European Stars And Stripes (Newspaper) - April 12, 1987, Darmstadt, Hesse                                Page 2. The stars and stripes sunday. April 12,1987 hey fax snubbed irs wants you   Burea if you ear Moncy overseas and Aren t paying taxes the internal lev Cuc service would like to Nave word with you. V american Civ inns worldwide who do not file tax re turns Cost the Gove Nunnel 12,3 billion a year said Dennis Melton assistant  at the irs office in  an irs crackdown non thai unreported income might land Many american civilians and retirees in the european military Community in hoi Flower. What s happening to deflate is they re saying hey in s foreign sourced earned inc Tae i Don t have to file Mellon said. The Bottom line  and retirees earning Money in Europe is this to Buhust report income to either the United Stales or a Forcin government or both said Jerry Shiles an attorney Winve 21 is support omd in Kuliser Slauter. In an extreme example an american Cwian working for the army and air Force Exchange Servic Tych is paid in German Marks must pay both German  shills said he knew of one Case where Ani Dividu Al making an average wage faced a combined tax pet of52 percent most . Government employees overseas must i Normal requirements for reporting income and pay taxes. The issues grow fuzzy for americans living Abr who work an a contract basis or work for a company that contracts with the government shills  the first instance when individuals work on a con tract basis the military considers them self employed. That Means inc military does not report to the irs exactly what each person is paid in docs Noi withhold Federal income lax and it does nol withhold social Security for the self employed person working on a contract the first $80,000 earned overseas from a . Organiza Tion can be Che Mph. The result is no . Income taxes on less than 180,000  there s a catch. The irs and the military Don t agree on who a contract labourer is and who an employee  key is control the irs consider a person an employee if there Are  controls on his or her  include Sel hours specific responsibilities a pit determined work place or provision of Loots and  determined to be employees of the government do not get the $80,000  irs is looking closely to determine if contract work ers forthe military in Europe actually Are employees the troubles of contract workers Don l end there. The German tax office is seeking irs help in locating self employed americans who should be paying Ger Man taxes Shelles  working with universities military credit unions or major corporations with government con tracts in Europe also have possible tax woes. Employees of such businesses do qualify for the$80,000 exemption on foreign sourced earned income but they must report All income and tile a form claim ing the exemption the irs faces a problem finding people who Don t file Melton  Don t have a specific number but it s wide and he  taxpayer faces a problem by not filing quit enough. If after a year inc exemption is unclaimed Allie income is taxable. For example a person who earned $50,000 awhile working in Germany for a .-Baicd elec firm can avoid paying taxes by filing a form chiming the exemption on foreign sourced earned tag me. But if the form is not filed by april 15, 19bufone year alter the filing Date for 1986 All of off income is taxable at Normal  1987, the exemption drops t. Many people in this Cate Onorio receive partial support on military  the status of forces agreement exempts Jpn from German Taxeras Well. Bui the get Auk office by other ideas Shil Essaid a the treaty As i Reat exempts those people from German taxes on Haj sumption that they arc .  