Masonry Magazine May 1974 Page. 24
Perlite Filled Cavities Conserve Energy.
Heat transmission can be reduced by 50% or more when silicone treated perlite loose fill insulation is poured into the hollow cores of concrete block or cavity type masonry walls. In fact, cavity walls of face brick and tile show a 63% reduction! But that's not all. Silicone treated perlite loose fill insulation is water repellent-indefinitely.
Specs call for a concrete block wall? Perlite loose fill insulation can help too! By filling the core holes with perlite loose fill insulation your fire rating will be doubled to 4 hours and your "U" factor improved by 54%. And you don't have to worry about permanence. Silicone treated perlite is inorganic and rot, vermin and termite proof. And it's non-combustible with its fusion point of 2300°F.
Even a veneer wall of brick and concrete block can show a 52% improvement in insulating value when filled with loose fill perlite. Don't worry about settling -silicone treated perlite supports its own weight in the wall without settling and it's easy to handle too! Thanks to its countless glass-like cells it's light-weight and easily poured. It's quick-it's inexpensive and it's permanent-the perfect material for insulating masonry walls.
Perlite Institute, Inc.
45 West 45th Street
New York, N.Y. 10036 212-265-2145
Taxes
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tion. Instead, the corporation paid them an equivalent amount in dividends.
The IRS was asked whether federal employment taxes would be due and owing on the dividends paid. The IRS ruled that the "dividends" paid to the shareholders in 1972 were in lieu of reasonable compensation for their services. The term "wages" includes "all remuneration for employment."
Therefore, the IRS held that the distribution of money to each of the shareholders was reasonable compensation rather than a distribution of the corporation's earnings and profits. In such cases, of course, liability is incurred for withholding and other federal employment taxes. (Rev. Rul. 74-44.)
BAD DEBT
A civilian employee of the U.S. Government became acquainted with a third party who was engaged in the construction business. The taxpayer loaned $15,000 at 8% interest to this third party whose business was in financial difficulty. When repayment of the loan became hopeless, the Tax Court would not permit the taxpayer to take a business bad debt deduction on his tax return.
Instead, The Court held that the money loaned by the taxpayer was a non-business bad debt to be treated as a short term capital loss and not as an ordinary business loss. The fact that the taxpayer considered the loan to be a business transaction did not help him in court. The Court ruled that the loan was not incurred in the taxpayer's business which the Court said was that of being a civilian employee of the government. (Hecht v. Commissioner, T.C. Memo 197422.)
1973 TAX RETURNS
Over 117 million tax returns were filed in fiscal year 1973. Revenue collections increased almost $30 billion over the preceding year, or a 13% increase.
There was a mathematical error in one out of every 17 of the 22 million Short Form 1040A's that were filed. More than 63 million refunds were made in 1973. And there were some 76,000 undeliverable refund checks in fiscal 1973-totaling in excess of $18 million. In 1972, more than 80,000 checks for $14 million could not be delivered because those entitled to them could not be located.
The percentages of audited returns to the number of returns filed indicated that the chances of being audited ran one in fifty-seven. The IRS is presently making every effort to complete its examination of individual returns within 26 months and of corporate returns within 27 months.
WITHHOLDING
What happens when the employer pays the employee's FICA tax without deducting anything from the employee's wages? When "A" was hired by the "X Company" it was agreed that in addition to the wages that would be paid, the company would also pay the employee's tax imposed by section 3101 of the FICA without deducting it from A's pay. For the year in question, the employee had received $5,000 in wages, and in addition the employer paid $260 in FICA taxes.
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