The Daily Sentinel from Woodstock, Illinois • Page 8

Page S-Woodstock (III.) Daily Sentinel-Friday, February 3. 1978 What are the chances of IRS audit? eirtiiel Salutes The Daily Sentinel salutes the following Individuals and organizations. I EDITOR'S NOTE Following is the fourth in series of five articles entitled "You and Your Income Taxes." They were written to help taxpayer prepare their 1977 tax returns. By MICHAEL DOAN Associated Press Writer WASHINGTON (AP) The Internal Revenue Service audits about one out of every 40 tax returns, but a taxpayer's chances of being audited in- chances of an audit would increase. An audited taxpayer usually gets a letter asking him to go to an IRS office for an audit.

Sometimes audits are done by mail, or, in case of a large corporation, at the company Itself. The taxpayer has a right to have an attorney present and can appeal to district IRS officials and eventually to federal courts. A delinquent taxpayer has to pay the amount due and interest besides. If the IRS thinks it can show the violation was deliberate, it can recommend prosecution for tax fraud. The taxpayer can be fined and sent to jail.

'v In 1976, the government recommended 3,147 cases for pros- ecution. Out of these, 1,193 persons were taken to court, 839 pleaded guilty and 138 pleaded no contest. Also, 216 were convicted after trials, 77 were ac- $50,000 and over, long form, 12.43 percent. The IRS decides which taxpayers to audit by putting the figures on their returns through a computer and by using a special formula. The formula tries to identify the returns "with a likelihood 'the tax liability would change if the returns were audited," the IRS says.

These returns are then reviewed by an IRS official who decides whether to order an The average taxpayer who receives most of his income from wages and who sends the IRS a W-2 form listing his earned income and withheld taxes has little to fear from an audit and probably will not be audited at all. High-income people are more likely to be audited because their returns are usually more complicated. 1C 1- I ff qA i 4-; crease ne naa iuii sauuy or takes unusual deductions. For 1976, the IRS re-examined 1.9 million individual tax returns, or 2.25 percent, and made taxpayers give up about $1.6 billion in alleged underpayments. By income, here is the percentage of individuals who were audited: 1 Under $10,000, 1.8 per cent.

to $50,000, 2.46 However, if someone earned less than $5,000 and declared 10 dependents, his return would probably be suspect and his McHenry Hospital treated 5,350 in '77 tf "nrlmiiiir ii i i ii mi inn rnim-iiirl 'tJ presented checks to Tom Parker (left), athletic director at Marian Central, and Jim Shipley, athletic director at Woodstock High School. The Woodstock License Beverage Association, representing 20 local establishments, recently gave $150 to each of the local high school athletic programs. Bob Pooler (right), president of the association, Hollywood came to Woodstock last week as Saint Mary's students presented its own version of the "Gong The' program was sponsored by the student council and grades two through eight presented two acts each. The range of entertainment was wide a magic show, baton twirling, singing groups, dancing and comedy skits provided fun and entertainment for everyone. Winners In the competition were "Happy Days Are Here Again" a "clownish" song presented by grade three girls Jodi Madsen, Shannon Welcome, Karen Glowackl, Jill Collins, Katie Sullivan, Renee Draffkorn first place and "If I Weren't A Student" presented by grade six girls Lauri Brenegan, Eileen Caufield, Jeanine Jerominski, Amy Haden -second place.

The dietary department prepared and served 100,002 meals to inpatients during 1977 and 48,438 meals to employees. In addition, the department also served between-meal nutrients as directed by each patient's physician. The hospital's six inhalation therapists administered 9,327 treatments requiring "intermittent positive pressure" equipment and 2,124 treatments with the smaller "ultrasonic" equipment The treatments are prescribed by physicians for a wide range of respiratory infections and disabilities. The purchasing department of the hospital also reported services during 1977 which reflected the needs of all departments except pharmacy and dietary. A total of 3,959 orders (for everytning but medications and food) were processed, obtained and distributed.

Each order ranged from one unit to as many as 12 items. The hospital will hold its annual dinner meeting Saturday night at the McHenry Country Club, and will hear reports from the board of directors, executive director, auxiliary and medical-dental staff. Chicago Tribune columnist Jack Mabley will be the featured speaker. McHENRY More than 5,350 inpatients were cared for at McHenry Hospital during 1977, according to the hospital's annual report for 1977, released today. The total, which excludes newborns, includes 716 persons who were, admitted to the hospital's Intensive Care Unit after accidents, heart attacks and major surgery.

A total of 3,199 surgical operations were performed at McHenry Hospital during 1977, of which more than 800 minor operations were performed as outpatient surgeries. Surgeons operated on these outpatients by utilizing the hospital's surgery facilities and postanesthesia recovery room without requiring that the patient be admitted to the hospital overnight before or after surgery. Emergency patients who were treated by the hospital's emergency department numbered 16,889 during 1977. The radiology department of the hospital performed 22,181 radiology procedures during its first full year of operation. Of these, 9,720 were done for emergency patients and outpatients.

