LETTER TO GEORGE W. BLOOD FROM HAMEL, PARK, MCCABE & SAUNDERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-00868R000100030033-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 20, 2009
• Sequence Number: 33
• Publication Date: December 10, 1976
• Content Type: LETTER

Approved For Release 2009/08/20: CIA-RDP87-008688000100030033-7
LEE 1. PARK
EDWARD A. McCAGE
K. MARTIN WORTHY
FULLER HOLLOWAY
ARTHUR PETER, JR.
HENRY ROEMER McPHEE
GLENN L. ARCHER,JR.
WM. H. BRADFORD, JR.
HN W. PETTIT
HARD M. ROBERTS
HN P. BANKSO N, JR.
ARTHUR LEE OUINN
STUART C. WHITE
JOHN G. D[GOOYER
BERNARD T. RENZY
JEROME P. WEISS
MARK SUL LIVAN III
ANTHONY J. THOMPSON
JOHN H. SPELLMAN
A. FAXON HENDERSO N,JR.
MICHAEL C. DURNEY
CHARLES M. BRUCE
LO VISE A. SUNDERLAND
JOE DI%ON EDGE
JEFFREY M. PETRASH
J, GARY MCDAVID
?
HAMEL, PARK, Mc CAGE S SAUNDERS
1776 F STREET, N. W.
WASHINGTON, D. C. 20008
December 10, 1976
Mr. George W. Blood, President
Fortement Association, Inc.
Hampton Plaza - Suite 1103
300 East Joppa Road
Towson, Maryland 21204
~.- ~ n
~: ~ ~. ~ 19ib
LAMBERT H. MILLER
ARTHUR L. OUINN
CHARLES W. NYOUIST
COUNSEL
Please be advised that under the Tax Reform Act
of 1976 (P.L. 94-455, October 4, 1976) amounts contributed
by an employer to a prepaid group legal services plan and
benefits received by an. employee under a prepaid group
legal services plan are excludible from the employee's
income for taxable years-after December 31, 1976 and end-
ing before January, 1, 1982. Contributions paid or accrued
to a prepaid group legal services plan have always been
deductible by the employer and the Tax Reform Act of 1976
does not change this rule. Such a plan must be a qualified
plan within the meaning of Section 120 of the Internal
Revenue Code, as amended, which among other requirements
must not discriminate in favor of employees who are officers,
shareholders, self-employed or highly compensated; not more
than 25 percent of the amounts contributed during the year
may be provided for individuals (including spouses and
dependents) who own more than 5 percent of the 'stock or
capital or profits interest; and must be paid to an insur-
ance company, an organization providing personal legal
services or indemnification against the cost of personal
legal services, or to a Section 501(c)(20) organization
or to another organization exempt from Federal income tax
under Section 501(c) which pays or credits the contribution
to a Section 501(c)(20) organization; or any combination of
the above.
Very truly yours,
HAMEL, PARK, McCABE & SAUNDERS
By : ~~~~cw
WHB :pb
CHARLES D. HAM EL (1881-1970)
BENJ. H. SAUNDERS (1894 -197
GERALD D. MORGAN (1908-1978
Approved For Release 2009/08/20: CIA-RDP87-008688000100030033-7