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FREE April 7-13, 2022 † Vol. 47, No. 38 A rocky recovery ...

April 7-13, 2022 | Illinois Times | 118 MUSIC | Marty Brown16 FOOD | Matzo toff ee14 SPORTS | Baseball is backFREE April 7-13, 2022 Vol. 47, No. 38 Addiction, overdoses have climbed Addiction, overdoses have climbed since the start of the pandemicsince the start of the pandemicA rockyA rockyrecovery recovery A rockyrecovery 10 ADDICTION |10 ADDICTION | Dean Olsen Dean Olsen2 | | April 7-13, 2022 April 7-13, 2022 | Illinois Times | 3 NEWSE ditor s noteThe taxman cometh for your virtual yard saleTAXES | Bruce RushtonDeath and taxes remain certainties, and in Illinois, the latter has become more certain than is tax season marks the second year that the Land of Lincoln has targeted the gig economy by requiring companies that process digital think PayPal or Venmo to report payments at thresholds below what the Internal Revenue Service specifi es. Under federal law, electronic payment processors don t have to report money changing hands until someone receives at least $20,000 in at least 200 transactions.

federal law, electronic payment processors don’t have to report money changing hands until someone receives at least $20,000 in at least 200 transactions. Starting in 2020, Illinois lowered the threshold to $1,000 with at least four transactions. In recent years, a dozen other states, concerned about taxes

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Transcription of FREE April 7-13, 2022 † Vol. 47, No. 38 A rocky recovery ...

1 April 7-13, 2022 | Illinois Times | 118 MUSIC | Marty Brown16 FOOD | Matzo toff ee14 SPORTS | Baseball is backFREE April 7-13, 2022 Vol. 47, No. 38 Addiction, overdoses have climbed Addiction, overdoses have climbed since the start of the pandemicsince the start of the pandemicA rockyA rockyrecovery recovery A rockyrecovery 10 ADDICTION |10 ADDICTION | Dean Olsen Dean Olsen2 | | April 7-13, 2022 April 7-13, 2022 | Illinois Times | 3 NEWSE ditor s noteThe taxman cometh for your virtual yard saleTAXES | Bruce RushtonDeath and taxes remain certainties, and in Illinois, the latter has become more certain than is tax season marks the second year that the Land of Lincoln has targeted the gig economy by requiring companies that process digital think PayPal or Venmo to report payments at thresholds below what the Internal Revenue Service specifi es. Under federal law, electronic payment processors don t have to report money changing hands until someone receives at least $20,000 in at least 200 transactions.

2 Starting in 2020, Illinois lowered the threshold to $1,000 with at least four transactions. In recent years, a dozen other states, concerned about taxes going unpaid, also have instituted stricter requirements than the federal government, which will lower the threshold to $600 for next tax season on 2022 money transfers. Th is is a big thing, says Tom O Saben, a tax preparer who is assistant director for professional tax education and outreach at the University of Illinois Tax School in Urbana. Now, people are going to receive 1099-Ks just because they might have a yard sale and they decided to accept payment from PayPal or Venmo or some other third-party electronic payment processor. Maura Kownacki, spokeswoman for the Illinois Department of Revenue, couldn t say by how much, if any, tax collections have increased since the state standard changed last year, but the department has been using reports from payment processors to identify potential problems. As a result of getting the 1099-K information, IDOR has been able to identify numerous taxpayers underreporting their sales and tax, she wrote in an email.

3 Th eir fi ling inaccuracies are being corrected and the forms will continue to work to generate signifi cant audit dollars as well as increase compliance. Amy Jasmon, a Springfi eld tax preparer, says that she has clients who didn t know the extent of electronic trails until they received 1099-Ks. Most come to me and say, I ve got this weird thing, I don t know what it is, she says. Th e main people who are getting stuck with it are people who are trying to clean out their houses and put things on Amazon or eBay. Th ose internet currencies are now being tracked and people are now having to pay taxes on it. Taxes always have been due when digital profi t is made, but until last year in Illinois, it was often an honor system for small-timers: Since, under federal rules, no reports are required from processors until $20,000 changes hands, it s been up to taxpayers who received less to divulge just how much on their tax returns. Some taxpayers may not report the income if they do not believe the IRS has received an information return, observed the Treasury Inspector for Tax Administration in a 2019 report that found billions of dollars at stake.

4 Ninety-three percent of taxpayers report income when receiving funds from sources that report directly to the IRS, according to the report; just 37% report income when no records are sent independently to the tax collector. Nearly 8% of Americans in 2016 reported being paid digitally for work, according to the treasury inspector, with nearly 18% selling goods online that same new federal rules scheduled to take eff ect, the threshold for fi ling a 1099-K will drop from $1,000 to $600 next year in Illinois, where, until last year, the threshold was $20,000, same as with the IRS. Th e bite can depend on the workers in Illinois who once fl ew, or drove, below the tax collector s radar also are getting 1099-Ks for services rendered, Jasmon said, but things are simpler for Lyft and Uber drivers because their driving accounts automatically keep track of mileage and other costs that can be deducted from payments so that it s relatively easy to pay taxes only on profi t, as opposed to gross amounts.

