Table Of Content

Theas. 7V?*-s. rW 63^>( J-fistory ofthe 144: £an Cfimncisco ^District -.CHALLENGE AND CHANGE LIBRARY UBR«R?-1990 "MM ROOM 503y 503d APR 09 1996*PR 0v 1995 TREASURY dIMWeWEPARTMENT IRS HISTORICAL STUDIES Publishedaspartofacontinuingseriesofhistorical studiesto preserveand disseminatethe historyofthe Internal RevenueServiceand taxadministration in the I'nited States. 1)cpartmentoftheTreasury Internal RevenueService 1 Qontents 5 Foreword 7 Preface 9 Acknowledgments 1 The Beginning: A Wartime Birth 15 The Early Years 23 The Name ofthe Game 29 Shaking the Foundations 35 World War I and Prohibition: Additional Responsibilities 41 A Harsher Reality 47 World War II: Responding to New Demands 55 Scandals, Reform and Reorganization 61 The Dawn ofAutomation and Equal Opportunity 69 Meeting the Challenges ofthe Future 74 Appendix 1: San Francisco Directors and Collectors 75 Appendix 2: The Geography ofthe San Francisco District 77 A Note on Sources 79 Picture Credits 81 Index (foreword some instances ofpersonal failings and corruption under the old politi- cal patronage system and many examples ofindividual and District- wide successes as part ofthe career civil service. Today, the civil service profes- sionals who are the heart ofthe Internal Revenue Service and the San Francisco District can be proud to be part ofa modern agency that plays an essential role in American government. The progress we have made in doing our difficultjob bet- ter is a direct result ofthe contribu- tions made by every individual employee, in everyjob, no matter how big or how small. I hope you will enjoy reading about the history ofthe San The San Francisco District ofthe Francisco District and the story of Internal Revenue Service has come the Internal Revenue Service. a longway since its inception in 1862 as one offive collection dis- tricts established by President Lincoln in the young state of California. Over the years the District grew, at one point compris- ing most ofCalifornia plus Frank Miceli Nevada. Though its boundaries Director, have changed many times, one San Francisco District thing that has not changed has Internal Revenue Service been the District's commitment to the critically important job oftax administration. Following the 125th anniversary ofthe Internal Revenue Service in 1987, the San Francisco District decided to retrace our history to document the path ofgrowth and development. What was uncovered was a story ofstriving and achieve- ment built on a mixed foundation: Preface This history ofthe San Francisco National Office History and Archival District is the result ofa research Services Program with the primary project initiated in the District and goal ofdisseminating knowledge completed with the assistance ofthe about the history oftaxation in the National Office History and Archival United States and the history ofthe Services Program. The primary IRS as a vital Federal institution. research and writing was conducted The reader ofthis history will gain by Ruth Sherman, on temporary insight into IRS operations on a local assignment as historian to prepare level as well as an appreciation for the history ofthe District. the significant impact ofthe evolu- Additional research and editing tion oftax policy on all American's was conducted by Beverly Weberof lives. the San Francisco District. The final document was completed by Shelley Davis, the IRS historian in Washington, D.C. The project included research at Internal Revenue Service offices in California and the National Office; at the National Archives Pacific Sierra Region in San Bruno, California and in Washington, D.C; and at libraries and other significant historical facilities throughout Northern California. A series of interviews with former and long- time employees ofthe San Francisco District also helped bring to life many ofthe District's more recent developments. Through this project the San Francisco District has retrieved and recorded crucial links to the past that shaped the District we know today. Concurrently, it has also docu- mented a unique story ofindividu- als, innovations, and change that contributed greatly to the development and growth ofthe Internal Revenue Service. This history is part ofan ongoing series ofhistorical studies prepared under the direction ofthe IRS