Show October 2 197J 12 IR to Question Tkb ehtmn auvers sa Fry— Is f qpestkes and the President's StabGUattoe PKram by tbe lcal etfiee pvrlM the US Internal Revenue sad b published as a public service The eatema aits wen most frequently asked about vafts aad pices Ser-Ti- ec rr Q My local supermarket has always issued trading stamps and cashed personal checks Recently it “ciiscontinued thesea services Dees tills constitute price increase ? A Discontinuing trading but stamps Is a price increasecheck of va!r?-- g the practice is cot A decrease in the which quality of a service custermer a directly benefits constitutes a price increase Trading stamps are a direct economic benefit to the consumer since they can be redeemed for valuable merchandise However check cashing is a convenience service which does not directly benefit the customer and thus is not a price increase Q My landlord sent me a letter announcing a rent increase but he didn’t explain how he arrived at my base rent What should I do? A Contact your landlord and tell him that his rent increase notice is not in accordance with Stabilization regulations If he refuses to roll back the proposed increase or otherwise comply with tl e regulations call your local Internal Revenue office Businesses with sales of $50 Q I own a complex of apartor more need Price ments bat have never employed million Commission approval of their nore titan 23 empoyees Their or refund plan reduction set by a price pay has never been contract However companies with sales master employment under $50 million need only retain A ml subject to controls? notarized statements explaining are and thoroughly documenting A The rents you charge but controls economic to their voluntary reduction subject to employees your the wages paid programs are exempt because of the small to Q How do employers report business exemption units the Pay Board for employee workers earning Q If a firm lowers prices to contianing below the $275 and above base price levels and makes level? refunds to customers is it still exemption subject to profit margin A Reporting to the Pay Board limitations? for units containing workers above and below the exemption No Under a new Price ComPB-- 3 form and mission regulation a business level is done on a attachment The PB form reducing prices to base price an entire levels or below and making should be filled in for the no were $275 if there as refunds to customers is placed in unit the while involved the same position as a firm which exemption to out filled be should has never increased prices over attachment the that period and thus is not cover only the workers withinmore be will who earning unit subject to profit margin tbn $275 in straight time pay limitations Those companies that want to after the pay adjustment PB-- 3 forms are available at take advantage of the new Revenue office regulation but can’t identify any Internal customers eg companies Q How are prices on seafood dealing in cash sales may lower prices below base price levels products controlled? enough to offset revenues derived A The fist sale of seafood by a from price increases instead of is exempt fisherman or making direct refunds However form controls producer all later However firms must first do all they can to Economic to are subject find customers and make sales Stabilization regulations For refunds Companies making refunds must keep records of the example if a wholesaler buys names and addresses of their lobster from the fisherman who caught it this is the fist sale and customers is not subject to the regulations When the wholesaler sells the lobster to a restaurant this is the second sale and is subject to If you are not satisfied with his answer file a complaint with your local IRS office controls Q My landlord sent me a notice announcing that he was going to As long as he does not violate Price Commission regulations on and profit margins a seafood retailer or wholesaler may incrase the price of seafood to cover the increase cost erf the products to him Q Does the Internal Revenue Service have a form landlords can use to notify tenants of a proposed rent increase? mark-up- s A Yes A landlord at his op- tion may use IRS Form “Notification and Computation of Rent Increse or Decrease” to notify a tenant of a proposed rent increase This form follows the S-- 38 notification requirements specified in the rent regulations Copies may be obtained from any Internal Revenue office Q I received an IRS Form S-3- 8 from my landlord notifying me of a proposed rent increase Does this mean that tbe IRS has approved the increase? A No the use of this form by a landlord to notify tenants erf rent increases does not mean he has IRS approval of his actions If you believe the increase violates Stabilization regulations contact your landlord for an explanation raise rent I filed a complaint with tbe IRS but they said tbe increase was legal Can I appeal this decision? A Yes You have 39 days from the day you were notified of the finding of no violation to appeal to the Internal Revenue district office A subsequent appeal to the Price Commission is permitted Q Does a construction contract have to be renegotiated if tbe wage increases arrived at through collective bargaining Conhave been reduced by the struction Industry Stabilization Committee? A Yes Construction contracts are subject to renegotiation increases wage previously negotiated through collective bargaining by construction workers have been reduced by the Construction where Industry Stabilization mittee In addition Com- Price Commission regulations require tfialT'tEe' 'amount by which the final payments are to be reduced by renegotiation must fairly reflect the results of the Committee’s action including any resulting allowable cost tl e n c t ti |