European Stars and Stripes (Newspaper) - May 10, 1989, Darmstadt, Hesse                                The Good news is we re thinking of easing up on you. The bad news is we re considering Selling your tax return information to a junk mail outfit1 hanging on. And on. To tax records by . Diamond los Angeles times a though the pain o tiling lax return passes the need to store the records is continuing irritant. One must decide what to keep and How Long to keep it or leaping Over indecision just keep it All usually in drawers or boxes already Lull of Lour 10, even 20 years of tax records. Annually tax preparers the irs and the Media Sci Crale that the statute of limitation Lor an irs Challenge is three years six years under certain circumstances unlimited Only in the Case of fraud. Nevertheless confused or fearful we keep it All forever. The general rules seem straightforward the irs must examine income tax returns and assess additional taxes within three years from the due Date or the Date of filing whichever comes later. If the taxpayer understated Gross income by More than 25 percent of the amount reported however the irs has another three years six in All to make its challenges. And if  return is tiled or the return is fraudulent there s  statute of limitations on irs action. All those people who keep records forever Aren t necessarily frauds although they May Shade facts in their favor or May be. As tax preparers say aggressive in their claims. They recognize that to some extent fraud is in the Eye of the judge that some of the irs s 120,000 employees Are bound to be overzealous. And they fear a fraud charge and a future Light indeed it s a serious charge with harsh penalties. Civil penalties Are 75 percent of the additional tax owed plus an additional 50 percent of any interest due these assessed by the irs examiners with tax court making final judgment if the taxpayer appeals. A Case can also be referred Lor criminal investigation and then for prosecution by the department of Justice in Federal court with a possible Fine or jail time added on. But use of the term fraud is not casual it s not negligence or ignorance of the Law. There must be intent to evade taxes a bad purpose in the words of Manuel Godinez a group manager in the irs s criminal investigation division los Angeles District and the Burden of proving that intent is on the government. The Dille Ronce Between criminal and civil cases says Godinez is the degree of bad purpose and relatively few become criminal cases. In 1988, when 194 3 million tax returns were filed 107 million individual criminal investigation sent Only 3,044 cases Lor prosecution. We have to be selective because we re the smallest irs division says Godinez and our cases can take 18 months. For every 10 to 15 referrals Well accept  almost half involved narcotics Money laundering fraudulent tax shelters or illegal tax protesters. The selection depends partly on the degree of bad purpose partly on publicity value and current political concerns. Many cases Are headliners which Tell Joe blow taxpayer that we Don t just go after the Little Guys but will take on the big ones too says Rob Giannangeli. Irs spokesman in los Angeles. A recent example hotel magnates Leona and Harry Helmsley accused of tax fraud after the irs claimed they diverted millions of corporate dollars to the decorating of their private mansion Jade artwork landscaping Marble dance floor Sand deducted them As business expenditures from corporate taxes. Civil fraud penalties Are somewhat More common 9,304 assessed in 1938 but still selective. Overstating the business value of some $10 lunches May simply lose a taxpayer the deductions a fraud Case requires says Giannangeli some sort of definitive act like keeping two sets of books altering documents claiming dependents that Don t exist making unexplained Bank deposits or listing properly in relatives  intent must be provable the difference says Giannangeli Between giving a watch to Charity estimated at $5,000 when it s later appraised at $2,500, and getting a $2,500 appraisal and then claiming it s a $5,000 Gilt. Tax court rulings demonstrate stringent standards Lor judging intent. Large understatement of income May not prove fraud nor has Gross neglect of bookkeeping procedures nor did the behaviour of a taxpayer who filed  returns for Given years until called in produced  books or records until the trial and then gave inconsistent testimony. But fraud was found in the Case of a taxpayer who claimed theft losses on a Picasso painting that the government proved did t exist. Similarly the court ruled fraudulent a neurosurgeon s understatement of income Given the deposits into his personal checking account of practice fees that had not been recorded and a regular$1,000 error 13 times in two years in the addition of his monthly receipts. Such judgments May reassure Ordinary people who save All tax records in Case they re Ever accused of fraud. Someone trying to perpetrate a fraud will probably keep  records at All since  records can prove their assertions. As for everyone else says Shirley Nakagawa irs spokesman in the los Angeles District if you think you might need to explain something or you re being audited and Haven t gotten an audit report when the three years is almost expired then you d better keep everything a while  fraud considerations aside one should routinely keep anything says Giannangeli that has bearing on the future if not current taxes. Certain records in irs words verify the basis of property or what the taxpayer put into it. When a Home for example is sold and the proceeds reported computation of taxable capital gains lakes into account All monies put into it. Similarly one should keep records of any investment not yet matured or liquidated stocks Bonds iras partnerships Art and jewelry collections and not just for the irs. Such information can establish a later Sale Price or Back up an insurance claim. Then there Are the tax returns themselves generally kept for seven years by the irs Given those six year limitation Sand Lor the rest of their lives by taxpayers even those who discard the background documentation. After All old returns might some Day provide guidance or curiosity value and they take up Little room. Eirma Fembeck ago by. A e be n., Pinies. 1. Extreme and generally prolonged pain. 2. Physical or mental suffering. 3. In fashion a condition brought on by wearing a jumpsuit under the influence of water pills i m telling you this As a Friend. Think before you drape yourself in one of the hottest fashion styles of the season the jumpsuit. I Don t care what designers say jumpsuits Are not the go anywhere do anything outfits they Are touted to be. Personally i d eel less restrained wearing a kayak to a Barbecue than i would in this garment. Historically jumpsuits have been worn by Dairy Farmers Auto mechanics astronauts race car Drivers and nuclear disposal teams. Do you see a pattern developing Here let Rne help you. They Are All men few people know this but the first jumpsuit for women was worn by Nefertiti an egyptian Queen in the 14th Century . She was buried in one of sure it bore a striking resemblance to a Mummy wrap but it Page 16 the stars and stripes was still the one piece garment you had to have help getting in and out of that you see today. It worked for her. But then she was t going anywhere. For today s women it is downright inconvenient. I bought a jumpsuit a couple of years ago because i read an and saying it was the favorite attire of foreign correspondents who wanted to arrive at their destinations prepared Lor anything. Jumpsuits were great for climbing on and off air planes. They Wero terrific to sleep in and kept their shape. You could sit in them for hours and not Leel constricted. You could dress them up or dov.with a simple Scarl or jacket. You could do everything in them except go to the bathroom. I have  intention of going into the details of my airline restroom experience. I will Only Tell you of the discomfort in having your body at 34,000 Leet and your jumpsuit at 33.000 feet. When i finally emerged from the bathroom my wednesday May 10,1989 husband observed you Don t look Good enough to have been in there that  Don t Start with me i said. I just dropped my Belt Down the  what s that red Mark on your forehead i hit it on the  what were you doing Down there you would t believe it if i told  i keep looking Lor a new Federal Agency to emerge that would regulate the safety of clothing and the people who Wear it somebody who would insist a Label be put inside of every jumpsuit right next to the International laundry instructions showing a Glass of water with an x through it. Fashion leaders insist that jumpsuits Are the future of fashion. Ii we do not learn by our mistakes then we Are doomed to ruin our kidneys. Someone important said that. She was probably imprisoned in a jumpsuit. C 19b9 Emu Jombock