendation includes the requested increase of $7,500,000 and 541 positions to permit the Internal Revenue Service to launch a systematic drive, in cooperation with other Federal, State, and local law enforcement agencies, against distributors and financiers involved in narcotics traffic for possible civil or criminal violations of the Internal Revenue Code as requested by special amendment for the President's all-out antinarcotic effort. A total of 50,020 permanent positions was requested, an increase of 3,281 over 1971. The Committee has no objection to this proposed increase in personnel provided it can be accomplished within the funds. allowed. 1 Includes capital outlay as follows 1975, $375 thousand, 1976, $340 thousand, TQ, 185 thousand, 1977, $155 thousand. This appropriation provides for the overall planning and direction of the Internal Revenue Service, for management of the Service's support programs and for internal audit and internal security. 1. Executive direction. This activity sets policies and goals; provides the research and planning necessary for orderly and effective accomplishment of the Revenue Service's mission; provides leadership and direction in the execution of plans; and provides for the administrative support of all operations. 2. Internal audit and security-This activity establishes and verifies maintenance of quality controls in the Revenue Service. It provides a continuing and independent review of all Revenue Service operations, thereby assuring the Commissioner and operational managers that appropriated funds are spent only for authorized purposes, that tax revenues are properly safeguarded, and that public confidence in the integrity of Revenue Service employees is maintained. Personnel compensation 1,272 11.3 Positions other than permanent ུཀྐཐ། བྷཎྜཎྜཀུ༠ ཡ 1,630 13 37 75 101 142 23 25.0 Supplies and materials.. 99.0 Total obligations.. 1.871 150 1,977 48.677 1.774 100 1,771 1,633 Full-time equivalent of other positions. 106 100 Average paid employment. 1.867 Average 65 grade. Average GS salary. SI8,621 Average WB salary.. $12.223 $19.387 $12, 103 10 32 $19.538 $13.380 79 1 80 8 62 12.40 $32.663 ACCOUNTS, [COLLECTIONS] COLLECTION AND TAXPAYER SERVICE For necessary expenses of the Internal Revenue Service for processing tax returns, revenue accounting, providing assistance to taxpayers, securing unfiled tax returns, and collecting unpaid taxes: hire of passenger inotor vehicles, and services of expert witnesses at such rates as may be determined by the Commissioner; including not to exceed $10,000,000 for employees on temporary appointments and not to exceed $183,000 for salaries of personnel engaged in preemployment training of data transcriber applicants, [8771,500,000 $789,900,000. [For "Accounts, collection and taxpayer service" for the period July 1, 1976, through September 30, 1976, $192,875,000.] (Title 26 U.S.C; Treasury Department Appropriations Act, 1976.) Program and Financing (in thousands of dollars) Includes capital outlay 3 follows 197, $8,582 thousand, 1976, $,714 thousand, TQ. $1,428 thousand, 1977, $3,876 thousand This appropriation provides for processing tax returns and related documents, and maintaining accurate, current taxpayer accounts by means of an automated system. It also provides for taxpayer assistance and for collecting delinquent taxes and securing unfiled returns. Statistical reporting responsibilities of the Internal Revenue Service also come under this appropriation. 1. Data processing operations.-This activity provides for all actions associated with the mailing out of tax return forms and instructions, receipt of completed returns and payments, deposit of the payments, and verification through an automated master file system of the accuracy of information provided on the tax returns. It provides for payment of refunds, offset of refunds against delinquent accounts, issuance of notices that payments are overdue, identification of possible nonfilers for investigation, and assistance in the selection of tax returns for audit. 2. Collection. This activity is responsible for collecting unpaid taxes and securing unfiled returns. 3. Tarpayer service. This activity aids voluntary compliance with Federal tax laws on the part of all taxpayers by informing them of their responsibilities and by providing service which will assist them in meeting their obligations. 4. Statistical reporting. This activity prepares statistical information on income and on various features of the tax system, performs other statistical research, and forecasts the number of tax returns to be filed by type, size, and geographical area. 2120 23.0 Travel and transportation of persons.. Rent, communications, and utilaties 24. D Printing and reproduction. 25.0 Other services 26.0 Supplies and materials, 31.0 Equipment.... 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 [three hundred and twenty-six] ninety-one of which one hundred and ninety-eight] ninety-one shall be for replacement only, for policetype use and hire of passenger motor vehicles and services of expert witnesses at such rates as may be determined by the Commissioner; [$836,000,000] 8834,900,000, [For "Compliance" for the period July 1, 1976, through September 30, 1976, $207,500,000] (Title 26 U.S.C., Treasury Department Appropriations Act, 1976) Program and Financing (in thousands of dollars) Identification code 15 45-0913 0-1-803 1. Audit of tax returns. 1975 act. This appropriation provides for detecting and correcting noncompliance with the tax laws. revenue 1. Audit of tar returns. This activity provides for a selective examination of tax returns to see if taxpayers have properly complied with the internal laws. It corrects errors and explains corrections to the taxpayers. It also makes determinations as to whether certain organizations or funds are exempt from taxation. 2. Tax frand and special inrestigations.-This activity provides for enforcement of the criminal statutes relating to violations of tax laws. It investigates cases of suspected intent to defraud, recommends prosecution as ranted, and assists in the preparation and trial of criminal tax cases. war 3. Tarpayer conferences and appeals. This activity provides for administrative consideration and settlement of taxpayer appeals of audit findings. 4. Technical rulings and services. This activity develops tax return forms, instructions, and guides; issues rulings and opinions as to application of the tax laws, and meets with taxpayer groups to review and resolve special tax problems. 5. Legal services. This activity comprises the legal counsel and legal assistance needed by the Service to administer and enforce the internal revenue laws. 6. Employee plans. This activity monitors private pension plans to insure compliance with the Employee Retirement Income Security Act of 1974. 7. Exempt organizations. This activity determines whether organizations seeking tax-exempt status meet certain tests to qualify, and examines tax returns of those organizations to insure compliance with such an exemption. It also examines the returns of private foundations to insure payment of proper excise taxes. SELECTED WORKLOAD DATA Program by activities: Direct program 152, 543 2. Tax fraud and special investigations 26.471 3. Taxpayer conferences and appeals 10.144 38, 767 [In thousands) 4. Technical rulings and services Legal services 6 Employee plans. 22.752 1975 act. 7. Exempt organizations.. Total direct program.. 802, 263 853 955 215, 840 834,900 Special enforce nent program investigations Appellate work unit disposals... 1.0 Reimbursable program: Total technical projects. 1. Audit of tax returns Total counsel cases 2. Tax fraud and special investigations 63 3 Taxpayer conferences and appeals 10 EP deter nination letters, exa..inations, and investigations 5. Legal services 6. Employee plans.... EO deter nation letters, examinations, and investigations 7. Exempt organizations. |