Funding Through Reimbursement – IRS Statistics of Income Division budget – Brief Article

Funding Through Reimbursement – IRS Statistics of Income Division budget – Brief Article – Statistical Data Included

Under section 6108 of the Internal Revenue Code, SOI is allowed to augment its budget with monies it receives from outside sources. In practice, these outside sources are mainly other Federal statistical agencies, which are authorized to receive statistical services or specific tax return information for certain statistical programs or purposes. These programs and services are described in Code section 6103. Monies received as reimbursement amount to an estimated $1.6 million in FY 2001, about the same as in FY 2000, and are paid through interagency transfers of funds.

Outside funding received from the Department of Commerce for the Bureau of Economic Analysis (BEA) partially pays for the SOI annual partnership and nonfarm sole proprietorships programs. BEA requires these two programs to help estimate unincorporated business profits for the National Income and Product Accounts. (The resulting SOI data are published in the SOI Bulletin.) BEA also pays for tabulations of corporation income tax return preliminary data. Work done for BEA in FY 2001 will account for about three-fourths of SOI’s reimbursable funding.

In addition, to reduce costs and reporting burdens to the public, the Bureau of the Census, also in the Commerce Department, relies heavily on tax return data obtained with SOI assistance. This assistance consists of acting as the liaison between Census and the rest of IRS. In FY 2001, Census Bureau needs require IRS to produce Business Master File entity records and monthly updates, as well as extracts of payroll and employment tax return data and data from the Individual Master File. (The IRS organizations that produce this information for the Census Bureau also receive reimbursement for their efforts.)

Aside from funding received from other Federal statistical agencies, SOI continues to undertake comparatively small, ad hoc, reimbursable projects for private organizations and individuals. These projects include producing public-use data files or special tabulations, usually of individual income tax return data. Included are tabulations showing distributions of individual income and measures of population mobility by county and State, based on the personal exemptions reported on income tax returns and year-to-year changes in the tax return mailing address. These tabulations are produced by the Census Bureau for SOI, based on the Census extract of the IRS Individual Master File.

COPYRIGHT 2001 U.S. Government Printing Office

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