Geithner Was Reimbursed By Government For Taxes He Forgot To Pay

He did remember to cash his reimbursement checks, though.

So that's something. I'm a glass-half-full kind of guy.

IMF employees were expected to pay their taxes out of their own money. But the IMF then gave them an extra allowance, known as a “gross-up,” to cover those tax payments. This was done in the Annual Tax Allowance Request, in which the employee filled out some basic information — marital status, dependent children, etc. — and the IMF then estimated the amount of taxes the employee would owe and gave the employee a corresponding allowance.
At the end of the tax allowance form were the words, “I hereby certify that all the information contained herein is true to the best of my knowledge and belief and that I will pay the taxes for which I have received tax allowance payments from the Fund.” Geithner signed the form. He accepted the allowance payment. He didn’t pay the tax. For several years in a row.
According to an analysis released by the Senate Finance Committee, Geithner “wrote contemporaneous checks to the IRS and the State of Maryland for estimated [income] tax payments” that jibed exactly with his IMF statements. But he didn’t write checks for the self-employment tax allowance.

Even the NYT pretends to be bothered:

Today, in a time of economic peril, the nation cannot afford a Treasury secretary with a tainted ability to command respect and instill confidence.

Republicans meanwhile are intent on confirming him, labeling him the best possible (i.e., least socialist) Treasury Secretary the Obama Administration could nominate.

I doubt that. Try again.

Posted by: Ace at 12:08 PM

Comments

(Jump to bottom of comments)

1 But this is just an honest mistake. Pravda has repeatedly told us this.

Posted by: TheQuietMan at January 15, 2009 12:12 PM (1Jaio)

2 Fuck every motherfucking aspect of this government. I'm gonna go join the Amish. They don't have to pay taxes, do they?

Posted by: Big Fat Meanie at January 15, 2009 12:14 PM (n2eCn)

3 I doubt that. Try again.

Sadly, I -don't- doubt that. In fact, I wouldn't be surprised if this is a fake-out... nominate somebody indefensible, let everyone expend their energy objecting to -that- person, then finally "give in" and nominate the person you really wanted. You know. Like Bush with Harriet Miers. And it worked too.

Expect Obama to "give in" and replace this person, and then nominate someone with a clean tax record who is just to the left of Gramsci. If anyone complains then, the cry will go up: "Sheesh, nothing can make these stupid conservatives happy, can it?"

Qwinn

Posted by: Qwinn at January 15, 2009 12:15 PM (/y1J0)

4 Today, in a time of economic peril, the nation cannot afford a Treasury
secretary with a tainted ability to command respect and instill
confidence.

Yet, they supported Obama as Commander-in-Chief. Huh.

Posted by: wiserbud at January 15, 2009 12:15 PM (IHbof)

5 let everyone expend their energy objecting to -that- person, then finally "give in" and nominate the person you really wanted

Jamie Gorelick is available

Posted by: toby928 at January 15, 2009 12:16 PM (PD1tk)

6 Guy must be Wile E. Geithner, Super Genius.

Posted by: CoolCzech at January 15, 2009 12:18 PM (WcPBj)

7 Wait wait wait. If one's employer pays your taxes, then doesn't that do nothing more than raise the amount of income upon which you owe taxes?

Posted by: ArrMatey at January 15, 2009 12:19 PM (35LYA)

8 Sometimes you fight because it's the right thing to do. Republican voters understand that. A Republican party that doesn't goes extinct. Deservedly so.

Posted by: The Obvious at January 15, 2009 12:19 PM (1g+FW)

9 I don't think I'm alone in pining for a Republican party ( and press) that will fight when it is right to fight. My guess is Scoooter Libby wishes the same thing. Maybe a Haditha Marine or two as well.

Posted by: The Obvious at January 15, 2009 12:25 PM (1g+FW)

10 7. Well, by the amount paid for you times the applicable tax rate. That's why employers usually just raise salaries by enough so the employee comes out even, when they worry about taxes - usually for overseas assignments.

Posted by: CoolCzech at January 15, 2009 12:29 PM (WcPBj)

11 OT
Ace, do you have an in w. Drudge? If so, can you please beg him to take down the picture of Waxman on his front page, I'm eating my lunch.
What the F is up w. that dude's grill?

