Posted on 01/21/2009 6:30:53 PM PST by CJacobs
Consider the following from the sources:
http://abcnews.go.com/Business/Economy/story?id=6691508&page=1
Geithner said he used Turbo Tax to prepare his faulty returns but told the committee "these mistakes were my responsibilities, not the software I used."
Then this quote from this source:
http://townhall.com/blog/g/864948ff-db13-40cc-863a-4cce12813010
"He was paid in an unusual way by the IMF and his accountant gave him bad advice. When the IRS caught the error, Geithner did not apply that lesson to earlier years. He has now paid the money owed."
(Excerpt) Read more at abcnews.go.com ...
Its not so much he didn’t pay the taxes, but then he pocketed the check that was to reimburse him for it.
I got this. This should be the shortest thread in the history of FreeRepublic.com.
It's because being caught telling a lie is less harmful to him than the truth.
Maybe he wanted to save money and only paid the accounting to check his returns or for advice on unusual situations. The fact that he was employing an illegal housekeeper suggestions he’s a cheapskate when it’s his own money.
Didn’t he use TurboTax for a couple years, and then he switched to an accountant who never caught his error for the next few years?
This guy is dirty.
Because an honest accountant wouldn't want to sign off on that level of cheating?
This still does not add up. The portion of the quote that sticks out is:
“his accountant gave him bad advice”.
That implies that it was during the withholding and / or filing that the advise was given. This quote does not imply it was “after the fact”.
http://www.americanthinker.com/blog/2009/01/the_geithner_grossup_grossout.html
On a more serious note: The taxation of executives who worked for international organizations was my particular area of expertise for many years. As Byron York noted, the IMF not only increased Geithner's compensation to reimburse him for the employer's share of the payroll taxes, but that reimbursement was done on a "grossed up" basis. York also noted that the IMF spent a great deal of time reviewing filing requirements and explaining the gross up calculations. The distinction between such payments and one's base compensation is also clearly noted on all wage reports.
The tax thing raises much bigger questions about his ethics, particularly given that he'll be running the Treasury Dept.
I have written both of my senators regarding this appointment. I like what Sean Hannity said tonight. “I wonder if Biden regards Geithner as ‘patriotic.’” Ha! Ha!
Why would someone who not only has a high income, but a very complex tax situation, use a pre-packaged computer program to calculate their taxes?
It doesn’t even make sense.
He’s a democrat, therefore, he did nothing wrong.
On to prosecuting Bush and Cheney.
It was my experience that executives who receive reimbursements on a grossed up basis are keenly interested if the amount they have received will indeed make them whole. This usually involves computing a hypothetical tax return, one in which no such payment is received. An explanation may be in order. The money received from the IMF to cover the employer's share of the FICA tax is subject to both federal and state income tax as well as self employment tax.
This means that the employment tax normally due on a base salary of say $150,000 by a US employer can easily become almost double that amount in a high income tax jurisdiction such as New York state and city when paid in the manner used by the IMF.
Because a comprehensive gross up calculation often requires the employee to disclose outside sources of income and deductions in at least general term, they tend to induce some stress and discomfort.
Knowledge of an employee's outside income- or lack thereof- can shift relationships in the workplace. All in all, receiving payments on a grossed up basis are not something that just slips one's mind when preparing an income tax return.
/johnny
I previously wondered about Geitner's accountant. Either Geitner fraudulently concealed income from the accountant or the accountant is a co-conspriator, IMHO. And even if Geitner did conceal income, the accountant wasn't asking the right questions.
ML/NJ
If he cared, he'd have verified that his foreign employee was legally. You know, like checking her documents and noting a work-permit expiration date?
It just costs more to employ a citizen, that's the key.
This sounds like a typical case of “You’re going to charge me HOW MUCH!!”
The flip side is that I make a pretty decent living getting TurboTax users out of trouble with the IRS...Geithner would need have his retainer up front.
Isn't that what put Libby in Jail?
You know, any other position, frankly to me this wouldn’t be that big of deal, but we’re talking about the FREAKING TREASURY SECRETARY HERE!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.