23.0 Rent. communications, and utilities

3.719 10.465 35.096 46.818

13.919

240 Printing and reproduction...

25 0

Other services.

113, 154 26,621 28.571 7,015 11.049

20

A narrative statement, describing the purpose of this request, and proposed appropriation language are included in Part III of this volume.

COMPLIANCE

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 and twenty-three of which one hundred] two hundred and three of which scrent-right 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; [$620,430,000] $803,300,000 (Title 26 U.S.C.; Treasury Department Appropriation Act, 1974.)

Program and Financing (in thousands of dollars)

This appropriation provides for detecting and correcting noncompliance with the tax laws, and for meeting the Internal Revenue Service's responsibilities in special law enforcement programs.

Additional funds requested for 1975 are necessary to strengthen the Service's ability to assure equitable application and adequate enforcement of the tax laws and thus maintain the very high rate of voluntary compliance. This requires expansion of the audit and tax fraud investigation programs, plus additional staffing for technical rulings and legal services.

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 revenue 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. Tar fraud and special investigations.-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 warranted; end assists in the preparation and trial of criminal tax cases. It is responsible for directing Service participation in the drive against organized crime, and against narcotics traffickers.

3. Taxpayer 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.

SELECTED WORKLOAD DATA

26.0 Supplies and materials. 31.0 Equipment

42.0 Insurance claims and indemnities. Total costs, funded. 94.0 Change in selected resources.

6. 128

5.308

6,150

9.148

8,323

12, 126

Total number of permanent positions.
Average paid employment.
Average GS grade.

7.3

7.3

7.3

$10,154

$10.638 $10,638

60

1.9

1.9

This revolving fund was established pursuant to section 112(a) of the Federal Tax Lien Act of 1966 solely to serve as the source of financing the redemption of real property by the United States. In collecting delinquent taxes, 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 lien holder's equity, thereby leaving no proceeds to apply against delinquent taxes. Under these circumstances if the Government buys 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.

The increase requested will enable the Internal Revenue Service to protect adequately the Government's interest in collection cases involving tax liens on property undergoing forced sale.

Revenue and Expense (in thousands of dollars)

ALLOCATIONS RECEIVED FROM OTHER APPROPRIATION ACCOUNTS Note-Obligations incurred in 1974 under allocations from other accounts are included in the schedules of the parent appropriation as follows: Executive Office of the President. Economic Stabilization Activities, "Salaries and expenses."

Public enterprise funds:

FEDERAL TAX LIEN REVOLVING FUND

For increased capitalization of the revolving fund for redemption of real property, established by the Federal Tax Lien Act of 1966 (26 U.S.C. 7810(a)), $500,000.

Program and Financing (in thousands of dollars)

Net income or loss for the year..

Analysis of Changes in Government Equity (in thousands of dollars)

10 Redemption of real property (costsobligations) (object class 32.0)