Local News
Filing an extension
saves sinking ships
It was on April 15th in the year of
1912 that the deluxe ocean liner, the
Titanic, sunk, just hours after collid
ing with an iceberg off the banks of
Newfoundland. If the approaching
;April 15th deadline for tax filing is
making you feel like your ship is
about to sink, consider the following
advice from the North Carolina Asso
ciation of CPAs.
Vou can get an automatic no-ques
tions-asked, four-month filing exten
sion by submitting Form 4868. This
will push your filing deadline back to
August 15. Form 4868? Application
for Automatic Extension of Time to
File U.S. Individual Tax Return? al
lows you to postpone filing your re
turns for four months. Take note that
the key term here is filing? not pay
ing. While the IRS allows you an ex
tension for filing you completed tax
forms at a later date, any tax that is
estimated to be due must be paid at
the time you file for an extension.
But if your ship is running out of
steam, an extension may be just the
SOS you need to keep your head
above water. Many people tend to
rush through their return at th elast
minute losing sleep and often making
costly mistakes.
To apply for an extension for your
1986 return, you must file Form 4868
by April 15, 1987 (If yu file a fiscal
Form 1040, Form 4868 must be filed
by the regular due date of your re
turn.) The four-month extension is
. automatic upon filing Form 4868; you
: will not receive a reply from the In
ternal Revenue Service. Inciden
tally, if you request an extension, you
may not later ask the IRS to figure
your taxes.
It s easy to navigate your way
. through Form 4868-a simple, one
; Page, seven-question form. You need
- not give the IRS any reason for re
. questing an extension. Again, what
" you will have to do is estimate your
tax liability for 1986 and pay any tax
due when you file the application for
extension.
It is most important that your care
; fully calculate the amount of tax due.
-If you underestimate your taxes, you
? will have to pay interest on the un
paid amount. And, if your unpaid
taxes exceed 10 percent of your total
bill, be prepared to pay, in addition to
interest, a failure-to-pay penalty
Generally, this penalty amounts to >4
? of 1 percent of your unpaid taxes for
each month, oor part of a month that
the tax is not paid. The penalty is lim
ited to 25 percent of your unpaid
taxes.
Deadline Close And You're Still
Treading Water?-What happens if
your four-month extension deadline
is approaching and you're still tread
ing water? Well, if you have a good
reason, you may be able to get an ad
ditional two-month extension ? but on
ly if you have a very good reason. To
apply for an additional extension,
you may send a letter or file Form
2688f? Application for Additional ex
tension of Time to File U.S. Individ
ual Tax Return. This extension is not
automatically granted, so you should
request the extension early enough so
that, if refused, yuou will still be able
to file on time. (Except in undue
hardship cases. Form 2688 or a re
quest by letter will not be accepted
unless you have first used Form 4868
for an automatic extension.) To ap
ply for an additional extension you
may give the following information:
the reason for requesting the exten
sion;
the tax year to which the extension
applies;
the length of time needed for the ex
tension;
whether another extension of time
to file has already been granted for
this tax year.
The Internal Revenue Service asks
that you clearly describe the reason
for your delay. Incomplete reasons
such as "illness" or "practitioner too
busy" will not be accepted without
adequate explanation. Clearly ex
plain reasons and attach supporting
information to the form or letter.
In addition to personal sickness or
injury, or a death or a serious illness
in your immediate family, some ac
ceptable reasons drawn from IRS
proceedigs and court cases, include
the following:
A taxpayer with a substantial num
ber (approximately 200) of security
transactions during the taxable
yuear did not have enough time to
gather and analyze all the required
information.
A taxpayer with a complicated de
duction problem concerning medical
expenses under study by his tax advi
sors.
A man who invested in oil prop
erties and received information from
the operators too late to complete his
tax return by the due date.
Taxpayers whose records were de
stroyed by fire or by other casualty.
If your application for an additio
nal extension is approved, your will
be notified by the IRS. Attach this no
tification to your return when you
file. If your application is not ap
proved, you must file by the due date
of the automatic extension.
Is Your Ship Out Of Port?? Plan
ning a cruise around the world?
If you are a U.S. citizen or resident
and are not in the United States or
Puerto Rico on April 15, 1987, you are
allowed an automatic extension until
June 15, 1987, both to file your return
and to pay any taxes due for 1986. If
you file a joint return, only one
spouse need be out of the country on
April 15, 1987 for this automatic ex
tension to apply. If two spouses file
separate returns, only the spouse out
of the country is entitle to the auto
matic extension.
You do not even have to file a form
for this extension. But if yu use this
automatic extension, you must at
tach a statement to your return when
you file, esplaining that you were out
of the United States or Puerto Rico on
the due date of your return. It's a
good idea to have some concrete
proof of this fact, should the IRS ask.
You do get an additional two months
to file and pay, but when you file, if
your return shows that taxes are
owed, you will pay interest and possi
ble penalties on the unpaid balance.
If you are eligible for this auto
matic extension and find that you're
not yet afloat and still need additio
nal time, you may file for an additio
nal two-month extension by submit
ting Form 4868 on or before June
15th. You should indicate that you are
filinig under the special traveling
abroad status. When you file Form
4868, you will be required to estimate
your tax liability and pay the amount
due.
CPAs suggest that if it looks like
you might have trouble meetig the
April 15th deadline, a filing extension
can bail you out.
Cantata service set
The Hertford United Methodist
Church will once again be presenting
its Easter Cantata, "The Way Of The
Cross". The service is to be held on
Palm Sunday night, April 12, at 7:30
p.m. in the sanctuary of the church
under the direction of Miss Caroline
Wright, music director.
