BUSINESS Firm Fries to Revive Owner of Quarry School to Start] «# ■ ' Maine Sardine Market Promises a Clean Job in a U G U St? Don't Ignore Income Tax Penalties

20 - MANCHESTER HERALD. Mon,, Feb. 14, 1983 I BUSINESS Firm fries to revive Owner of quarry School to start] «# ■ ' Maine sardine market promises a clean job in A u g u st? Don't ignore income tax penalties ... page 4 ... page 9 ... page 3 portion of the understatement attributable to the percent a month penalty is less. ' (This is the seventh in a 12-part series on saving on treatment of 1) any item for which you believed there There is no penalty, though, if your failure to file on* 1982 and 1983 taxes.) was substantial authority, or 2) any item for which time was due to a -reasonable cause. > Manchester, Conn. The 16 percent interest rate charged you for you adequateiy disclosed the relevant facts on your Clear tonight; underpaying your income tax or paid to you on Your CLEAR WAV OUT: If you can’t get your return^ Tuesday, Feb. 15,1983 refunds by the Internal Revenue Service probably will return. sunny Wednesday If you have bought into tax shelters, there are ready to file by April 15, 1983, ask for an automatic drop effective July 1, 1983 (although there is no Money's Single copy 25 cents tougher«rules for applying the penalties to any tax extension of time to file by filing a request on Form . — See page 2 certainty about this, as there has been none on past underpayments caused by your tax shelter. And 4868. By tiling an extension request on Form 4868, you J interest-rate gyrations). That's because it will be Worth another new penalty was added for 1982. will get an automatic extension to file until Aug. tS,r Hrratb based on the average bank prime rate for the six Sylvia Porter This one can penalize you if you file your return late 1983, a four-month extension. ■! months ended March 31, 1983. For Jan.. 1. 1984, the and also have an underpayment of tax whether WARNING: This filing extension doesn’t permit;; average will be based on the prime rate for the six because of y ur late payment of a portion of the tax on you to defer payment of tax due on your 1982 return.» mcaths ended Sept. 30, 1983. Be sure to pay at least 90.i]ercent of tax due on your However, whatever the rate becomes. It will be , the return, Oi because of a late assessment by the IRS. 1982 tax (line 59, Form l(()i)) With I^rm 4868. This way {, compounded daily, so you can expect a hefty interest you Jrom this penalty, since in order to have a tax you are only charged with intereiM on your remaining < rate charge on taxes you owe the'IRS, no matter what understatement of at least $5,000, you must have IN THE PAST, there was no penalty for late filing if unpaid tax. ' the simple rate. While you get the benefit of these high understated your income or overstated your expenses your full tax already had been paid either through (or both) by substantially more than $5,000. withholding or by your estimated tax payments, etc. If with Form 4868 you pay less than 90 percent of the ‘ Lebanese rates if you are entitled on a refund, most of us pay tax that was due April 15, 1983, then in addition to ’ interest on underpayments to the IRS rather than If there was underpayment, you were hit by a penalty JUST HOW MUCH more will depend on your tax of 5 percent of the underpayment per month, up to 25 interest on the unpaid portion you also will be charged ! receive interest on overpayments. a penalty of of 1 percent a month on the amount of 1 In addition to this charge on taxes you owe the IRS. bracket. For instance, if you are in a 30 percent percent of tax due. tax that was unpaid as of April 15, 1983. i you also will be hit by a new, extra 10 percent penalty bracket or brackets, you would have to understate or The new provision sets a minimum under this IN SUM: These penalties are adding up! Ignore ai (plus interest on that penalty). If the IRS finds that overstate more than-$15,000 of income or expenses. existing penalty. If you file your 1982 return more than your own peril! you understated your tax by more than 10 percent of But even if you have a tax understatement of more 60 days late and have an underpayment of tax, you can test power » • the correct tax and the amount of the understated tax than $5,000, you may be protected from the peanlty be hit with a penalty of $100 or the amount of the (Next: Good and Bad Tax Law changes for 1983) . is more than $.6,000. That $5,000 figure protects most of under another rule. No penalty is assessed for the underpayment, whichever is less — if the regular 5 By United Press International brother, Beshir, there