Reno Gazette-Journal from Reno, Nevada • Page 1

No count on dealer compliance, IRS says By HELEN MANNING Gazette writer among Northern Nevada dealers may be less than 10 percent. And Steve Doyle, the Sahara Tahoe dealer who has been working with San Mateo tax lawyer Dennis Di Ricco, also said there's still a lot of private activity going on behind that IRS hardline. IRS has been pushing since early this year to enforce taxation on tips. The IRS says the federal government is losing $30 million to $50 million in upaid taxes each year. Doyle said meetings this week in Las Vegas disclosed that the real obstacle to the "closing agreement" that could resolve the impasse between dealers and the IRS "terns from Washington, D.C.

rather than Reno. "So one of the most significant things they agreed to was to put Di Ricco directly in touch with the IRS chief counsel in Washington," and see If an agreement can still be achieved, he said. Doyle said any figure on how many dealers had reached agreement with IRS by midnight Thursday would be only a guess on his part, but "I think five percent." Dealers who make such agreements know they may be called on to testify against other dealers, he explained. "That's the reason individual compliance is not an attractive offer It would be suicidal for a dealer to risk the possibility of being used to prosecute other dealers, and it would be very open," Doyle said. "He can say whatever he wishes," countered IRS spokesman Marty Bibb.

"Right now we don't have a total. It has not been a priority for us." Nor would he give any confirmation to reports of behind the scenes talks that could still lead to a new compromise. "Our basic understanding is, there'll be no movement to a closing agreement the dead-Please see TOKES, P. 2 The Internal Revenue Service says It will have no count until January on how many Nevada casino dealers have agreed to start reporting and paying taxes on tokes, a spokesman said today. The deadline for individual dealers to agree to the IRS deal to avoid income tax audits was midnight Thursday.

A spokesman for casino dealers fighting the IRS crackdown says he believes the compliance rate Gazette A Gannett Newspaper Reno, Nevada, Friday, December 11, 1981-25 Closing Stocks may force remove IReagaiini of U.o otozeos horn Loby WASHINGTON (AP) State Department officials told executives of U.S. oil companies today that President Reagan will use legal sanctions, if necessary, to force the removal of all U.S. citizens from Libya. The companies, whose American technicians help the regime of Col. Moammar Khadafy run the lucra tive Libyan oil Industry, were told that the United States might try to extradite U.S.

citizens who attempt to reside in Libya or who travel there without permission. The company representatives met with Ernest B. Johnston, deputy assistant secretary of state for economic affairs, in a series of meetings intended to ex plain Reagan's decision Thursday to invalidate U.S. passports for travel to Libya and to urge Americans living there to return home. It was learned that at least one of the firms that met with Johnston, the small, independent Coastal Oil is prepared to remove its six employees and their dependents from Libya.

One company representative who met with Johnston and other officials told reporters, "They told us what they had done and said, 'The president is serious about this and we are prepared to apply sanctions to make this work'." The executive asked not to Please see REAGAN, P. 2 MWWfj w. ilm iiii.iiiiiiii ii iiMum jmiliiomumwiii nvl a I 'lit' it 'flit Buena Vista auctioned i. -it 4 'i' i 4 vk4 Vi Ii fc rK' IW4i, V. i Gazette photos by Marilyn Newton Some of the 16,000 phony tokens.

Bruce Laxalt and Ron McAllister display counterfeiting tools. Reno slog operatooo bysted By PHIL BARBER Gazette staff writer Officers seized 1,000 pounds of phony lead dollars and dollar-sized slot machine tokens in a search Thursday after the Wednesday night arrests of motel guests Nicholas G. Maniatis and Christos Papadopoulos. Both agencies received tips about the slugs. The Secret Service, a branch of the Treasury Department, was told the men had abandoned some molds last week at a Sacramento motel.

And Gaming Control officers were summoned to a casino where the men were a week ago. ployed cook from Portland, and Papadopoulos, a 36-year-old cab driver from Las Vegas, remained in the Washoe County Jail this morning in lieu of $9,000 bail. They were charged with making a Please see SLUG, P. 2 Ron McAllister, Gaming Control deputy chief, said officers questioned the pair about the appearance of slugs at Boomtown, but released them for lack of evidence. They arrested them Wednesday at the Money Tree.

