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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
November 6, 1996
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Date of Report (date of earliest event reported)
RETIREMENT CARE ASSOCIATES, INC.
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Exact name of Registrant as Specified in its Charter
Colorado 1-14114 43-1441789
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State or Other Jurisdiction Commission File IRS Employer Identification
of Incorporation Number Number
6000 Lake Forrest Drive, Suite 200, Atlanta, Georgia 30328
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Address of Principal Executive Offices, Including Zip Code
(404) 255-7500
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Registrant's Telephone Number, Including Area Code
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ITEM 5. OTHER EVENTS
On November 6, 1996, National Assistance Bureau, Inc. ("NAB") and Gordon
Jensen Health Care Associates ("Gordon Jensen") announced that they had each
filed an action by the U.S. District Court for the District of Columbia to
appeal the Internal Revenue Service's ("IRS") recent determination to revocate
their status as tax exempt organizations.
The IRS alleges that interest-free cash advances in unspecified amounts
were made indirectly by NAB and Gordon Jensen to its respective officers and
directors and certain related for-profit corporations and that these advances
constitute private inurements in violation of Section 501(c)(3) of the
Internal Revenue Code. The IRS determination, if sustained, would be
retroactive to January 1, 1991. NAB and Gordon Jensen strongly dispute the
IRS's allegations and believes that their tax exempt status will be upheld.
In connection with its determination, the IRS has also commenced
examinations of certain tax exempt bond issues involving NAB and Gordon Jensen
to determine whether the interest on such bonds should continue to be tax
exempt. NAB and Gordon Jensen believe that the bond issues in question comply
in all respects with the requirements of the Internal Revenue Code and that
interest payments on such bonds are, and will continue to be, tax exempt.
NAB owns two health care facilities managed by Capitol Care Management
Company, Inc. ("Capitol Care"), a wholly-owned subsidiary of Retirement Care
Associates, Inc. (the "Company"). Gordon Jensen owns eight health care
facilities managed by Capitol Care and one facility leased by a subsidiary of
the Company. The IRS has not made any allegations concerning the Company or
Capitol Care, which are not parties to the proceedings filed by NAB and Gordon
Jensen and which have no ownership interest in NAB or Gordon Jensen. The
ultimate outcomes of these proceedings are not expected to have any material
adverse effect on the Company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RETIREMENT CARE ASSOCIATES, INC.
Dated: November 13, 1996 By /s/ Chris Brogdon
Chris Brogdon, President
