UNITED STATES OF AMERICA

LETTER OF TRANSMITTAL

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 22, 1957.

SIR: In compliance with the provisions of section 6108 of the Internal Revenue Code of 1954, which states that statistics shall be published annually with respect to the operation of income tax laws, I have the honor to submit this report for Statistics of Income-1954, Individual Income Tax Returns for 1954. Information relative to sources of income, items of deductions, exemptions, tax credits, and tax liability is tabulated by various classifications of income and taxpayers.

Emphasis has been given to several new features of the 1954 Code, such as exclusions from gross income for sick pay and dividends, retirement income and medical costs for significant age groups, contributions in excess of 20 percent of adjusted gross income, and the marital status for a surviving spouse. As the amount of taxable income was either reported or computed for each type of individual return, it was possible for the first time to classify the returns by the size of the tax base and to group them according to the applicable tax rate. Respectfully,

HONORABLE ROBERT B. ANDERSON,

Secretary of the Treasury.

RUSSELL C. HARRINGTON, Commissioner of Internal Revenue.

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