DEPARTMENT OF THE TREASURY situations arise where it is to the Government's advantage to buy property on which it has a lien when the property is sold at a foreclosure sale brought by the holder of a lien which is superior to the Government's. The advantage arises when the property is worth substantially more than the first lienholder's equity, but is being sold for an amount that barely covers that equity, thereby leaving no proceeds to apply against delinquent taxes. Under these circumstances if the Government buy the property and subsequently puts it up for sale under more advantageous conditions, it is possible to realize sufficient profit on the transaction to fully or partially collect the amount of taxes due. The revolving fund is reimbursed from the proceeds of the sale in an amount equal to the amount expended from the fund for the redemption. The balance of the proceeds are applied against the amount of the tax, interest, penalties, and additions thereto, and for the costs of sale. The remainder, if any, would revert to the parties legally entitled to it. 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. This 1976 appropriation request provides for maintaining at adequate levels both the Service's support programs and those programs concerned with sound internal procedures and employee integrity. 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. Object Classification in thousands of dollars) Ideatifcation code 15-45 0911-0-1-803 Obligated balance, start of year 74 Obligated balance, end of year 1974 actual 1975 est. 1976 est 229 229 229 229 A narrative statement, describing the purpose of this request, and proposed appropriation language are included in Part 111 of this volume. ACCOUNTS, COLLECTION AND TAXPAYER SERVICE For necessary expenses of the Internal Revenue Service for processing tax returns, revenue accounting, providing assistar ee to taxpayers, securing unfiled tax returns, and collecting unpaid taxes, hire of passenger motor 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, [8712,600,000] $772,881,000 For "Accounts, collection and taxpayer service" for the period July 1, 1976, through September 30, 1976, $193,805,000. (Tule 26 U.S.C, Treasury Department Appropriations Act, 1975.) Program and Financing (in thousands of dollars) Personnel compensation: Permanent positions. Positions other than permanent 135 115 Other personnel compensation. Total personnel compensation. 1. Data processing operations. 12.1 Personnel benefits. Civilian 2. Collection. 21.0 Travel and transportation of persons 3. Taxpayer service 22.0 Transportation of things. 4. Statistical reporting. 24.0 Printing and reproduction. 70 250 Other services.. 310.016 390,051 400 469 190.357 218,883 237.288 83.253 101.895 12913 10.606 12.834 13.211 594.232 723.663 772.881 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 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, which became a separate organization apart from collection in 1975, aids voluntary compliance with Federal tax laws on the part of all taxpayers by informing them of their responsibilities 23.0 Rent, communications, and utilities. 24.0 Printing and reproduction... 25.0 Other services. 21.0 Travel and transportation of persons. 13.279 13.502 16.147 22.0 Transportation of things 11.139 14.474 16.539 23.0 Rent, communications, and utilities. 50.956 107, 185 114,925 24.0 Printing and reproduction 33.723 25.0 Other services 26.0 Supplies and materials. 31.0 Equipment 42.0 Insurance claims and indemnities. 13 20 20 |