5 It can get stickier for someone who sells stuff they ve owned for e best way, tax experts advise, is to keep receipts so that you can prove you didn t make money from a $100 widget that you sold for $50. What about the $20 tennis racket you bought in high school and sold for $10? Absent the original receipt, Jasmon says that you could be on the hook for taxes on $10, assuming you sold enough other stuff to trigger a 1099-K. O Saben says there is wiggle room, but only so much. A price in a catalogue may be suffi cient to convince tax collectors that you didn t make money by selling an exercise bike and so owe no taxes, he said. If you don t have anything to support it, it will have to be income, O Saben said. I could zero out (income), but what I can t do is ignore it. Th ose who sell things as a business as opposed to a closet-cleaning endeavor should keep records documenting all expenses, experts say. Another option, O Saben says, is to treat merchandise as a collectible, which carries a maximum 28% levy on gains from sales of such things as sports memorabilia.

6 Also, there are transactions involving no sales of goods or payment for work, such as money sent to kids at college via Venmo, with no taxes due despite 1099-Ks reporting money being paid to someone. Keep business transactions as far away as possible from personal payments , O Saben advises. Payment processors are developing business platforms distinct for payments made for nontaxable reasons, he says, but the industry is prone to act conservatively. Most companies are afraid of being fi ned for violating reporting requirements, O Saben said. Th e intention is good: Th ey re trying to capture the undercurrent of cash transactions. It s going to create a reporting nightmare, or complexity, at least in the short run.. Congress will approach it, at some point, when there s enough alarm. Bruce Rushton is a freelance writer. Contact him at makes a lot of sense what Zelensky said, even though commentators dismissed it as fog of war. He said the should remove Russia and its veto from the Security Council and, if that doesn t work, abolish the council.

7 The main thing is today, it s time to transform the system, the United Nations, he told the Security Council. He proposed a global conference in Kyiv to discuss reforms to the United Nations. Grand ideas born in San Francisco, 1945, resurrected in Kyiv, 1925. Fletcher Farrar, editor 4 | | April 7-13, 2022 NEWSIf you won t go to the doctor, the doctor may end up coming to Illinois University s School of Medicine is targeting underserved communities by bringing health screening teams to churches as well as community organizations that primarily serve Black and other minority communities. We re trying to establish a partnership. And most importantly, we re trying to establish trust with people because it goes way back in history, said Taiwo Akinsoji, MD, program coordinator of culturally responsive health initiatives at SIU e Health DEPOTS program aims to create a safe space for individuals to take charge of their health through improved health literacy and advocacy. Th e project is a collaboration between SIU School of Medicine and faith-based and community organizations such as the Springfi eld Urban League and local NAACP chapter.

8 Increasing access to health care in underserved areas is one of many ways that we address health inequities, said Marcus Johnson, president and CEO of the Springfi eld Urban League. COVID-19 has increased existing gaps in care. Th is partnership and community health care outreach strategy is designed to build a bridge that reduces it. Medical students accompanied by a physician visit various sites in the community and screen for high blood pressure, diabetes and other health conditions. Th ey also educate about nutrition, fi tness and other healthy lifestyle choices. Rev. Roy Newman, pastor of Fresh Visions Community Church, said the program has been well received by his congregation. He said for a variety of reasons, some members of his congregation are reluctant to go to a physician s offi ce. Some are afraid to go to a doctor s offi ce or see doctors for some reason. But they are willing to come to the church and get these screenings. I think it is important to meet people where they are comfortable and willing to come, he said.

9 SIU School of Medicine has committed to being an antiracist institution, and we consider our partnerships with the community to be fundamental, said Wendi Wills El-Amin, MD, associate dean of equity, diversity and inclusion at SIU. Th e new Health DEPOTS program allows us to build a greater level of trust and create more spaces for health education. We want people to fi nd us in the places they normally frequent and be able to get screened or monitored for hypertension, diabetes and obesity, she e medical school is providing equipment for the Health DEPOTS and training health ambassadors to properly use the equipment. Th e program launched in February and is currently partnering with 10 churches and two community organizations. Akinsoji said they hope to reach out to Springfi eld s Muslim community as well. We don t want to create a perception that we are only working with Christian groups, she said. She added, With increasing racial and ethnic diversity in our nation, it is important to use a culturally oriented approach to address the health needs of the community.

10 Physicians and medical students enjoy having more time to work with patients than they may in a clinical setting. We are having time to really sit down and talk with them and explain, we bring out anatomy models, El-Amin said. And it was really interesting. We took out all the parts and it was the fi rst time that people really are able to see what we had been talking about. It s kind of rare to be playing with human body models and see where the liver is.. People have symptoms, and now have a diff erent picture in their mind to better understand. She added they are taking advantage of people with various skills in the congregations to monitor patients after the initial screenings. Nurses and other medical personnel, who may be a part of a particular church, will continue to monitor blood pressures and blood sugar levels within their group. El-Amin said that often during hurried physician visits, patients are sometimes bewildered. Th e Health DEPOTS hopefully will allow for more complete explanations and better training on the signifi cance of tests.


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