Masonry Magazine March 1969 Page. 32
TAXES
(Continued from page 24) completed and approved by the Commissioner, it qualifies as a bond purchase plan.
Advice was requested of the IRS as to whether the qualifications of a self-employed individual's retirement plan would be disqualified by the following change.
A partnership of two equal partners set up an employees retirement plan. The plan provided for the immediate participation of the partnership's entire work force, which included the two partners (owner-employees) and three employees.
Two years after the plan was established it was amended to require that all future employees must have two years of service in order to be eligible to participate under the plan.
It was the opinion of the IRS that this amendment would cause the retirement plan to be disqualified.
The Regulations provide that where a qualified plan included owner-employees, it may, in no case, require a waiting period for employees which is longer than that required for the owner-employees. Thus, as this plan was established when the owner-employees had less than two years of service, their accounts will always reflect contributions made between the time they entered the plan, and the time they completed two years of service. Therefore, an amendment to the plan that would require a longer waiting period (than that for the owner-employees) would cause the plan to be disqualified. Rev. Rul. 69-66.
EMPLOYMENT TAXES
If both the predecessor and the successor employer so agree, the successor may include in W-2s for employees who worked for both employers the entire amount of the employee's wages and other compensation and the entire amount of tax withheld during the year.
DIVORCE FEE
Once again it has been held that a legal fee paid for services in connection with divorce could not be deducted as a business expense. This is so, even if the legal services were related primarily to a property settlement involving certain real estate. The court pointed out that the claim giving rise to the legal expense originated in the marital relationship of the taxpayer and his former wife, not in connection with the taxpayer's efforts to preserve his property. Such an expenditure is considered personal in nature and not deductible. Earle v. Commissioner, T.C.M. 1969-30.
Computerized Information System
A computerized information system that will allow architects to retrieve data on building products and materials meeting specified performance criteria will be developed for the New York State University Construction Fund by McGraw-Hill Information Systems Company.
The system, believed to be the first of its kind, will make the task of selecting building materials more efficient and economical for architects who must meet the state agency's goals of achieving quality architecture on time and at reasonable cost, according to Dr. Anthony G. Adinolfi, Construction Fund general manager.
"Instead of working backward by reviewing thousands of product specification sheets to find those that meet his design requirements, the new system will permit the architect to establish the performance characteristics required of the materials, and, with the aid of the computer system, quickly extract detailed information on just those products that satisfy his needs," Dr. Adinolfi said.
The Construction Fund is a public benefit corporation established in 1962 by the New York State Legislature to manage the planning, design, construction and financing of facilities on 30 State University campuses. It is responsible for an expansion program that will approach $3.5 billion through 1975.
THE ACTION PAIR
THAT MAKES THE JOB GO BETTER!
No. BL10
VAUGHAN
BRICKLAYERS' HAMMER
AND CHISELS
No. 14
Built-in balance, and strength, plus tough tempered blades for longer lasting edge sharpness-guarantee the performance and dependability of Vaughan hammers and chisels. That's why this pair can be seen "IN ACTION" wherever bricklayers are at work. When it comes to tools, it pays to buy the best-by VAUGHAN.
VAUGHAN & BUSHNELL MFG. CO.
11414 MAPLE AVE., HEBRON, ILL. 60034
masonry
March, 1969