Retroactive Election of Intangibles Amortization May 15, 1994 IRS Steps Up Audits! The Internal Revenue Service is pushing ahead with payroll tax audits around the country. The intent is to classify as many independent contractors as employees so employers will be liable for payroll taxes. Seems the government wants to replenish the unemployment insurance fund. ATT at your Service Have you ever stepped up to a pay phone and discovered it is not a Bell phone and you just know you are about to pay through the nose. AT&T rides to your rescue with a new service whereby all people can charge calls to their AT&T or local telephone company calling card or any major credit card. Just dial 1-800 CALL ATT. IRS Amends Regulations on Retroactive Election of 15 Year Amortization of Intangibles Do you own a publicly traded partnership and did you get a strange notice? The Notice sent out in April reflected the new tax law which provided that purchased intangibles acquired after August 10, 1993 must generally be amortized ratably over a 15 year period beginning with the month in which the intangible is acquired. The rules apply to some intangible, such as goodwill, that weren’t amortizable at all under prior law. Although the new 15 year amortization rules are generally effective for intangibles acquired after August 10, 1993, a special election is provided under which the new rules may be applied retroactively to certain intangibles acquired July 25, 1991 and before August 11, 1992 (“transition period property”). But, last month, after the IRS issued temporary regulations explaining how and when to make the retroactive election, and the consequences of doing so, it now says that certain changes will be made in the temporary regulations. If you think you received one of these notices, please call us so that we can advise you on this very unorthodox behavior of the IRS. Beware the Metrocard The MTA says it’s a thin plastic card that will completely change the way you pay fares on New York City’s subways and buses. We think it’s problem prone and this is new technology that should go back to the laboratory. The problem arises when you “swipe” the card through the card reader and the turnstile does not open. You may have “lost” your money without even knowing it. Read this from the MTA and decide for yourself whether to tempt fate: “Try it again and check the turnstile display to see what is says. If the card still doesn’t work, try another turnstile. If the second turnstile doesn’t let you enter (lost your money twice?) see what the Metrocard Reader near the turnstile says when you swipe the card there. If the information displayed on the Reader doesn’t explain the problem, ask the clerk (HA!) at the Metrocard window in the token booth for assistance (HA! HA!). If the clerk determines that your card is damaged but can verify its balance on the computer in the booth, he or she will immediately issue you a new Metrocard with the same dollar amount.If the clerk can’t determine the card’s balance ask for a Metrocard Customer Service Card Mailer. Fill out the form and mail with your card. We’ll inspect the card, review your information and, if we can verify the remaining balance we’ll mail you a new Metrocard encoded with the amount.Meanwhile, carry spare tokens! New Jersey Revises Workers Compensation Rates The compensation Rating and Inspection Bureau has announced the approval of revised Worker’s Compensation rates for New Jersey. The rates are effective as of January 1, 1994 and apply to all new and renewal workers’ compensation insurance policies. The new rates represent an overall increase of 6.6% in collectible premiums over last years’ rates. There is also an important change in the restaurant classification; clerical payroll will no longer be included in the restaurant classification, it is to be separately stated. The current rate for restaurants is $3.31 for every $100 of payroll. The current rate for clerical is $0.36.If you have any questions, about these or other financial matters, please call us.