QUESTIONS FROM THE HOUSE WAYS AND MEANS SUBCOMMITTEE

In order to conduct a meaningful review of the penalty system, the Subcommittee requests the following information:

1

RESPONSE:

A statistical analysis of the broad structure of the
present system of civil penalties. The information

should be broken down by year and include, at a minimum,
the following:

a. Code section and description of penalty.

b. Number and dollar amount of assessments for each
penalty provision.

Number and dollar amount of abatements for each
penalty provision.

Attached are copies of Table 14 from the Commissioner's
Annual Report for the period 1978 through 1986 and a copy
of the draft table for 1987. Also attached is a copy of
statistics by penalty section, where identifiable,
showing the information in the form requested by the
Subcommittee for fiscal years 1983 through 1987.

CIVIL PENALTIES ASSESSED AND ABATED

Fiscal Years 1978-1987

(Excerpted from IRS Annual Reports)

Table 13.-Civil Penalties assessed and abated, fiscal year 1978 (Dollars in thousands)

year.

Notes: Amounts may not add due to rounding. With the exception of ES, penalties can apply to any tax year. Abatements can apply to any tax

Includes Taxpayer Identification Number, miscellaneous. Failure to Report Tips.

Includes Forms 1120, 990C, 990T.

3 includes daily delinquency, miscellaneous.

Includes Forms 940, 941, 942, 943. CT-1.

Includes Estimated Tax daily delinquency, negligence.

1 Includes Forms 1041A, 990PF, 4720, 990, 720.

Includes Estimated Tax, miscellaneous, negligence.

Period covered is January 1, 1978 through September 30, 1978. These penalties are from processing of individual returns only and do not reflect other penalties assessable under the Tax Reform Act of 1976. Code Sections 6694 and 6695. Includes Forms 1041, 1065, 5329, 11, 118, 1C. 730 2290, 46.3

10 Includes Estimated Tax, daily delinquency, miscellaneous.

* Less than $500.

Fiscal Year 1978

Notes: Amounts may not add due to rounding With the exception of ES penalties can apply to any tax year Abatements can apply to any tax year

includes Taxpayer identification Number. Failure to Report Tips Miscellaneous

•Period covered is January 1, 1979 through September 30, 1979 These penalties are from processing of individual returns on and do not reflect other penalties assessable under the Tax Reform Act of 1976, Code Sections 6694 and 6695 Includes Forms 1041. 1065, and Individual Retirement Account File

Fiscal Year 1979

Notes: Amounts may not add due to rounding With the exception of estimated tax penalties can apply to any tax year
Abatements can apply to any tax year

1.552.868

24 340 105.978 42.303 19.593.705 2.112.450

6666 65.025

2.028,717

21.799 559.501

10 781 120.953 17.545.048

17 185

40.584

Penalties are from processing of individual returns only and do not reflect other penalbes assessable under the Tax Reform Act of 1976 Code sections 6694 and 6695

Includes Forms 1041 1065 and individual retirement account file

Fiscal Year 1980