September 02, 1997
IRS Issues Summer
Statistics of Income Bulletin
WASHINGTON - Pre-tax profits
reported on the 4.3 million U.S. corporation income tax returns for 1994 increased to
$577.3 billion, 15.9 percent more than for 1993, according to the Summer 1997 issue of the
Internal Revenue Service quarterly publication, the Statistics of Income Bulletin. The
7,043 returns of corporations with assets of $250 million or more accounted for nearly 77
percent of the total. Reflecting the increase in profits, total income tax after credits
(which includes the "alternative minimum tax") increased from $119.9 billion to
$135.5 billion. However, alternative minimum tax continued to decline, from $4.9 billion
for 1993 to $4.5 billion.
For 1994, there were 54,620 foreign-controlled domestic corporations (FCDC's). Their
pre-tax profits nearly doubled, compared to 1993, from $11.2 billion to $21.9 billion,
while their U.S. income tax liability grew from $8.2 billion to $10.1 billion. In terms of
total receipts, corporations controlled by a Japanese entity led with 29 percent, followed
by those controlled by a entity in the United Kingdom, 14 percent. About three-quarters of
all FCDC's were manufacturers or wholesalers.
The 3,073 "Foreign Sales Corporations" (FSC's) in existence in 1992 were
designed to promote the export of products and services of their shareholders (mostly U.S.
parent corporations), by exempting part of their foreign trade income from U.S. taxation.
FSC's generated $15.6 billion in "total income," of which $9.6 billion was
tax-exempt. They reported $0.8 billion in U.S. income tax and distributed $5.3 billion to
their parent shareholders.
Profits reported by the Nation's 16.4 million nonfarm sole proprietorships grew to
$169.3 billion for 1995, but this was only 1.5 percent more than for 1994, when profits
were 6.6 percent higher than the year before.
The Statistics of Income Bulletin is available from the Superintendent of Documents,
U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual
subscription rate is $33 ($41.25 foreign); single issues cost $15 ($18.75 foreign). For
other Statistics of Income (SOI) data, write the Director, Statistics of Income Division
CP:R:S:S:P, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; dial the
SOI electronic bulletin board at (202) 874-9574; check the World Wide Web at
http://www.irs.gov; or telephone the SOI statistical information services office
at (202) 874-0410 (or, by e-mail, [email protected]; by FAX, (202) 874-0964).
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