Thursday, Mart'll 24. 1983
Interest-Dividends, Questions And Answers
»• 9 r
A.considerable amount of
misinformation has been
published relating to the new
interest and dividends
Withholding requirement
Which is effective July 1,1983,
thg internal Revenue Service
says.,
_£lapy of the more promi
nent questions are listed
bferow, along with the correct
irifbrmation:
What is this new,
withholding law and when will
itotake effect?
aA- The Tax Equity and
Fjftcal'Responsibility Act of
1982, passed by the Congress
last, summer, includes a
variety of provisions design
ed to aid the national
efc&homy by reducing the
federal deficit through better
compliance with tax laws.
Qoe of these measures re
quires banks and other finan
cial institutions to withhold 10
p£r cent on payments of in
terest and dividends beginn
ing July 1,1983. This is NOT
a*NEW tax.
<|. How will my Individual
Retirement Account be
affected?
(A. Not at all. The 10 per cent
withholding does NOT apply
tcqlßA’s or municipal bonds.
It j does effect interest and
dividends on savings ac
cents, certificates of deposit,
money market mutual funds,
stocks, insurance policies,
and savings bonds, when
cashed.
Why did the Federal
Government institute this tax
withholding?
A. Withholding will allow
thp Government to substan
tially increase revenues from
takes WITHOUT raising
takes on those citizens who
ca&ry their full share of the
tai burden. Past experience
has proven that withholding is
bv far the most effective
means of combatting non
compliance in the reporting of
income. While most tax
NOTICE
; Property with delinquent taxes will
be advertised beginning. April.. 7,
>1983 and offered for sale May 2,
1983. To avoid an advertising cost
of $6.50, these taxes must be paid
|Fby 5 P.M. Friday, April 1, 1983.
V Chowan County Tax Dept.
*
4 A GUIDE TO MAKING
1 THE MOST OF YOUR MONEY.
r THE PLAN THE PAYOFF
MONEY MARKET DEPOSIT
ACCOUNT
• Minimum opening deposit—s2,soo. _
• Balances falling pelow $2,500 earn 0.50 %
5V*% annual rate.
• convenient and accessible.
• No withdrawal penalties or fees. current annual rate
• Rate effective Tuesday, March 15,1983
through April 14,1983
6-MONTH MONEY MARKET
CERTIFICATE
• Rate guaranteed for full term of minumum deposit: $2,500
account. _ A _ m
• Rate effective Tuesday, March 22,1983 9.000 /O
through Monday, March 28,1983.
CURRENT ANNUAL RATE
• Federal regulations prohibit the
compounding of interest.
30-MONTH MONEY MARKET
CERTIFICATE MINIMUM DEPOSIT: SIPOO
• Rate guaranteed for full term of
account. A TAG/
% .. . CURRENT ANNUAL RATE
P • Rate effective Tuesday, March 15,
1983 until further notice.
\ 42-MONTH MONEY MARKET
CERTIFICATE MINIMUM DEPOSIT: SI,OOO
£ • Rate guaranteed for full term of H A/
■*. account. 9mws %
X * • Rate effective Tuesday. March 22. CURRENT ANNUAL RATE
1 1993 until further notice.
1
■Federal regulations require a sub- mciITAII
ffstantial penalty for early withdrawal LU t 111 Ull
1(4 — from all certm- a
t pAjrrp caeaccounts SAVINGS & LOAN
| South Broad Street
P
payers comply with the tax
laws, the failure of many to
report and pay taxes on in
terest and dividend income
costs the Government billions
of dollars each year in unpaid
taxes.
Q. Won’t withholding
penalize people already pay
ing their taxes?
A. No. Those already pay
ing their taxes will get all of
the amount withheld back by
either reducing their current
wage withholding, reducing
their estimated tax
payments, or by claiming a
larger refund when they file
their tax returns. This new
withholding program will not
be any different than the ex
isting withholding on wages
and salaries.
Q. Won’t this discourage the
incentive to save?
A. No. The only people who
will be adversely affected are
those who are not now paying
the taxes they owe on interest
and dividend income. Even
for those who do not adjust for
overwithholding, and thus do
not use the amount withheld,
the loss will be minimal. We
estimate the yield on an asset
earning 9 per cent would be
reduced by 5/100 of 1 per cent.
For a deposit of SI,OOO, this
would mean an annual loss of
50 cents. Furthermore, banks
can opt for end-of-the-year
withholding to eliminate even
the minimal loss of compound
interest.
Q. How will withholding af
fect older Americans?
A. The vast majority of
older Americans (85 per cent)
are exempt from this new
law. Those over age 65 whose
previous year’s taxes were
$1,500 or less ($2,500 on a joint
return) are exempt. Also,
those who were not required
to file an income tax return
last year are exempt as well.
And this new law DOES NOT
affect income from Social
Security.
Q. What about low income
individuals or those with
small savings accounts?
A. Low income individuals
who paid sßooor less last year
in taxes (SI,OOO on a joint
return) and are under 85 will
be exempt. Also, the legisla
tion provides for an exemp
tion for small savings ac
counts with interest payments
of $l5O or less a year.
