Cell phone cameras are everywhere.
No wonder policemen not wanting scrutiny oppose allowing people to use them while they are on duty.
Consider the following photo of a Fox River Grove village pickup truck a Friend of McHenry County Blog was following in Libertyville recently:
The plate, starting with an "M," "is a municipal one. The full plate is M149474. Click to enlarge.
An IRS finding handed down January 31st will surely be the talk of the next meeting of the Township Officials of Illinois.
Use of Grafton Township Road Commissioner Jack Freund's truck has been ruled taxable by IRS.
It says that heretofore fringe benefits, such as the Grafton Road Commissioner’s vehicle and the reimbursement for dinners at the McHenry County Council of Governments, are income for Federal tax purposes.
And, since the state tax code is built upon the national one, probably subject to state income tax as well.
The Internal Revenue Service writes that Grafton Township owes the Federal government $2,030.36 for 2010 for income, Social Security and Medicare taxes.
“Fringe Benefit Issues” is what the Internal Revenue Service investigator was looking at.
A topic subject to a tirade by Trustee Gerry McMahnon at one of the last meetings I attended was the taxability of reimbursements for dinners at the McCOG. [I have to tell you, except for the volume of his voice, he seemed to be making sense.]
But the IRS Specialist disagreed.
The “audit,” for lack of a better term, specifically addressed this topic:
“In 2010, the elected officials and trustees of the Township received a stipend varying from $26 to $40 per month to attend monthly dinners for the McHenry County Council of Governments. The Township does not require these members to attend these meetings. The total amount of stipends issued to all officials and trustees was $1,300 for the year. These stipends were provided under a non-accountable plan.”
If I am interpreting the documents correctly, the Trustees, in toto, will owe taxes on an additional $729 because of the McCog dinner reimbursements.
Road Commissioner Jack Freund had similar $200 of non-accountable reimbursements, Supervisor Linda Moore $253 and Clerk Harriot Ford $118.
Freund was also cited for $3,125.70 which he received for “medical reimbursements made to the elected official. However, there was insufficient substantiation provided to receive reimbursement. Thus, the payment falls under a non-accountable plan.”
Freund was further cited for getting reimbursement for his spouse’s travel expenses. This included $120.56 for a number of meals, plus “a $35 spouse fee for the conference.”
Township Road Commissioner Jack Freund’s Ford F250 pickup truck was the subject of the final finding.
Purchased on December 8, 2010, “for the Road Commissioner’s use. The vehical was inspected by the Specialist and the vehicle is not deemed to fall into the category of a Qualified Nonpersonal Use Vehicle.
“There was no adequate substantiation of business uses v personal use of the vehicle.
“Therefore, the automobile lease value for this vehicle is $7,250 (see tables in Publication 158). As it was used for 23 days in 2010, the calculation is as follows:
Also targeted by the IRS were meals provided by Assessor Bill Ottley’s office when employees were not away overnight. Called “Day Meals” by IRS Examiner John Lauer, the reimbursements of those and non-overnight meals for Ottley and Moore totaling $369.28 have been deemed taxable.
Also mentioned are uniforms costing $480.01, but detail is not given regarding the employees affected. The report sys that “under an nonaccountable plan” are considered “wages and are treated as supplemental wages”…”reportable as wages on the employee’s Form W-2.”
“It as been determined by the FLSG Specialist that the taxpayer is wiling to correct all the above mentioned isues found during the examination,” one report concludes.
Implications for the 2011 tax year were not addressed in the report.
Linda Moore
“I was instructed to follow the precedent sent by the 2010 audit when amending the 2011 W-2′s,” Supervisor Moore said.
“All taxpayers know they that have to comply with IRS regulations.
“It’s important that township officials are IRS compliant, too, but I don’t look forward to delivering this bad news to my colleagues.”
It is not clear whether the elected officials will have to repay the township the cost of the fringe benefits targeted by IRS.
The State Constitution says that no elected official can earn no more or less than what was set before he or she was elected:
Illinois Constitution Article 7
Section 9 Salaries and Fees
(b)An increase or decrease in the salary of an elected officer of any unit of local government shall not take effect during the term for which that officer is elected.
Some of the documents can be found here.
A sixth note to the McHenry County Board from the Fleming Road Alliance:
To: Ken Koehler, Chair, McHenry County Board; County Board Members
From: Fleming Road Alliance
Re: Update on Fleming Road Alliance Position on Improvements for Fleming Road.
Dear County Board Representatives:
Speed Limits and Weight Postings: These are two major safety measures that impact the entire design.
Bull Valley Riding Club trails cross, residents walk, run and bike – even world class bicyclists – and sight-seers enjoy the road.
Safety and convenience of the residents and slow moving travelers is as important, if not more important, than the speedy passage of the traveler passing through in a vehicle.
TranSystems has stated that Illinois law prevents a lowering of the speed to less than 35 mph.
We have asked for a cite to that law repeatedly and not been answered. We would like the speed limit reduced to 30 mph. The number of driveways along the road, combined with the rolling topography, make it imperative to keep speed down and truck traffic to a minimum.
There are a number of examples where our County Roads have a 30 mph speed limit – providing precedent.
We also are requesting the County Board to set a weight limit on Fleming Road that is 6 tons per axle.
Limiting heavy vehicles will dramatically improve the longevity of this pavement and investment.
The gentle rolling hills and curves of Fleming Road were never made for 80,000 lb trucks (and soon to be 97,000 lb trucks by pending federal legislation).
It is dangerous and destructive to have them on the road.
We request that the County Board set the speed and weight for the entire length of Fleming Rd. at the lowest allowed by law.
Fleming Road Alliance Organizing Committee
Ed Bennett, Mary Moltman. Lisa Rhoades, Marti Jadd, Linda Ramsey, Stanley Jarosz, Phyllis Keinz, Kevin Keesee, Emily Berendt, Deb Staley, Bjorn Mattsson
Two sights caught my attention this New Year Eve’s Day.
The first was the overly-full parking lot at Crystal Lake’s Jewel.
How full was the parking lot at Crystal Lake's Jewel Food Store?
I’ve often wondered why people buy four-wheel drive vehicles.
One answer is obvious from this scene: to park where others cannot.
View of Crystal Lake with all three forms of H2O visible.
I drove on South Shore Drive in Lakewood and, with the recent rain in Crystal Lake, found this view of North Shore homes reflecting in the water. Fog was near the North Shore.
This one was on the back of a truck parked at the Algonquin Pool on July 1st.
It says,
This one was on the back of a truck parked at the Algonquin Pool on July 1st.
It says,
Latest Posts