he saidf1 has l been aggressively Pur sued because thewl he germans just got wind of  the a i a German governments Are stepping up the search for americans living abroad who fall through the crack. And to firs is getting Strong backing from Congress in its  in 1988, there will be a $500 penalty for Nola suding a social Security number on a passport Ron the irs working with the slate department the numbered passports to keep track of americans abroad who should be filing tax returns Mellon said. T. Those unsure where they fit in the complicated tax picture help is available through base or Post Legal services. American civilians not associated with the military Community can receive help Al the irs office in the us. Embassy in Bonn. A mortgage interest jute to 9.5 percent Washington a the Veter ans administration announced Friday it was raising its maximum interest Rale on federally backed a mortgages a full percentage Point to 9.5 percent the firs increase in this rate in two Yean. Temperatures the a said thai in feb making the change to bring its Rev re in line with the mortgage  has been moving up in recent Fly Cess. The change will take effect on Money in the past three years the la has lowered ils mortgage Rale 15 time Wilh the last Cut occurring on Jan. 16, Sten the Rale was reduced to 8.5 percent lowest level in nine years. A rates hit j All Lime 1her 1981., Vaj 17.5 percent in septem j loan experts said the 9.5rale was still Low enough that Loreld nol Dampen demand to new and Home refinancing. Officials that in the past six months  for a backed mortgages has Een averaging about 40,000 a month. The a said it was also increasing other loan rates by one percentage Point. This includes a new rate of 10 percent for graduated payment Mort gages and ii percent for Home improvement Loam. The Rales apply to new Loans no existing ones. The last Lime the a in creased its mortgage Rale was on march25,1985, when it raised the Rale by one half percentage Point to 13 percent. 39 m ahliny37 7d  33 49 Anc Giorigi 7s " m the lcufe44 79 Lubbock 12 79 Man hmm 77 Morni Al 77h u 39 79 37 71l 49 a tort is m h 34 7d 49 71 37 77 97 79 94 u � Psi 9 a3s is it44 1 79 mall Lpaul n Nihom    cd Tylda a court  ii4t ii 34 a 77 ii 7933 Al pm it Tiu intoned Jet in Jet Mai unmet 45 u to 75 44 7s51 7b to us3 to 32 t 37 � 3 10 39 75 73 m 41 15 79 h to 4 7tra h 28si 41 1113 79 17 4 france1 a Mance chief Calls plunge of dolls for quote normal9 fluctuation  pm Exumn Sll Tuduy bumb Limpet brain my 64 Ulm Iuit us flock b4 49 u41 7 Wahll 39 to Woty european wet Washington a. Fri so of debt repayment periods by five to 1c Yean an improvement in the International monetary fund s ability to compensate for Export earning losses from the declines inthe prices of Basic commodities and a new mechanism to partially refinance rescheduled debts on easier terms. In sunday Mpr Doudy to to 1 pm to Llyl. Marl la a 41 ohm Sudiro 114, unto Momii i37 Jour a Tenno to Pattii Dudy hum Al or flu. Wutti Claudiu Tud Kim run pfr1 t4tffmi4iuril f4 anti-. Bomb plot reported Foed 4im 4pm� 41 34 ii41 in Mutt . _ so to nah f a 436j 3 to Bow i 3? ii 4t 27 Otto. � 34 32t3 m Taono. Cd 7f 39 61 41 . U 4s us ppm or Ihrl aim hold of of thud to Mollt Clouds do ii Rah. Cd clo ulv Ankara Turkey a a newspaper Friday said police foiled a plot by terrorists belonging to the islamic jihad organization to attack . Targets in Turkey. A High level intelligence official in Ankara confirmed the report and said arrests were made in the Case. The off Kiat insist Don anonymity and refused to give details. The Istanbul newspaper Milli Yei said police acting on a tip caught a turkish Cili zen of lebanese origin Wanh 200 pounds of plastic Chi Plosives in inc Southeastern Mediterranean coastal town of  newspaper said police slaked out the House of the Man identified As Kidi Filiz. When a lebanese citizen identified As Huseyin Mohammed cent in contacted Filiz both men were arrested. Mill yet said Cemlyn told police hews a member of the moslem extremist organization islamic jihad and was sup posed to Lake inc explosives to Istanbul where he would meet accomplices arriving from abroad. The group later planned to . And israeli diplomats in Ankara and Izmir Milli Yei quoted i Iliyn As tolling police. The . Air base in in Ciurlik. Near o was a target the paper said suon t have anything to add to the Rcpt tech set. Jim hum spokesman in Ciurlik a told the stars and stripes Friday it reported cent in As saying the group planned to Swap hostages for 200islamic jihad Milianis held in israeli  look com lion to Istanbul and after wailing for iwo weeks Anes cd a iranian who showed up for the meeting. The newspaper said. In identified he Ira Nian As 20-Jcar-old