IRS dings park district for years-old tax filing

The Wilmette Park District could face a penalty from the Internal Revenue Service for an alleged misstep in its tax filings nearly a decade ago.

Chris Lindgren, the district’s newly minted executive director, announced Monday, Aug. 11, during the Park Board’s monthly meeting that the district recently received notice from the IRS regarding the park’s tax year 2016 filing.

The IRS, according to Lindgren, is contending that the park district did not “timely file” its 1095 statement indicating employer health coverage.

Park district staff are working to resolve the allegation and the district will also be engaging with tax and legal attorneys for assistance, Lindgren told park board commissioners during the meeting.

Officials found out about the IRS’s grievance in late July, per Lindgren, who also said that the district still doesn’t “truly understand the breadth of the situation.”

“There’s not a lot to give you right now but we just wanted to let you know this is something that is in front of us,” Lindgren noted.

According to Lindgren, the park district has “no recollection” of anyone previously filing a complaint or reaching out to the district regarding the missing form. This, he said, leads the district “to believe that it was done as it’s been done every single year since.”

Sheila Foy, the district’s superintendent of finance, has already completed “tons of documentation” to show that the allegation is not a lack of follow-up on the district’s side, Lindgren told the board.

Since receiving the notice from the IRS, the district reportedly has struggled to receive clear direction from the government agency regarding its contention.

“We’ve been working really hard to get some answers out of them and we’re just at a point where we really need to engage with a tax attorney to help push this,” Lindgren said.

While officials did not mention specific penalties the district could face as a result, a memo from Lindgren to commissioners says the board will be kept informed to efforts to resolve the matter and “any penalties, if applicable.”

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