Tim Geithner's failure to pay income taxes is exactly the kind of thing . Geithner failed to pay the proper taxes for 2001, 2002, 2003 and 2004. Though the IRS contacted him in 2006, saying he failed to pay up for 2003 and 2004, Geithner didn't pay up for 2001 and 2002. As the Chicago Sun Times reports, Geithner didn't pay up until Obama decided he wanted to vet him for Treasury Secretary. Call me suspicious, but I suspect that had Geithner not been vetted, those taxes would have remained unpaid.
We've subsequently found out that Geithner had an illegal immigrant employed in his home and that he cheated on his taxes by claiming payments for overnight camp visits counted as part of his child deduction. We also know that his accountant told him not to do that.
I tend to take the view that the burden isn't on the employer, but on the government to enforce its silly immigration laws, but Geithner must have known that he would be caught and yet the Obama administration is trying to sweep all of this under the rug. Expediency is never an excuse for deceit, especially when money is considered.
There's a media double standard here to be sure, which Chuck DeVore, CMC alum and candidate for U.S. Senate, is right to point out the blatant double standard that stopped Linda Chavez from being Labor Secretary in 2001. Ms. Chavez, you'll remember, took in an illegal immigrant who had been the victim of abuse and is now an American citizen. DeVore's lines about it pretty much sum up my view of the situation.
Chris Good of The Hill wrote an article about TurboTax, which Geithner claims to have used when he filled out his taxes. Mr. Good quoted James D. Taylor of Claremont Mckenna, who is a tax attorney and a CPA. It looks as if Professor Taylor is on to something. Could Geithner have perjured himself?So, Mr. Geithner, soon to be fifth in the line of succession to the President, right behind soon-to-be Secretary of State Hillary Clinton, gets a pass for not paying taxes and for employing an illegal immigrant while Linda Chavez, in line for Labor Secretary, gets destroyed for giving a woman in danger some humanitarian assistance.
God bless America: land of the free and the home of the double standard.
TurboTax is considered the gold standard of reliability among accountants, according to Professor James D. Taylor of Claremont McKenna College, a tax lawyer and certified public accountant (CPA).
“TurboTax can handle virtually everything,” Taylor told The Hill, adding that nearly everyone in the accounting world uses a computer program such as TurboTax to prepare taxes — including tax accountants handling clients’ taxes at big firms.
“I'm a tax lawyer and CPA, and I wouldn't think of trying to do this by hand without TurboTax or a program like that,” Taylor said.
TurboTax in particular is well-regarded, according to Taylor. The program is available online for $75; a simpler version can be downloaded for free.
Geithner failed to pay over $34,000 in Social Security and Medicare taxes resulting from his work at the International Monetary Fund (IMF). U.S. citizens working at the IMF pay taxes as if they were self-employed, and Geithner’s mistake is common among Americans working at the IMF.
Geithner’s tax discrepancies were not likely caused by the program, Taylor said. The program alerts users to mistakes in their tax forms multiple times and requires users to override its calculations if they disagree with them, Taylor noted.
“From what little I have seen of this [Geithner’s tax lapses],” Taylor said, “if he used TurboTax to prepare his tax returns for the four years in question, I am absolutely confident that TurboTax would have calculated the self-employment tax, assuming he had put in the information correctly.
“It is not TurboTax's mistake; it was the error of the taxpayer,” Taylor said.