TEMPORARY AND PROPOSED REGULATIONS ON REPORTING OF
                NONPAYROLL WITHHELD INCOME TAXES

     In late 1993 the Internal Revenue Service issued final
regulations requiring persons who are required to withhold on
"nonpayroll" payments to report the withholding on new Form 945,
Annual Return of Withheld Federal Income Tax.  Nonpayroll
payments include pensions, annuities, IRAs, and reportable
payments subject to backup withholding.

     Under the final regulations, which are effective with
respect to nonpayroll payments made on and after January 1, 1994,
if a person is required to file a Form 945 for any calendar year,
then the person must file a Form 945 for each subsequent calendar
year, whether or not the taxpayer has a liability for nonpayroll
taxes for that subsequent year.

Contents of Temporary/Proposed Regulations   

      To reduce taxpayer burden, the IRS is issuing regulations
that remove the requirement to file a Form 945 for calendar years
in which there is no liability for nonpayroll taxes.  The
regulations provide that a Form 945 need be filed only for those
calendar years in which there is a liability.  The full text of
the regulations as well as information on how to submit comments
on the regulations is set forth in the Federal Register dated
October 16, 1995.