Vol. 6, No. 8 – April 9, 2007

 

 

NLBMDA Legislative Conference 2007 Preview

 

In just one week, dealers from around the country will descend on Washington D.C. to help make the case for the Innocent Sellers Fairness Act (H.R. 989) to Members of Congress.  NLBMDA began hosting this conference 20 years ago because one thing is certain: legislators listen when their constituents speak.  Developing and executing a successful grassroots campaign is critical to making progress on Innocent Sellers.  Dealers attending the 2007 Legislative Conference will put a “human face” on the need for common-sense legal reform and step up to bat for our industry.

 

NLBMDA’s goal for 2007 is to recruit as many dealers as possible to promote Innocent Sellers.  If you are unable to join us in Washington this month, there are other ways you can help.  First, visit www.buildthevote.org and send a message to your legislators telling them why Innocent Sellers is important to you.  You also can request an appointment with your legislators or their staff in their local district offices.  Another great way to put a “human face” on the legislation is to invite Members of Congress to tour your lumber yard or business operation.  NLBMDA also is collecting lawsuit stories to share with Members of Congress, so if you personally have been affected and are willing to share your story, please email Sarah Owen at sarah@dealer.org.  Finally, you can join Team ISFA by making a corporate or personal contribution for NLBMDA’s government affairs efforts.  Visit www.dealer.org for more details or call us toll-free at 800-634-8645 for more information on lumber yard tours and donations.

 

GET THE IRS TO HELP COLLECT FROM YOUR MOST DELINQUENT ACCOUNTS

 

At some point every business will encounter this problem: The customer who refuses to pay. You've tried every tactic at your disposal, but to no avail. What else can you do prior to writing it off or placing the account with a collection agency?

 

The IRS Advantage

The collection strategy works on the premise of reporting the debt as a loss. The IRS will view this as income to the debtor. In other words, your loss becomes your customer’s gain and as such can be reported to the IRS at yearend. It’s a well-known fact that the IRS routinely runs computer matches of 1099s against the recipient’s tax filing. This could increase their chances of an IRS examination letter and audit — something most businesses want to avoid.

 

Specifically, you would mail or fax a letter along with the appropriate IRS Form requesting their tax ID information. The letter should state that the debt has been deemed uncollectible and needs to be reported to the IRS as debt cancellation income. For more effectiveness, you should follow-up with a phone call to mention the enclosed forms and penalties for failure to furnish TIN.

 

Created in 1993 and reviewed by TIGTA in 2005, this innovative and powerful letter/script set can either be used by creditors directly or by third party collectors.

 

This changes the rules of the game. Once your debtor realizes the IRS could be examining their tax filing a little more closely, you’ll be surprised how quickly a check will arrive in the mail.

Source: NACM E-News Weekly Update, March 27, 2007 - quoting Ben F. Ricci, Stevens & Ricci, Inc.

 

NLBMDA and Habitat

 

NLBMDA will be working with Habitat for Humanity International to build a house in May 2007 in the Bay St. Louis, Mississippi area devastated by the 2005 hurricanes.

 

There are 3 ways that you can participate in this important project: 

• Monetary Contributions – Make check payable to NLBMDA attention Mississippi Habitat Project and mail to NLBMDA.

• Gift-In-Kind Donations – This is for building materials – call the NLBMDA office at 800-634-8645 for more information.

• Labor – If you or your employees would like to help build the NLBMDA/Habitat house, call the NLBMDA office at 800-634-8645 and they will place you with the proper Habitat contact.

 Let’s work together to show the kindness and generosity our industry has to offer to the Mississippi region and its people who are working to rebuild this area.

 

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

New Home Sales Down in February… According to figures released from the U.S. Commerce Department on Monday, sales of new single-family homes were down 3.9 percent in February. The annual rate of 848,000 units is the lowest level in almost seven years.

 

Source: LBM Daily, March 27, 2007

 

High School Grads Prepared For What?... While college students may become more demanding, a recent survey by the Society for Human Resource Management and the Conference Board acknowledges what many of you may have already suspected: Today’s high school students do not have the skills needed in today’s workplace. The biggest deficiencies are in the areas of written and oral communication skills, work ethic, critical thinking and problem solving, and ethics. The biggest problem I hear from my audiences is the lack of common sense which relates directly to critical thinking. No, I don’t have an answer for this problem except to think like Don Shula did when he coached the Dolphins. His idea was to draft the best athlete available and train them for the position. You can’t argue with the success of one of the winningest coaches of all time.

 

Source: Bob Losyk, MEd., M.B.A., C.S.P., a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm.  For more information on Bob’s keynotes, seminars, best practices facilitation, panel discussion leader, and products, please visit his websites at www.boblosyk.com or call 1-800-995-0344.

 

Missouri Legislative Update… Legislation to implement liability immunity to retailers who sell products that are not manufactured, assembled, installed or modified by the retailer was introduced in the 2007 legislative session at the urging of the Association and other business groups but will not pass this year. It is opposed by defense attorneys, among others.

 

Source: Dale Amick, MLA Missouri Legislative Director

 

U.S. and Canada to Meet Again on Softwood Agreement… Last week the United States alerted Canada's International Trade Minister David Emerson about the need for further discussions regarding Canada’s forestry programs and its intention to penalize exporters that go beyond set quotas.