have been doubts about Amin’s ability to Lebanese army troops moved control its commanders. Beshir 5 Now is time to buy into Christan east Beirut today in a was assassinated Sept. 14 before he maJor test of the government’s would be inaugurated as Leban ability to forge national unity by on’s new president. reasserting control over the “ It is your responsibility to stronghold of the Phalange militia. salvage and liberate Lebanon," In Israel, West Bank settlers Gemayel said in a speech to into the stock morketl Lebanese troops at Beirut Interna rode through a Palestinian refugee camp in jeeps and warned resi tional Airport, where U.S, Marine By David R. Sargent Nor is there a dearth of fa vorable were predicted on the anticipated dents they could be deported to peace-keeping troops also are factors on which to found investor economic upcycle. Once the recov Jordan in retaliation for attacks on deployed. M ilitary sources said U.S., QUESTION: I need some ad optimism. Signs of recovery in the ery is in full swing, then, stocks Jews, Israel Radio said. It must be French and Italian units of the vice. 1 have a few thousand dollars critical auto and housing sectors of may be due for some reaction on For the second straight day. the multinational peace-keeping force saved, above a $10,000 cash re the economy appear at last to have the downside. Howeyer, growth; refugee camps of Amari and lust right would Join the Lebanese troops serve for emergencies, which I signaled a turn' in the economic potential beyond the recover^' Kalandia, near Ramallah, were within two days. AAary Pruette would like to invest in the stock cycle from recession to recovery. cycle should continue to lure; placed under curfew in response to market. Is this the time to buy Production increases at, the three investors into the market, and I stone-throwings that coincided checks sensing ele LEBANESE REPORTERS said stocks in your opinion, and if so. maJor automakers resulted in would argue you to take advantage with the opening of the meetJng of ments for quality at they later saw army units taking what specific stocks do you recom worker callbacks, reversing the of any dips to accumulate sound the Palestinian National Council the Borg-Warner up positions in at least IJ spots in mend? E.S., California unemployment trend — tradition equities. meeting in Algiers. east Beirut and its northern manufacturing ally a “ lagging indicator’’ of the With loudspeakers mounted on Specific stocks recommended', suburbs, which have been under plant in Cary, N.C. ANSWER: Yes —thetimetobuy economy’s cycle. Building con vehicles and jeeps, the Jewish for purchase include Abbott Labor-; the control of Christian Phalange The elements (fore stocks is now. Stocks have bounced struction contracts also ticked settlers blared warnings that atories, Colgate-Palmolive, and; militias since,the 1975-76 civil war. ground) are used in back from a perfunctory market upward and reached a three-year “ they would see to it that rock- Minnesota Mining & Manufactur-! Gemayel’s power has not ex correction at January month-end, high. throwers would be expelled to electronic pressure ing for the growth investor; and tended beyond Moslem west Beirut credited to such factors as high Almost simultaneously, the fo Jordan and the homes of terrorists sensors that control American Brands,. Exxon, and since he took office. interest rates, stubborn unemploy cus on the federal deficit figures would be blown up and not just vehicle fluid United Telecommunications for Phalange militias were charged ment, and general bearishness for fiscal year 1983 and 1984, and a sealed off,’’ the radio said. generous income plus growth. by the Israeli commission of pressure. about the state of the domestic new wave of Treasury financing, inquiry into the Sept. 16-18 massa economy. Worrisome OPEC polit are pushing interest rates slightly THE FIRST OF 3,000 Lebanese All six of these issues (traded cre in two Beirut refugee camps UPI photo ics also contributed to a pessimis higher, as might be expected once regular army troops moved into F N'VSE) are selling at reasonable with “ direct responsibility'' for the tic outlook. the economy officially bottoms. the eastern sector in the morning P-E levels and have solid earnings killings of hundreds of men, Undaunted yet, the market is The Federal Reserve, mean on orders from Lebanese Presi and dividend growth records over, dent Amin Gemayel. Twelve hours women and children. showing itself capable of digesting while, has managed to win inves the past decade.

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