The Cantata will protray the life of
Christ through music and pageantry
with children and adults from the dif
ferent community churches taking
part. This has been a very meaning
ful service in the past and has been
well attended. Come join this service
of worship.
Information on tax refunds
Nearly 1.5 million North Carolini
ans have already filed federal in
come tax returns. Over 800,000 re
funds have been issued, totalling $536 <
million for an aveage refund of $670. j
Another 1 million return* and ex- i
tension requests are expected by
April 15.
The Internal Revenue Service has (
announced extended hours or tax as- {
sistance on its toll-free lines and in
walk-in areas statewide to provide
last-minute tax help.
On Saturday, April 11, the lines will
bg open from 10:00 a.m. to 3:00 p.m.
on April 13, 14, and 15, the lines will
be open from 8:30 to 7:45 p.m.
"Taxpayers can call 1-800-424-1040
for answers to last minute questions.
The IRS Tele- tax number 756-1498
provides recorded tax information on
198 topics. Taxpayers can also use
this number to get information on the
status of tax refunds. The taxpayer
will need to provide the social secu
rity number, filing status, and exact
. ; amount of refund to use this service.
- - Moat IRS offices in North Carolina
1 which provide walk-in assistance will
be open an additional hour each day
i through April 15 and from ?:08 a.m.
to 1:00 p.m. on Saturday, April II.
Taxpayers can call 1-800-434-1040 to
t 1 *
verify locations and times.
For returns filed after March 31,
refunds will take 8-10 weeks to be is
sued. For the 14,000 taxpayers who
have filed their returns electroni
cally from the Raleigh, Durham or
Fayetteville areas, refunds are being
issued in an average of 18 days. The
electronic filing project will be
greatly expanded for next year.
Pictured above Ashley Ed
wards demonstrates how to
make Poppy Seed Bread last
Thursday at the Local Chef's
Spectacular.
Below Mrs. Eure prepares
hot veast rolls and cinnamon
rolls for eating by the ladies
who attended the presenta
tion.
The local chef's spectacular
is an annual event held each
year by the Perquimans
County Extension office in the
Spring. This year five people
participated in the event.
Family Dollar reports sales and earnings for quarter
MATTHEWS, NC-Family Dollar
Stores, Inc. (NYSE symbol FDO), a
discount store chain operating 1,203
stores in a 24 state area ranging as
far north as Michigan, south to Flor
ida and west to Texas, today reported
that sales in the second quarter had
reached record high levels, but that
earnings for the quarter had de
creased. For the second quarter
ended February 28, 1987, sales were
$146,698,989, or approximately 10 per
cent aboves sales of $132, 9%, 711 for
the second quarter of the prior fiscal
year. Net income was $8,117,095, or
approximately 9 percent below net
income of $8,954,904 for the compara
ble quarter, and earnings per share
decreased to $.28 from $.31.
For the six months ended February
28, 1987, sales were $272,989,082 or ap
proximately 13 percent aboves sales
of $242,115,736 for the first six months
of the prior fiscal year. Net income
was $13,775,670, or approximately 9
percent below net income of
$15,171,669 for the comparable six
month period, and earnings per
share decreased to $.48 from $.53.
In comenting on the results, Leon
Levine, Chairman of the Company,
stated that: "After reporting 45 con
secutive quarters of record earnings,
as well as sales, on a comparable ba
sis, the Company now has reported
two quarters with earnings decreass.
These decreases are primarily re
lated to the decrease in sales in exist
ing stores during recent quarters.
While total sales continue to increase
due to sales from new stores opened
in the Company's store expansion
program, sales in existing stores de
creased approximately 3 percent in
the second quarter ended February
28, 1987, and approximately 2 percent
in the six months ended Frbruary 28,
1987.
r
"Family Dollar is implementing
several major programs in an effort
to produce meaningful existing store
sales gains. In an increasingly com
petitive retail sales environment, the
Company has adopted a 'low every
day' pricing policy, and reduced
prices on a wide variety of merchan
dise during March 1987. The advertis
ing campaign promoting this policy
emphasizes that Family Dollar 'will
not be undersold' on identical items
appearing in any competitor's adver
tisement. At the same time that we
are promoting this aggressive pric
ing policy, we are proceeding with
the previously announced conversion
of existing stores to a new interior
layout and improved merchandise
presentation that places increased
emphasis on apparel and other
softline departments.
While the pricing policy will reduce
annual gross profit margins, we ex
pect that, for the longer term, this
policy and the conversion pro
gram should generate increaesed
sales in existing stores which is of
critical importance to Family Dol
lar's porofitable growth.".
Lewis E. Levine, President of the ^
Company, reported that Family Dol
lar continues to add new stores to the
rapidly expanding chain. At the be
ginning of the first and second quar
ters of the current fiscal year, the
Company was operating 1,107 and
1,150 stores, respectively, compared
to 920 and 986 stores in operation at
the beginning of the first and second
quarters of the prior fiscal year.
Thirty-five stores were added to the ^
chain during the second quarter this
year, compared to the addition of 44
stores during the second quarter last
year. Since the end of the second
quarter on February 28, 1987, 18 new
stores have opened, including the
first store in Kansas. As previously
announced, the Company expects to
open approximately 190 stores in the
current fiscal year, which would
bring the number of stores in opera
tion by August 31, 1987, to approxi- V
mately 1,300.
i
You've found
Your dream home;
a house that
feels it was
ment to be
yours the
moment you
stepped in side.
wants to help
make that house
your home,