Monday, January 26, 2009

Head of IRS refused to pay taxes?

Tim Geithner was approved by the Senate as the new U.S. Treasury secretary on Monday. HE DIDN’T PAY HIS OWN TAXES FOR YEARS AND NOW HE’S HEAD OF THE IRS?

At the Senate confirmation hearings, it was revealed through documentary evidence that Geithner had not paid $35,000 self-employment taxes for several years, even though he had acknowledged his obligation to do so, and had filed a request for, and received, a payment for half the taxes owed. The failure to pay self-employment taxes was noted during a 2006 audit by the Internal Revenue Service, in which Geithner was assessed additional taxes of $14,847 for the 2003 and 2004 tax years. Geithner failed to pay, or to admit his failure to pay, the self-employment taxes for the 2001 and 2002 tax years until after President-elect Obama expressed his intent to nominate Geithner to be Secretary of Treasury. He also deducted the cost of his children's sleep-away camp as a dependent care expense, when only day care is eligible for the deduction. Geithner subsequently paid the IRS the additional taxes owed, and was charged interest of $15,000, but was not fined for late payment.

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