Maniatis, a 50-year-old unem Nevada Gaming Control and U.S. Treasury agents hit a $16,000 jackpot at the Gold Rush Motel in Reno Thursday. By DICK COOPER Gazette staff writer Developer Fred Gagnon's common-kitchen apartment house was auctioned off today to Nevada First Thrift in a foreclosure sale, but the fate of the controversial Buena Vista project remains unclear. Nevada First Thrift, which loaned Gagnon about $300,000 to build the development, assumes the builder's interest in the property in the absence of any bids at the foreclosure sale higher than what the lender was owed on the project. But Nevada First Thrift owner Sidney Stern said afterward he has made no decision about what to do with the Buena Vista complex.

"We have it and as to what happens now, I have made no decision," he said. Stern said he may sue the city of Reno for losses he has Incurred in financing the project. Gagnon could not be reached for comment, but a representative said the builder would have "no comment" on the foreclosure sale. In the past, Gagnon has said he stood to lose about $400,000 if he lost the Buena Vista project through foreclosure. The Reno City Council earlier this year denied Gagnon a business license to operate the development as a common-kitchen apartment house, after determining the project was built to a higher density than allowed by zoning in the neighborhood.

As construction was near-lng completion, the council heard an appeal by neighbors and decided the 32-bed-room, 8-kitchen development consists of 32 rather than 8 units, although the Department of Regional Planning had construed it in the beginning as an 8-unit project. Stern and Gagnon have said the council's action blocked a pending sale of the Buena Vista property which would have settled Please see BUENA, P. 2 i', i 1 Cable television Uov iff has reacted to young viewers duced by Warner Amex. It is called Nickelodeon and is a mixed bag of entertainment, education, sports and news programming for children. These include programs with super-heroes teaching reading; "Livewire," billed as television's only children's talk show, and "Reggie Jackson's World of Sports," new this year, with the home-run slugger hosting junior athletic contests all across the country.

Calliope on cable is a respected award-winning children's series. Special symphonies and cultural events that some parents have sought for years for their children Please see CHILDREN'S, P. 2. entertainment medium and doubled its reach. That's when people started to ask about what cable television might do for or to kids.

They're asking it even more today with about one out of every five American houses hooked-up to a cable, some 18 million cable subscribers, and cable well on Its way to capturing a third of America's households. That's the critical level advertisers consider necessary for cable to qualify as a mass medium. Cable television has not been unmindful of children during its growth period. An entire channel devoted to children's programming is pro BY JOHN T. Mc GOWAN Gannett Newi Service NEW YORK For more than thirty years cable television was just a way of getting good reception out in the sticks.

About ten years ago it became the city slicker's pay-tv shortcut to home team games not carried on the regular channels. Then satellite transmission freed the industry of regulatory bonds and, with a new home movie boom, cable television uninhibited by commercials and the search they spark for the "lowest common denominator" audience blossomed into a full Inside Busine Region Nation CHRYSLER Weather VARIABLE HIGH cloudiness increasing Saturday with a chance of rain late in the day. Highs in the upper 40s and low 50s. rumors that the company is preparing for a merger with a foreign company. A kENCT aftist puts emotions into drawings of a rat seeking acceptance in the Christmas manger scene.

Page 25 VIOLENT VOLCANIC eruptions are possible in all Western states. Page 3 Page 19 Astrograph 43 Bridge 59 Business news 18,19 Classified ads 37-51 Comics 59 Crossword puzzle 42 Doctor column 59 Editorials ....4 Lifestyle 25,26 Markets 18,19 Obituaries 14 Public notices 9,10,51 Sports 53-57 Television Ent. Vitals 14 Weather 2 Page 2 World Local Sports btt.t.tk JEAN King's former lesbian lover today was ordered by a judge out of the tennis star's Malibu, beach house. Page 6 THE WHOLE federal tax-cut package could be poisoned by the public conception of the buying and selling of corporate benefits. Page 9 Index A PERSONAL aide to Iranian revolutionary leader Aya-tollah Ruhollah Khomeini was assassinated today.

Page 12 RENO HILTON will be the new name for the Sahara after its sale is complete, company officials say. 7 Page 17 Entertainment Guide Amusements 60-63 Animal Doctor 59 Ann Landers 59 THERE WERE surprise baseball trades during the last day of meetings today. Page S3 ORIGINAL DEFECTIVE.