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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20509
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
August 6, 1998
Date of Report
(Date of Earliest Event Reported)
INTERNATIONAL HERITAGE, INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
Nevada 002-97690-D 87-0421191
(State or other juris- (Commission File No.) (IRS Employer
diction of incorporation) I.D. No.)
Carolina Place
2626 Glenwood Avenue, Suite 200
Raleigh, North Carolina 27608
(Address of Principal Executive Offices)
(919)571-4646
Registrant's Telephone Number
Item 1. Changes in Control of Registrant.
None; not applicable.
Item 2. Acquisition or Disposition of Assets.
None; not applicable.
Item 3. Bankruptcy or Receivership.
None; not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
None; not applicable.
Item 5. Other Events.
On August 6, 1998, the North Carolina Department of Revenue
provided the Company with an Auditor's Report regarding Sales and Use Tax for
the period July 1, 1995 through February 28, 1998 (the "Audit"). On August 9,
1998, the Company received the Notice of Proposed Assessment ("Notice"). The
Notice provides for total payment in the amount of $921,758.15, comprised of
$653,931.64 in additional sales and use tax as based upon the findings of the
Audit, $163,482.91 in penalties and $104,343.60 in interest.
International Heritage, Incorporated has requested a hearing on
the findings of the Audit due to the fact that it believes certain items
included in the assessment base were determined incorrectly. Said hearing
will be held on or before December 7, 1998.
Item 6. Resignations of Registrant's Directors.
None; not applicable.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
None; not applicable.
Item 8. Change in Fiscal Year.
None; not applicable.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned hereunto duly authorized.
INTERNATIONAL HERITAGE, INCORPORATED
Date: 09/15/98. By: /s/ Stanley H. Van Etten
______________________________________
President, CEO and Chairman of the Board
