European Stars And Stripes (Newspaper) - March 21, 1986, Darmstadt, Hesse                                Friday March 21, 1986 the stars and stripes Navy Star Stripe Page 7 new dollars stirring up a fuss in Congress of a of eth to to. T / � _. 1washington a the Treasury department has come out with the first major changes in . Currency in More than 50 years but the redesign although slight is not pleasing everybody. Some in Congress Are charging that Bank tellers and store clerks will need magnifying glasses or Bright lights to spot the two new anti counterfeiting devices. Others con tend that the whole exercise is a smokescreen to hide the government s real intent to flush out billions of Dollar sin the underground Economy. Treasury Secretary James Baker announced earlier this week that the Bureau of engraving and printing will begin adding a tiny plastic thread and microscopic printing to . Money to try to thwart counterfeiters with Access to a new generation of sophisticated copying machines. The government spent several years and $32 million studying a variety of options to make american currency tougher to counterfeit. It considered and discarded S.C. options As changing the color to adding a three dimensional Hologram that would Flash Bright colors when View Din the Light. In the end officials decided to opt for two More Subtle changes that Are not Likely to be noticed unless the currency is studied carefully. One addition will be a Clear polyester thread running from the top of the Bill Down to the Bottom on the left Sid of the portrait. The thread will be invisible until the Money is held up to the Light. Through Light the thread will appear along wit printing. On the $1 Bill the printing will be one Usa one Usa along the length of the thread. Usa will be printed on the threads Woven into All the Bills but the denomination will change depending on the value of the Bill. The other change will involve printing of the words United states of America repeatedly around the por trait. The words will appear As a Black line until held under a magnifying Glass. Both of these changes will be impossible to reproduce even with the sophisticated color copiers that Are now showing up in offices Treasury officials said. But rep. Frank Annunzio chairman of a House Bank ing subcommittee on coinage said wednesday that the Treasury changes Are too Subtle. If the Treasury implements this new currency they ought to provide every person in America with a magnify ing Glass he said. Micro printing can t be seen without a magnifying Glass. The plastic thread can t be seen unless it is held up to the Light. That Means that every supermarket clerk has to hold up every Bill to the Light and use magnifying  Annunzio d-i11., said he planned to hold hearings of his subcommittee on the changes to find out Why other proposals were rejected. However under the Law Baker does not need congressional approval to implement currency design changes. The Treasury department stressed that All currency in circulation will remain in circulation until it wears out. However critics challenged this assertion As Well. Ron Paul a former Texas congressman said he expects Baker will at some time in the future announce a recall of All old currency As a Way of uncovering billions of dollars used by drug dealers and other criminals As Well As legitimate businessmen who Deal in Cash to avoid paying taxes. Their real aim is to try to track Down a lot of Money that has gone into the underground Economy Paul said. Treasury officials denied this saying there is no plan to recall any currency currently in use. Both the new currency and existing currency will be Legal tender and will circulate Side by Side the depart ment said in a statement. The Treasury said it will take one year before the new Bills can be printed and another three to six months before they Start showing up in circulation. The changes will add one tenth of a cent to production costs officials said meaning that the 6.5 billion $1, $5, $10, $50 and $100 Bills printed annually will now Cost 2.6 cents each instead of 2.5 cents to print. The two anti counterfeiting devices Are considered the first major changes to . Money since the currency was reduced to its current size in 1929. The Only other change occurred in 1957, when the words in god we Trust began appearing. A thriller of a visit up photo with Chimp bubbles hanging on Singer Michael Jackson shows 14-year-old Donna Ashlock around his estate in los Angeles. Ashlock received the heart of her Friend Felipe Garza jr., in a transplant operation in january. Garza 15, had predicted his death and donated his heart to her. Shultz tells Senate panel embassy Security is vital Washington a if Congress slows Down Security improvements at . Embassies the result might be terrorist at tacks on the weak links in the Chain of . Diplomatic missions Secretary of state George Shultz says. But if Congress compensates for the heavy spending needed for Security improvements by cutting Back on foreign Aid or state department operations it will severely damage . Interests Shultz told a Senate appropriations subcommittee wednesday. Shultz sought Senate support for the five year $4.4-billion program of the Rea Gan administration to fortify . Embassies and consulates against terrorist attacks. The program