Q.Will it be difficult to file
for an exemption?
A. No. Certificates of ex
emption (Form W-6) are
available from the financial
institution where you have an
interest-bearing account or
receive dividend payments.
It’s as simple to complete as
a deposit slip. Once the ex
emption is filed, it remains in
effect until revoked. If the
financial institution does not
have the form, contact your
nearest IRS office.
Q. What type of information
must I disclose?
A. Only your name, ad
dress, social security number,
the account numbers at the in
stitution, and whether you
qualify for an exemption.
Doug Hodges
Attends Seminar
Doug Hodges of Creywood
Oil Co., Coke Ave., Edenton,
is one of 30 tire dealers from
18 states who attended a
dealer management seminar
sponsored by the Goodyear
Tire k. Rubber Company in
Akron, Ohio, last week
(March 14-17).
Subjects covered during the
seminar include tire market
growth, trends, financial
management, employee hir
ing and training, advertising,
store planning and display
and merchandising.
Sessions were conducted by
Goodyear executives and by
educators from Farleigh
Dickinson University,
Rutherford, N.J., and
Washington University, St.
Louis.
Shroud Os Turin
Is the death shroud of Jesus
Christactuaify in shrined in'
..Turin, Italy?: Poes modern
man need physical proof of a
supernatural Savior?
Share the experience of
observing a film “The Shroud
of Turin” at Center Hill Bap
tist Church at 7 P.M., Sunday,
March 27,1983.
THE CHOWAN HERALD
Q. Will this new law be a
tremendous burden for finan
cial institutions?
A. No. Administration of
ficials have held numerous
meetings with financial
representatives and the
regulations were drafted to
minimize the potential impact
of withholding For one thing,
during the first year of
withholding, all financial in
stitutions will be allowed to
use the withheld money for 30
days before turning it over to
the Federal Government,
thus helping to offset their
start-up costs.
Q. Why couldn’t the
Government simply
strengthen the information
reporting system?
A. Much nonreporting is
due to inadvertence, forget
fulness, and failure to keep
records. Any attempt to reach
this unreported income
through information repor
ting and audit procedures
would require millions of
telephone calls, letters, and
visits, many involving small
amounts of tax which is in
evitably would have been
regarded as “harassment” of
taxpayers. The cost of follow
ing up on the million of ap
parent discrepancies would
be very costly.
Forest Institute
ATLANTA—Suffering the
pangs of recession more than
most industries, southern
forest based companies show
ed a firm faith in the future
during the 1981-82 tree plan
ting season.
Almost a billion trees
-967,847,219-were reported
planted by forest industry
firms in the Southern Forest
Institute’s annual survey. The
figures represent an increase
of 14% more than the planting
rate ten years ago.
SFI began the survey of
trees planted by industry on
its own and on other private
lands in 1948, when 26 million
trees were put in the ground.
Over the years many
millions of these seedlings
bave gpne Jo nqnindus trial
tree farmers who practice
forest management on their
own lands.
‘‘People in the forest
business are used to looking
ahead,” said Jim Mont
gomery, SFl’s executive vice
president. “It takes years to
grow a tree for paper and
lumber or plywood. Even in
these tough times they know
people a generation from now
are going to need more homes
and papers and all the other
things that come from trees.”
The figures do not include
acres planted by direct
seeding or those which were
prepared for natural
regeneration without plan
ting. They also do not account
for seedlings grown on state
owned nurseries planted on
other than industry lands.
More than half the seedlings
planted were grown on com
pany nurseries.
A majority of the pine
seedlings reported grew from
seeds of superior trees as part
of southern forestry’s continu
ing genetic improvement pro
gram. They can be expected
to grow faster, straighter and
be more resistant to fire and
disease than run-of-the-woods
trees, Montgomery said.
While industry forests and
those of tree farmers are be
ing well managed for
repeated crops of trees, he
said, they represent only a
small fraction of the forest
acreage in the South. Private,
nonindustrial owners hold
almost three-quarters of the
southern forest.
“The South,” said Mont
gomery, “can grow the in
creased wood the nation is go
ing to need; and it can be a
major factor in meeting world
wood and paper needs. But in
dustry can’t do it on its lands
alone. If the South is to meet
its potential, good forest
management must make
sense to these landowners
who aren’t now practicing
forestry.”
Southern Forest Institute,
with offices in Atlanta, is
a division of the America
Forest Institute, head
quartered in Washington,
D.C. The information and
education arm at the forest
products industry, the In
stitute sponsors the American
Tree Farm System to en
courage management of
private timberlands.
U.S. Dept. Os Agriculture Food Report
The average person spent
about $25 a week for food con
sumed at home last spring,
according to a U.S. Depart
ment of Agriculture food con
sumption report.
The report is drawn from
data gathered during the
USDA’s 1977-78 nationwide
food consumption survey,
when households spent an
average of $16.70 per person
for a week, comparable to
$24.60 at spring 1982 prices.
The largest part of that food
dollar - 36 cents - went for
meat, fish, poultry and eggs.
