Highland Park Public Library Local Newspapers Site

McHenry Plaindealer (McHenry, IL), 12 Jul 1974, p. 10

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/stem , oiler George W. g has announced the .ementation of a central ccounting system for all of state government that will earn a $760,000 yearly bonus for Illinois taxpayers and place state spending in a fishbowl for public scrutiny. "I believe that Illinois is the first state in the nation to have a uniform centralized system for tracking and accounting for every tax dollar," Lindberg "Ourf system includes the state's ten tax-supported universities," Lindberg said," which I think makes it unique. I : know of no other state where the day-to-day fiscal operations of government and higher education will be accounted for in the same system." "Traditionally there have been some very dark corners in our state spending process. By collecting all the state's spending information in a central location, we are going to be able to see into those dark corners," Lindberg said. The new system, for example, includes an index to all the state's professional services contracts and real estate leases and a comprehensive tracking of money paid to private firms and individuals. There was no clear view of this-spending area until the index became available earlier this year in TAX FACTS SO YOU'RE BEING AUDITED Your federal individual income tax return - Form 1040 has been selected for audit, and you're wondering why. According to the Internal Revenue Service, the most likely reason your return and ince.of ?mf Li systemfLindberg said. Lindberg praised the work of the 1970 Constitutional Convention, which produced a new organic law for Illinois and created the, Comptroller's office as the central location for fiscal information and control. i t , J E ...that's what you get with an Elec-Tralc tractor. Quiet, all-electric, Elec-Trak tractors come in 8 models ... there's one to fit your lawn size and budget. You can quietly mow in the early morning or late evening . . . and never disturb the neighborhood. You can even bring along a portable radio and listen to the ball game as you mow. George P. Freund, Inc 4102 W. Crystal Lake Rd. McHeniy.lll. PH.- 815-385-0420 t - many others have been chosen for a further review, is simply that they appear to contain errors. All individual and small corporation income tax returns go through a sophisticated processing system called "Discriminant Function (DIF) as they pass through the IRS computers. DIF hasn't always been a part of the IRS tproce§sing system. In fact, it has been in use at the Service Centers only since 1969. At one time the Internal Revenue Service relied on the "eyeball" method to pick out returns for audit. Large numbers of examining officers scanned and selected returns on the basis of their content and the officers' experience in spotting those needing a closer review. Later the IRS enlisted the aid of computers, programming them with criteria based on past experience of examining officers. Under this method the computers would sort out returns for possible audit andf then the examiners would review them to double check the reasons for the selection. The use of the computers was soon found to be a step in the right direction, since it saved time and provided greater uniformity in the initial selection of returns for audit. However, this initial system of criteria developed from examiner experience still did not ensure that IRS audit manpower was being spent on those returns with the greatest need for examination based on the probability of change in the tax reported. After considerable research the IRS found it could determine the relative importance of each significant * return characteristic a$ it , related to the frequency of tax error. Eventually, this study led assigning weights to these return items and their inter-relationships. That is the basis for DIF. The DIF system today weighs the relationships of all of the key return items and produces a score for £ach taxpayer's return. Those returns having a high score are identified as having the greatest probability of tax errors. In other words, under DIF, relationships between return characteristics and past results'5 of audits of similar types of returns are what count. Whether or not items reported are higher or lower than average amounts is of no consequence. How the items go_> together to make up the overall picture and whether that composite tax return image looks error prone are what tips the scales. \ Screening by IRS classifiers determines whether returns selected by the computer really need auditing. For example, DIF, which is a nation-wide system, cannot take into account unique local cond/tions. Screeners can identify local variations such as wh&i a state's real estate taxes are high. X Returns found to need audit by both the computer and humans are ultimately selected for examination. In addition, returns not selected for audit by DIF may, be selected at random, as a n^eans of checking the system. Or returns may be examined because they are related to returns already undergoing examination, such as those of partners in a business. Some returns are identified for audit when IRS matches associated documents, such as Forms W-2 ,, PAGE l. • IM.AINDKAl.EH KKIDAY. JULY U. I«M and 1099 with information reported on the 1040. But whatever the mean£ for selecting your return for audit, the purpose remains the same - - to correct those returns with apparent errors so that only the tax due is paid the government. Last year, according to the IRS, 1.8 million audits ended with $5.1 billion in additional revenue for the government, and $275.7 million in reduced taxes or increased refunds for taxpayers. Seek the Lord, and his strength: seek his face ever­ more. Remember his marvellous works that he hath done; his wonders, and the judge­ ments of his mouth; Psalm 105. 4. ) A' ICE COLO WATERMELON • ">L,ES SEE US «0» FOR ESESH FRUIF. WE FIOEF '• KME GRIPES. PERCHES, CRHFR10URES,HW1EY0EHS I AND MUCH MORE. WE ALSO HAVE FRESH VEGETABLES INCLUDING POTATOES AND CABBAGE. Harms Farm Center r[ACROSS FROM WEST CAMPUS HIGH SCHOOL W 4727 W. CRYSTAL LAKE RD. McHENRY PH. 385-3074 or 385-801 uMcHen MORNSBYS family centers Isn't it time you stopped putting off tonforrow? See your Wausau Man today. Isn't it time you thought about the way you want to live? Your family deserves the best you can give them ... a home of your own built where you want to live, city or country. Nobody really wants to spend their life in cramped apartments, crowded mobile home parks or rundown older homes, but neither can they afford to pay the price most builders are asking. With Wausau's assembly line technique, high volume buying and manufacturing efficiencies, we curb the spiraling costs of homes. That's why people who are making today the beginning of their tomorrow are moving into Wausau Homes. Comfortably priced from $12,388.00 to $45,000.00 See us now for full details on your new home. Over 75 designs in ranches, split-levels and split-foyer 2 to 5 bedroom homes. We think you should start living today. Isn't it time? ZZ/tMML [JQomtt- MODEL WOODSTOCK N "A Good Neighbor Anywhere" Open Daily 1 - 6 p.m. Sunday 1 to S p.m. V WAUSAU HOMES INC , 1974 Marengo Rt. 176 P & F BUILDERS, INC. No. Rt. 14 • 15-459-0033 Men's SPORT SHIRTS Assorted Pattern Cool Summer Knits Sizes 17% 'A v Reg. 3. Summer Purses White Leather- Canvas -Straw Values To '11.97 V, Refreshing Cepocol 32 oz. i-x&i&i Our R*g. 1.46 ipacol ladies Blazers ALL SIZES Assorted Sizes Color-Patterns & Styles Reg. To s148' V, PRICE J uv ;X\ R*lr«thlrtg mouthwash > and gorgl* far dally I car* of Ht* mouth Worm Bedding by Weber Keep fishing worms fat-health-alive for fishing needs. Reg. 1" 0<7C Hill Reed Curtains Assorted sizes, colors & patterns 1 Tl-'-Jl Jll 31 ' n ITEMS AVAILAE Cold Power Detergent 72 Reg. 1." SALE Woodstock

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