 

Source: LBM Daily, April 2, 2007

 

Did You Know... The average single-family home (2,000 sq. ft) can contain 16,900 board feet of lumber and up to 10,000 square feet of panel products. Inch to inch, wood is 16 times more efficient as an insulator than concrete, 415 times as efficient as steel, and 2,000 times as efficient as aluminum.

 

Source: Lumbermenonline.com Bi-monthly newsletter, April 2, 2007

 

Pending Home Sales Show Effects of Weather, Possible Sub-prime Impact… A forward-looking index based on pending home sales indicates that bad weather, and possibly the loss of some sub-prime lending, will dampen sales closed in March and April, according to the National Association of Realtors®.

 

The Pending Home Sales Index,* based on contracts signed in February, stood at 109.3 – down 8.5 percent from February 2006 when it reached 119.4, but is 0.7 percent higher than a downwardly revised reading of 108.5 in January. Earlier, mild weather caused the index to spike at 113.3 in December.

 

David Lereah, NAR’s chief economist, said there has been a steady narrowing from year-ago readings since last July. “If it wasn’t for the unusually bad weather in February, we’d be seeing a better performance in pending home sales,” he said. “We also may be seeing some fallout from a decline in sub-prime lending, but a slight improvement in the more volatile month-to-month index is encouraging – the data suggests an underlying stabilization is taking place in the housing market, but it will take another month or two to clarify.”

 

*The index is a leading indicator for the housing sector, based on pending sales of existing homes.  A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

 

Source: National Association of Realtors, April 3, 2007

 

Wal-Mart Withdraws Industrial Banking Push… Wal-Mart Stores said Friday it will withdraw its controversial application for limited banking operations, after critics said the world's No. 1 retailer might use the bank as a stepping stone to offer a broader range of financial services.

 

"Since the approval process is now likely to take years rather than months, we decided to withdraw our application to better focus on other ways to serve customers," Jane Thompson, president of Wal-Mart Financial Services, said in a statement.

 

The world’s largest retailer applied in July 2005 to establish an "industrial loan bank" or "industrial loan company" (ILC) in Utah that would help eliminate third-party transaction costs that it currently incurs from processing of credit, debit card and electronic check transactions in its stores.

 

The Treasury Department defines an "industrial bank" as a limited service financial institution, distinguished from commercial banks because industrial banks do not offer deposit (checking or savings) accounts or any other type of financial services to consumers.

 

Though several other retailers, including Target and Harley-Davidson, already own banks, Wal-Mart's attempt has met with resistance from the banking industry, community banks and labor unions.

 

Mostly banks feared that Wal-Mart would use that so-called industrial bank status to eventually springboard into the commercial bank business, offering deposit, checking and loan services.

 

Source: CNN/Money, March 16, 2007

 

Senate Considers Numerous Budget Amendments on the “Death Tax”… During consideration of the Fiscal Year 2008 Budget Resolution (S.Con.Res. 21), the Senate debated several amendments relating to the repeal of the death tax.  An amendment to permanently repeal the tax, offered by Sen. Jim DeMint (R-SC), failed by a vote of 44-55. Other amendments to permanently extend the $5 million exemption and reduce the maximum rate to 35 percent were also defeated. 

 

The Senate approved one amendment, offered by Sen. Max Baucus (D-MT), which would leave room in the budget to make the 2009 provisions permanent ($3.5 million exemption, top rate at 45%). The Baucus amendment was approved by a vote of 97-1. The House adopted its budget resolution (H.Con.Res. 99) on March 29. The House bill does not address the death tax. A joint Senate/House conference committee will work to reconcile the differences between the two versions of the Fiscal Year 2008 budget.

 

Source: NLBMDA Advocate, April 4, 2007

 

Housing Finance Reform… On March 29, the House Financial Services Committee approved legislation, introduced by Chairman Barney Frank (D-MA), to create a new independent regulator for Fannie Mae and Freddie Mac.  The bill also requires a portion of their investment portfolios to be directed to a new affordable housing fund.  The legislation (H.R. 1427) is expected to pass in the House but will have to garner 60 votes in the Senate to overcome an expected filibuster.

 

Source: NLBMDA Advocate, April 4, 2007

 

Environmentalists Up in Arms Over Use of Rain Forest Timber for Boardwalk… Like many such structures, the boardwalk in Ocean City is built using wood from tropical rain forests thanks to its superior strength and resiliency. This boardwalk has spurred protestation from environmental groups, however, despite the fact the city was able to certify the timber was harvested in a responsible manner.

 

Source: LBM Daily, April 9, 2007

 

 

ROAD CREW CAUTION

 

Fatalities that occur at road-work areas are on the rise, according to the Federal Highway Administration – and 4 of every 5 work zone fatalities are motorists.

 

For maximum safety at work zones take these precautions:

• Expect the unexpected. Be alert for workers or work vehicles on or near the road. Traffic patterns may change. Be prepared to stop.

• Slow down and obey the flaggers. They are trained to keep traffic moving safely and have the same authority as a regulatory sign. You can be ticketed for disobeying a flagger’s directions.

• Keep your distance. Don’t tailgate – maintain a safe stopping distance between you and the vehicle in front of you.

• Minimize distractions. Give the work zone your full attention; driving in a work zone is not the time to scan radio stations or use your cell phone.

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

MLA is proud to endorse….

 

 

 

THOUGHT FOR THE DAY