Yet another poor choice of associations by Obama.
President-elect Barack Obama’s choice to run the Treasury Department and lead the nation’s economic rescue disclosed publicly Tuesday that he failed to pay $34,000 in taxes from 2001 to 2004, a last-minute complication that Senate Democrats tried to brush aside as a minor bump on an otherwise smooth path to confirmation.
Timothy Geithner paid most of the past-due taxes days before Obama announced his choice in November, according to materials released by the Senate Finance Committee. He had paid the remainder of the taxes in 2006, after the IRS sent him a bill.
The still-unpaid taxes were discovered by Obama’s transition team while investigating Geithner’s background. Obama’s staff told senators about the tax issues Dec. 5.
You know if this had been a Bush appointee or even Clinton’s, this would cause an uproar. But because it is Obama’s, then it is ok. How pathetic.
You’re missing a good point. Accepting that he didn’t know the rules, doesn’t that make the case for a complete overhaul of the draconian IRS regs? Also, would any regular (read:peon) citizen not have to pay penalties?
If Charlie Rangel can fail to pay taxes and still keep his chairmanship of the committee that writes the tax laws, then Geithner is a shoo-in.
The idea that somehow this was an honest mistake is a bunch of crap. But I watched NBC news last night try to whitewash it (nothing to see hear folks proclaimed Kelly O’Donnell and Brian Williams). I’ve read different reports claiming he knew about the 2003-04 problems but didn’t pay the taxes. Then after paying them in the audit, he failed to point out he apparently had the same problem for the years prior (where Obama’s advisors figured he owed the same tax for those years but didn’t pay them)
We’ve had enough of the questionable financial characters in these positions during the Bush years. There has to be a Jimmy Stewart financial guy here in the Midwest running a clean bank or clean Fed governor outside of New York/Wall Street that could have been appointed to this job.
you mean he didnt pay his fair shair.
Perhaps he doesn’t share Obama’s vision of spreading the wealth. Works for me!
I thought this was the presidency of “Change!” We don’t want the same old Washington, right? Did that disappear immediately after his victory speech?
Whatever happened to Obama’s super duper uber application form that was supposed to screen out “problem” people before they got on staff?
Up next for Geithner…..“How to balance your checkbook 101”.
Of course, this hack will be confirmed despite the fact that he’s a low-life, low-level crook.
I “Hope” he has enough spare “Change” laying around to pay this! Maybe he could get ahold of Blago for some financing tips.
You mean Geithner wasn’t properly vetted by the Bush Administration? I find that hard to believe.
Accepting that he didn’t know the rules
What happened to “Ignorance of the law is no excuse”? I’ll guarantee if I were to “miss” paying $34,000 of taxes, the fact that I “didn’t know” I needed to pay them will hold much water with the IRS.
Marvin, that’s why he paid penalties.
He paid interest, which is different than penalties (the IRS can make the penalties 100% if they wanted to, but waived them in this case):
From WebCPA (http://www.webcpa.com/article.cfm?articleid=30433)(emphasis mine):
The IRS audited Geithner in 2006 for tax years 2003 and 2004, resulting in additional taxes of $12,719 and $2,128, respectively, plus interest of $1,885. The IRS waived penalties for these tax years. Geithner voluntarily amended his tax returns for years 2001 and 2002 after Obama expressed his intent to nominate Geithner to be Treasury Secretary and paid additional taxes of $2,364 and $16,812, respectively, plus interest of $6,794.
didnt joe the plumber get crucified by the press
for not paying taxes in a state he used to live in or something like that
now the media blows this off like no big deal
The mainstream media and the Senate are downplaying it because they know they’ll have a hard time finding anyone halfway competent who is also willing to wade into the hornets’ nest that is the Treasury Department right now. They’re terrified at the prospect of having no one in charge there once Bush (and Paulson) step down next week. It’s not because Obama’s a Democrat; Bill Richardson didn’t get a free pass, because the Commerce job is an easier one to fill.
As a tax cpa, I can tell you that the IMF provided the necessary information to pay his self-employment tax Oh, did I forget to tell you they “grossed-up” the payment for the income taxes on it. This guy is a tax cheat, PERIOD. If you want to argue he didn’t understand…then he CERTAINLY isn’t bright enough to be Secretary of the Treasury. I can’t wait to use “innocent mistake”...no penalties, next time when of my clients has a “misunderstanding” with the IRS. Penalties waived by the IRS….are you serious?