was approved by the House on tuesday night 389-7. But sen. Ernest f. Hollings d-s.c., said there is Little Chance the Senate will approve Large spending increases this year and that it May impose Large reductions. If that is the Case they re going to Sacri fice important interests of the United states because with S.C. reductions there just in t any Way that we can continue to operate in the manner that we no do Shultz replied. Noting that his department is already proposing to close seven consulates to save Money Shultz said Well close posts. Well Cut people Way Down. And then you la have to ask yourself what happens to the interests of the United states it s not a matter of closing any embassies Hollings protested. It s just going slow on the Security  Well you go slow on the Security Mea sures and somebody runs an explosive car into one of the embassies that we did t do anything about How Are you going to feel about it Shultz asked. Personally i think we should be pushing this program just Ashard As we  Shultz then complained that Many state department officials spend their time on duties of marginal importance S.C. As Tak ing care of official . Visitors to their overseas posts. Last year there were 16,000 official visitors to London he said adding that some officials at the embassy in London spend their lives at Heathrow Airport meeting visitors and making sure they catch their planes when they leave. Shultz noted that the House budget committee is seeking deep and dramatic reductions in the state department budget this year to meet the requirements of the new balanced budget Law. He said the pro posed cuts would ravage this country s International presence and seriously harm our National  tax court rules return filed without w-2 is proper  adn _ i _ .1washington a in a unique ruling the tax court has held that a tax return filed on time was proper even though the w-2 earnings statement was not attached. The omission of a form w-2 does not prevent the calculation of tax liability the court wrote in deciding this week against the policy of the internal Revenue service. The decision is Likely to be appealed. It came in a Case that entered on whether the three year period in which the irs has to Issue a notice of tax deficiency was extended by the taxpayer s failure to file a return with a w-2. Sherwood e. Blount or. Of Dallas was granted a 60-Day Extension to june 15, 1981, to file his 1980 return. He filed before that deadline but did not enclose the w-2 form from his employer his own real estate company the irs sent Back the return and asked that it be refiled with the w-2. Blount refiled on july 9. On july 5, 1984, the irs mailed Blount a notice that he had underpaid his 1980 taxes by $210,132. In tax court Blount argued that the deadline for the irs to Send that notice was june 15 three years after the return was filed. No said the irs the june 15 filing was not a return because it had no w-2 thus the Agency contended the deadline was three years after a return with w-2 attached was filed. The court agreed with Blount. The first filing had sufficient data to calculate tax liability it purported to be a return it was a reasonable attempt to satisfy the Law and it was signed under penalty of perjury the court held. Even if the return is considered incomplete solely due to the omission of a form w-2," the court said the subsequent resubmission of the return with a form w-2 operates to Supply the omitted information or correcting inaccurate  irs Roundup in other tax news if you sell your principal Home and within two years buy another one costing at least As much taxation of profits from the Sale is deferred. The old Home must have been your Princi pal Home for at least three of the last five years. In Georgia recently a couple sold their old Home and construction began on a new one in the country. Before it was completed the husband died. The old Home had been listed Only in his name and his widow inherited the proceeds from the Sale. But she was not an owner and there fore is not eligible to defer taxation on the profits. Rep. De Jenkins d-ga., hearing of the woman s plight has introduced a Bill to allow the deferral when one of the spouses Dies before occupying the new Home. Thomas j. And Judy a. Rodeck of Schererville ind., claimed a deduction for $2,634 to a Church. As evidence they offered testimony from a witness who helped count proceeds from the collection plate each sunday. The irs countered that the Church was somehow connected to the tax protest movement and that the contribution records May have been created just for the trial. The tax court would have none of that holding there was no evidence on record to Bear out the irs argument. The full deduction was allowed. But the Roecks still lost More than they won. The court rejected the couple s argument a favorite of tax protesters that income from labor is not taxable and upheld penalties for negligence late filing and failure to pay estimated tax. A his year s edition of the irs popular Public Cationic i or Federal inc me tax has an error on Page 55. The depreciation rate in the example involving Eileen Green s townhouse should be 19 percent not 15 percent and the rental loss in the example should be $4,411. The same mistake appears in example 1 on Page 7 of publication 527, rental