The hospital's pharmacy department, which dispenses medications affd intravenous solutions in accordance with physicians' orders, prepared and dispensed 323,860 medications and 25,324 intravenous admixtures. quitted and cases against 71 were dismissed. "Tax fraud is a crime. It doesn't matter how much mon-ey is involved. It doesn't mat.

ter who the person is," an IRS official said. Not all returns are audited by the computer system. The IRS selected 50,000 returns at random for intensive audits in 1976, but no such audit is planned this year. Often IRS auditors will tell a taxpayer he paid too much in taxes and is entitled to get some money back. "People come in to the auditors and are really overjoyed to get a refund," an IRS official said.

"People usually go to an audit expecting to have to pay more money." All returns are scanned at least briefly to determine whether there are mathematical errors, and whether the return is signed. Regional planning is topic "Regional planning is it really necessary?" is the question that will be explored Thursday at 9:30 ajn. when the Woodstock-McHenry League of Women Voters meets at the Presbyterian' Church on South Tryon Street The meeting, which is open to the public, will feature a panel consisting of Steve Aradas, McHenry county planner; June Girard, chairman of the County Zoning Board of Appeals, and Diane Easty, member of the McHenry County Board and commissioner of the Northeastern Illinois Planning Commission. "We want to give people a chance to meet with some of the people who are planning the future of McHenry said Geni Braun of Harvard, co-chairman of the meeting. "We will have to live with their decisions for a long time," she added.

Thursday's meeting is the second in a series of three meetings presented by the league's Cities and Urban Crisis Committee. Since last May the group has been collecting information relating to the problems of regional and municipal planning in preparation for the meetings. "This study has been fascinating," said Judy Comerio of McHenry, co-chairman of the committee. "I think we have a much better understanding of how important planning is to a community," added Sherry Flora of Woodstock, a member of the committee. In March, the group will delve into the specific problems of municipal planning.

Anyone interested in either meeting who would like more information can call Sherry Flora Consumer complaints to be speeded up? without compensation. SPRINGFIELD Attorney General William J. Scott today announced plans for a test program of arbitration to speed up resolution of consumer complaints. The test program of an arbitration panel will be set up in Scott's Springfield office, and will handle appropriate com The second phase of the arbitration operation will be scheduling mediation sessions for the consumers and business people who agree to have complaints resolved by arbitration. Scott said, "The arbitration program is designed to provide the Consumer Fraud and Deceptive Practices Act." Scott also said, "This program will provide an avenue for the businessman who wants to satisfy a customer who feels he or she has been fairly treated, without being involved in the onus of a consumer fraud situation." Scott said the arbitration program will deal with instances where a case may not involve' a large number of consumers, or a large sum of money, or a simple factual dispute is involved, or where there's a difference of opinion over poor workmanship.

Other types of cases, Scott said, will continue to be handled win the usual types of legal enforcement The arbitration service will be provided to the public and business people at no charge. Statewide, the Attorney General's Consumer Protection Division handles about 25,000 consumer complaints per year. a resolution of mat type ot plaints from the Central Illinois area. jicomplaint wnere the consumer The first phase in setting up feels cheated, but where the the program will be training facts of the matter do not volunteers who will serve on the clearly provide a solution under Your SPEED QUE EN JVLIM Servfcin tester Servi was donated to the city to be used in whatever way the administrators see fit toward operating expenses of the opera house. (Sentinel Photo Tim Brown) Woodstock Opera House Director Doug Rankin Thursday received a check from Darlene Fiske, president of the Woodstock Fine Arts Association, for $1,500.

The money resulted from a surplus in WFAA funds and the Woodstock Servint Ana 318 Clay for Over 49 Yean fa Street 338-5611 AND SHOP AT DISCOUNT Bgl WESTERN UNION (i 3 Shopping Centers BEDDING BUST SH l-f Tinw McHenry" Crystal lake Antioch FURNITURE eotfeloum aiid cure hcdc Dinncn YRARS HAD TO BUY WK COULDNT Kl-MST TH8f GKKAT BUYS BhKOKI-PRItrS VP MARK DOWN PKKSI-NT STOCKS TO TllfM l-AST MUST MARK ROOM FOR NEW ARRIVALS. START CLEARANCE IMMKDJATF- OPEN FRIDAY THAN OUR WAREHOUSE 9:30 TO 9:00 SUNDAY 11 TO 3 Wt CoM't Resist Thest Srtat lBvjs Ufvt Prkts WE ARE REALLY JAMMED FOR SPACE. NOWS THE TIME TO A benefit dinner, auction and dance Will be held for the Woodstock Rescue Squad Saturday at the Woodstock Moose Lodge. Dinner, at $3.25 per person, will be served from 5 to 8 pjrt. An auction of articles donated by many Woodstock area businesses will begin at 8 pjn.

Music Will be provided for dancing from 9:30 pjn. to 1:30 ajn. For more information, call KROEHLER. SIMMONS. ENGLANDER IIUKKT! dont miss OUR BUSINESS.

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