Germantown Board Members Take Advantage of Tax Benefit

Nice way to game the system. 

Germantown - Elected officials here are taking advantage of an IRS rule that, in effect, allows them to be reimbursed for many of the miles they drive from their day jobs to Village Hall.

Village President Tom Kempinski, for example, logs 30-plus miles for trips from his job in Oak Creek to Village Hall whenever he stops there before he drives the three additional miles to his home.

It’s not what some folks had in mind when Village Board members created monthly expense stipends for themselves a year ago.

“I guess it could be legal,” said Larry Prodoehl, president of the Germantown Citizens Action Coalition, “but is it the real intent?”

The work-to-Village Hall miles don’t cost Germantown taxpayers any more money, because Village Board members get their stipends whether they show proof of expenses or not. Also, the stipends are a flat amount, no matter how much the board members incur in expenses each month.

But claiming miles for what nearly equates to driving home from work does put a little more money into the pockets of Village Board members.

1. They get the stipend whether or not they “mileage” expense it.

   The mileage expensing is perfectly legitimate--although it would be a lot smarter to track intra-village trips than ‘office-to-office.’

   No games here.

   Posted by dad29 on April 22, 2008 at 0657 hrs




2. mileage to and from your workplace it almost always not tax deductible!!

   Posted by on April 22, 2008 at 1706 hrs




3. IRS guru you aren’t.

   Mileage between two regular workplaces is always deductible.  So in this instance, the trip from home to Job A is non-deductible, as is the commute home from the Village Hall.  But mileage between Job A and the Village Hall can be deducted at the standard mileage rate.

   Posted by Recess Supervisor on April 22, 2008 at 1834 hrs




4. So essentially Germantown is annually paying $2,400 income tax free to all their supervisors if I read this correctly?

   What a scam on the taxpayers of Germantown.  The best part is that all of these yahoos would still serve on that board even without this gift.....

   This is the sort of thing that a competent door to door candidate could have a field day with.  And I hope would.

   Posted by on April 22, 2008 at 1906 hrs




5. $2,400 income tax free

   Not really tax-free.  It is a stipend for expenses (travel, phone, etc.).  If they can’t document to the IRS actual expenses incurred, it is taxable income, not $2,400 tax free. The alternative to a monthly stipend would be having these people submit for every actual expense (every mile, every phone call, photocopy, etc.).  So, if they have $1200 in expenses, the other $1200 is taxable as income.  The only way it is “tax-free” is if the recipient has spent something (which either way they are out of pocket - either incurred expense or income tax payable).

   Before anyone gets all huffy, this is not something unique to government or elected officials.  It is tax code that is applicable to anyone.  The only difference is this is in the “public eye”, whereas most private employers & employes would not have this subject to Open Records.

   Posted by on April 22, 2008 at 2018 hrs