THE FINAL COUNTDOWN ON INCOME TAXES : INTERNAL REVENUE SERVICE LAGUNA NIGUEL DISTRICT

For fiscal year 1987:

-- 23.1 million tax returns were filed in the state of California during fiscal 1987 (tax returns for 1986). Laguna Niguel contributed 28 percent of those returns.

-- Based on total number of returns filed, Laguna Niguel is the fourth-largest district in the nation.

-- 6.4 million tax returns were filed in the Laguna Niguel District.

-- Almost 3.4 million of those returns were from individual taxpayers (the remainder come from various types of businesses.)

-- Total revenues for the state of California were $101.4 billion.

-- Total revenues for Laguna Niguel were $20.5 billion.

-- $19 billion of that money came from individual income and employment taxes.

-- Total amount refunded to taxpayers in the district was $3.2 million.

-- Total refunds issued to individuals totaled $2.7 million.

-- Orange County residents make up approximately one quarter of the population in the Laguna Niguel District.

-- Estimated filing statistics for Orange County:

Total tax returns filed . . . $ 1.6 million

Individual tax returns filed . . . $ 0.9 million

Total taxes paid . . . $ 5.4 billion

Individual taxes paid . . . $ 5.0 billion

Total refunds . . . $ 0.8 million

Refunds to individuals . . . $ 0.7 million

Source: Internal Revenue Service, based on information from the draft copy of the 1987 Commissioner’s Annual Report, released in January, 1988.

Facts about the new Federal Tax Laws The following deductions, credits and exclusions have been eliminated:

The capital gains deduction.

The deductions for state and local taxes.

The dividend exclusion of $100 for individuals and $200 for couples.

The political contributions credit.

The deduction for adoption expenses.

The deduction for two-earner married couples.

The Individual Retirement Account deduction is eliminated for single taxpayers with adjusted gross income of at least $35,000, or $50,000 for married taxpayers who are filing jointly, who are covered by an employer retirement plan. Those falling below these amounts are entitled to either a partial or a full deduction depending on the level of their adjusted gross income.

Income averaging.

Personal interest, such as car loan or credit card interest, will be phased out beginning this year and will be completely eliminated by 1991.

APPROXIMATE LOCAL INTERNAL REVENUE COLLECTIONS, FISCAL YEARS 1984-1987****

The Laguna Niguel District of the Internal Revenue Service encompasses Imperial, Orange, Riverside, San Bernardino and San Diego counties as well as Long Beach and the South Bay area of Los Angeles County. According to the IRS’s 1987 population statistics, approximately 8.5 million people live in the entire district with about one-fourth of that total residing in Orange County. Therefore, about one-fourth of the amounts listed below for the district can be considered to have come from Orange County.

(In thousands of dollars)

Total Corporate IRS Income Individual and Estate Collections tax Employee Taxes Tax 1984 L.N. District $14,088,541 $1,343,244 $12,289,301 $155,879 State Total 76,623,643 7,520,717 63,974,910 791,976 1985 L.N. District 16,495,947 1,780,114 14,334,827 142,364 State Total 85,348,500 7,860,559 72,852,347 785,929 1986 L.N. District 18,491,624 2,071,823 16,003,887 219,812 State Total 89,604,350 7,833,796 77,219,806 988,675 1987**(estimated) L.N. District 21,490,185 2,105,467 18,955,836 184,814 State Total 101,445,378 10,781,385 86,683,281 1,014,797

Manufacturing Retail Misc. *Unclass. Gift Alcohol Tobacco Excise and Special Excise Excise Tax Taxes Taxes Taxes Fuel Taxes Taxes Taxes 1984 L.N. District $1,980 $737 $8 $58,285 $33,412 $127,541 $78,155 State Total 13,403 793,344 2,087 1,249,988 177,341 1,872,944 226,933 1985 L.N. District 6,395 3,749 1 56,757 47,733 141,974 (17,967) State Total 43,763 801,545 2,175 1,248,476 247,874 1,604,055 (98,222) 1986 L.N. District 9,419 6,408 1 56,531 52,353 113,098 (41,709) State Total 55,293 923,981 1,623 1,509,174 293,400 1,891,966 (1,113,360) 1987**(estimated) L.N. District 8,687 ***1,050 -- 70,576 67,539 93,379 2,836 State Total 36,655 ***804,052 -- 1,392,075 318,668 281,402 133,065

****The Internal Revenue Service’s fiscal year runs from October 1 through September 31.

***Represents alcohol and tobacco combined. Separate figures were not included in the preliminary draft of the 1987 annual report.

**This year’s figures are estimates. The Internal Revenue Service has not yet completed tabulating the figures for its 1987 annual report, which will have the total revenues for the 1986 tax year.

*Negative numbers result from the classification of amounts previously reported as unclassified.

Source: Internal Revenue Service

SPECIAL TAX SERVICES

Deaf taxpayers with access to TV/Telephone TTY equipment may call (800) 428-4732 for free telephone assistance.

Walk-in service is available at most Internal Revenue Service offices for individual taxpayers who are preparing their own returns. It is available Monday through Friday from 8 a.m. to 4:30 p.m. at these local Internal Revenue Service offices: 34 Civic Center Plaza in Santa Ana and in the Chet Holifield Federal Building, 24000 Avila Road in Laguna Niguel.

Also, taxpayers can call the IRS for help toll-free at (800) 424-1040.

To order forms only , call (800) 424-3676.

For recorded tax information, call Tele-Tax at (800) 554-4477. If you have a push button telephone you can punch in a three-digit code for the topic that you need explained. A complete list of the codes appears in the federal tax package. An operator will assist those with rotary telephones. Push-button service is available 24 hours. Rotary service is available Monday through Friday 8 a.m. to 4:30 p.m.

Source: Internal Revenue Service