The next largest share 19
TyojJN’CATC” easter bunny Easter Rabbit animal-shaped
TWINER musicbox PLUSH toy CERAMIC
by Divareffied Products \u 11 (Tiffed n A
• Bad rebound trainer returns / O''-—xr
grounders, line drivss.snd fly balls. iM, n'Hui* '--L' . r ij'
• Ideal tor baseball or softball 14" Tall #
• 38"x38 si stsel "taks down” frame ~ 00
with nyton not 41 -L
• Instructions • 6 , A"Tall
““ SC44 :rsrr *<599 sp BB s-119
U Required ggm EACH I EACH
I 17-- ■ n - innm«HTiiioiij , v . , m -wmmam- - -
" MASSENGILL -
Sylvania •so watt AA C DISPOSABLE douche
soft white M Tij * ioowatt
Linht Dh|u c AH two per pack usLjd • bsiismii
l-iynt QUIDS »| Support Your Easter Seal Society
L F SEE STORE FOR DETAILS Twin Pact |
Selsun Blue BA .Z" D z-becvitamins
HR DISC FILM Shampoo FLEXIBLE 1 TRICOT Zincand
8 1 FABRIC MESH Vitamin E plus
loily^ 1 BANDAGES I BANDAGES 600 mg
\Wm\ 4-OZ. AMRMP 20 s Vitamins Etaßß
$439 $Ol7 Hf* $-119 SC77
® EACH H-* ►*"— I L4CH
iJto* TOOTHACHE HUNT Clairol’s
ItRAZyNAiIS RgM Spring Savings Spree VITAMIN C
V**”*) IWUpKir |JsSuL 'OM7
SHAMPOO-IN I TA ®” TS
Forfester, OTQ|©l HAIR COLOR J
xffjl ■"’■ET" IE r ,MUM Him SQI7 IS $0"
U 3444 1/2 , 0z . *2 o J
. PR F L«BALSAM nn ALPHA KERI ABSORBINE IES sylvania
t PROTON SHAMPOO B ATH OIL JR. ME FLIP FLASH
fl l FLEX BALSAM L\ $-| 39
i A PROTEIN I t :asa»W r=pr , n . |
| B CONDITIONER f a |j= WS* *
'tm ALL FORMS ■ ws. 8 -OZ. jA 4-OZ. SYLVANIA
$1 99 WM FLASH BAR
V-J isoz. I | «OK7 fW| SOO9 EU&k tc-aco
PgTLEIHgTWBVaUB I u l IWlffiW 10 .
COMPLETE HAIR CARE i W EACH
EXTRA STRENGTH MUTUAL ISOPROPYL tcuJcb»i i c
„ DEXATRIMCAPSULES RUBBING ALCOHOL r T 5- N !? BALLS
MfL WELCH’S Raynlar or Calfalne Erae 40 s ■■
Jm\ GRAPE egpa—M or 70%
JU,CE v £h \ ) HL “
tel 64-oz. xrt mm AAc • 3 can r
® $ 2 37 s si 3 p 5 2 49
PEPSI FREE fr=| MURINE PLUS f I SUPERSTAR 100
PEPSI FREE SEsS MURINE s SOCCER BALL
PEPSI COLA SJBF isoz. t “JO llxLttd l •32 Panel Genuine Rubber Cower
i $1 09
" 001 File BOX K Pendaßex * hanging '
eiTiM in rrrrrTir I 1.0 I file folder system —\~
thurSoay, MARCH a*. 19$ 3 5 if J folders and indexing
MUTUAL—For The Professional Prescription Service Your Family Deserves
MITCHENER’S PHARMACY RJ
HOLLOWELL-BLOUNT REXALL f GRI ° s »
cents, purchased vegetables
and fruits, inncluding juices.
About 12 cents went for milk
and milk products; 11 cents
for flour, cereal and bakery
products; and another 11
cents for beverages.
Those with more money to
spend purchased more milk,
milk products, bakery pro
ducts and beverages. Poorer
families bought more flour,
cereal and eggs.
When compared with a
similar survey conducted in
1965, the data showed a 440
per cent increase in the use of
yogurt and a 341 per cent leap
in the amount of lowfat and
skim milk purchased by con
sumer. Other products in
creasing significantly includ
ed: frozen fruit and fresh fruit
juice, up 91 per cent; turkey
up 81 per cent; nuts up 44 per
cent; alcoholic beverages up
40 per cent; soft drinks up 38
per cent; cold breakfast
cereals, up 36 per cent and
fruit ades, punches and drinks
up 33 per cent.
On the decline were:
evaporated milk, down 61 per
cent; butter down 52 per cent;
shortening, down 47 per cent;
coffee and canned fruit, both
Page 5-A
down 41 per cent; nonfat dry
milk, down 35 per cent; flour,
down 34 per cent; hot
breakfast cereals, down &
per cent; dried fruit, 27 per
cent; sugar annd jelly, down
26 per cent each; and bread
and fresh white potatoes,
each down 25 per cent.
There was little change in
the part of the food dollar by
major food groups.
The three-step oral hygiene
regimen of flossing, brush
ing and rinsing will help.,
prevent tooth decay in
children.