Comments on: Geithner Says “I’m Sorry”

By: Rick

Rick — Fri, 23 Jan 2009 14:51:05 +0000

I’m sorry I can’t fault the guy, I do taxes for a lot of smart people, and I am really amazed when some of them tell me their occupation is… accountant. Just because you are a good CPA, or financial planner, doesn’t mean you know or understand the tax laws. My understanding is that for the years he was audited he used a CPA firm to complete his return and they gave him an opinion that just paying the employee’s share was correct. The other two years I understand he used a well known tax software that it seems best here not to name. I can tell you when a client new to me comes in and tells me that they used this particular software I always ask they bring in their previous three returns so I can check them for errors, it is more common to find errors in them then not.

In 2006 when Geithner was audited the statues had run on 2002 and 2001 returns and the IRS did not feel fraud had occurred so they could no longer collect the SE tax that was not paid. But Geithner paid these (yes just lately) when he had no legal requirement to do so, but some of these senators were still trying to take him to task on this issue. I had client last year who was unable to collect a $9,000 refund due to the same situation of it was just plain too late if Geithner should have paid his old SE tax in 2006 even though he was not required to do so then I think my client should be given the same deal and get to collect their $9,000.

I am partly with Skip did he do agood job at the Fed Bank in NY, and was he too loose with the big banks.

By: garagefather

garagefather — Fri, 23 Jan 2009 14:46:39 +0000

Change we can believe in!

By: Skip McQuaid

Skip McQuaid — Fri, 23 Jan 2009 13:47:33 +0000

Only part of the problem – The guy was head of the Fed in New York – supposed to be looking over banks – loosened restrictions on Citibank so much that they even stopped reporting their activities to the Fed – and where is Citibank today? This guy approved looser oversight that cost taxpayers millions….I prepared tax returns for a World Bank employee for several years – until he retired – he had the same deal – The paperwork involved was not confusing or hard to understand – my client even understood it and we just worked to get the 1099 income down to a comfortable level.

On to another subject – stimulus payments and bailouts – Folks, what do you think got us to where we are at? Folks spending money they did not have and promising to pay debt they could not pay – and what is the government doing to solve the problem? Spending money they (we) do not have and promising to pay debt they (we) cannot pay. Somebody please slap me – maybe then I will wake up and understand what the hell is going on.

Skip

By: Silent Cal

Silent Cal — Fri, 23 Jan 2009 04:01:50 +0000

Not reporting income earned is an obvious fraud, even if there’s no withholding. I mean, it’s §61 income on its face. What part of “all income from any source derived” didn’t he understand? Also, the child-care deductions for summer camp? That’s something most ordinary folks wouldn’t have the guts to try, and any decent accountant would refuse to consider. I understand not the problems Clinton’s nominees in ’92 had with not reporting their household employees’ income, but this is beyond that by a long shot. For the man who would be at the head of the tax collection apparatus of the United States, any level of tax fraud is unacceptable.

By: Kelly

Kelly — Fri, 23 Jan 2009 02:07:38 +0000

He didn’t pay SE tax. There’s a post about it here.

I’m not defending his actions because I think this is a pretty serious issue – but I don’t think that his confirmation in committee was partisan. He’s being backed by some big Republicans as well. I think the bigger issue is that the economy is in the toilet and we need a Treasury Secretary. Rather than say that he would be out if he were a Republican, I think a better characterization is that if the economy were in a better place, he’d be out in a second. Sad commentary, I know.

By: Christina Reinert

Christina Reinert — Fri, 23 Jan 2009 01:39:04 +0000

I don’t think he is the right man for the job. I don’t know exactly what the error on his tax return was. I am a CPA myself, and there really is a big difference between and error and not claiming all your income on your tax return. Does anyone know what he didn’t do on his tax return? If it was just an error, why did they even bring it up. If it wasn’t some kind of mathematical error or a misinterpretation of a very complex tax code issue, then he shouldn’t be Treasury Secretary. If you work for the IRS and even make one mistake on your tax return, you will be fired, and he is going to be the head of the IRS. Finally, if he were a Republican, he would already be out of the picture. There is a double standard also.