Posted by: mjhlaw at January 15, 2009 12:31 PM (0udxW)

12 We will have a tax cheat as Treasury Secretary. I think we should just get used to it. There may not be any Democrats who pay the IRS what they owe according to the law.

Posted by: zmdavid at January 15, 2009 12:35 PM (hOmuK)

13 ArrMatey,
Good call, you're correct that payment by an employer to pay taxes is taxable income itself, I can't recall the case name, but it's basic tax law.
I have no experience working for foreign organizations, but I would bet to compensate, it's likely the "gross up" amount, required must be proportionately greater than the actual amount of tax itself, so that the (Gross-Up -IncomeTax*Grossup) ultimately received by the employee is sufficient to bring their salary into parity with their foreign employee counterparts. So...increase Geithner's reported tax non-payment appropriately to get an idea for just how much unreported income he had.

Posted by: mjhlaw at January 15, 2009 12:36 PM (0udxW)

14 Ace, do you have an in w. Drudge? If so, can you please beg him to take down the picture of Waxman on his front page, I'm eating my lunch.
What the F is up w. that dude's grill?

I thought it was some alien creature that you see on the Weekly World News.

Posted by: TheQuietMan at January 15, 2009 12:36 PM (1Jaio)

15 For about the thousandth time...Wave bye-bye to the GOP, it's a dead-party walkin'!

Posted by: J David at January 15, 2009 12:39 PM (qnzEP)

16 If one's employer pays your taxes, then doesn't that do nothing more than raise the amount of income upon which you owe taxes?
You mean...another 26K of Unreported Income??? Yes Super Genius, indeed.

Posted by: Paladin at January 15, 2009 12:39 PM (bWB5j)

17 For about the thousandth time...Wave bye-bye to the GOP, it's a dead party walkin'!

Posted by: J David at January 15, 2009 12:47 PM (qnzEP)

18 For about the thousandth time...Wave bye-bye to the GOP, it's a dead party walkin'!
Twice in one thread for good measure?

*eats*

Posted by: Grue in the Attic at January 15, 2009 12:54 PM (k58xs)

19 Heya Grue--nice to see ya. Where you been?

Posted by: irongrampa at January 15, 2009 12:58 PM (ud5dN)

20 Where you been?
Holas Gramps! We've been Conspiring. Click the name link, might see something you recognize.
*eats*

Posted by: Grue in the Attic at January 15, 2009 01:04 PM (k58xs)

21 Maybe Charlie Rangel can loan him a couple bucks to pay the taxes.

Grue's right about the GOP. scroom. Maybe Palin and Jindal can re-start the Whigs

Posted by: i cleared out some space for my unicorn; mtcmtauth= at January 15, 2009 01:06 PM (O2AVM)

22 I'm no lawyer but aren't there laws to make it illegal to 'forget' to pay taxes? I know they sure get upset at me if I don't.

Posted by: Eric at January 15, 2009 01:07 PM (MFvqO)

23 Actually this is probably the most honest man BHO knows. RememberBHO came from the Chicago mob and they're not known for honesty.

Posted by: Scrapiron at January 15, 2009 01:09 PM (8nB5X)

24 I'm no lawyer but aren't there laws to make it illegal to 'forget' to pay taxes?
Silly civilian. Laws mean nothing to Lib politicians... heck to most politicians in general. Libs just tend to get away with it more often.This has been obvious for years.
*eats*

Posted by: Grue in the Attic at January 15, 2009 01:10 PM (k58xs)

25 I have a friend who's, well... not that smart. Somewhat below average IQ, a screwup in most aspects of his life, but a nice guy who does a good job at work.

He manages to get his taxes done. A lot of those taxes involve self-employment. He pays them. He got audited by the IRS once and they complimented him on getting his self-employment payments right.

Yet this Really Smart Geithner fellow managed to screw things up. For years.

Posted by: cirby at January 15, 2009 01:17 PM (nYcsk)

26 Son of a bitch...the IRS harassed and threatened me and MrPaul over $25.98. I shit you not, interest on interest and this assbag gets away with this shit?! I am so pissed.

Al Franken eats paste.

Posted by: MrsPaulsFishSticks at January 15, 2009 01:32 PM (iYbLN)

27 nothing to see here, move along... anyone can "forget" to pay their taxes, especially if someone else sends them the money to pay them, he was busy, the sun was in his eyes,he threw his back out, his pen ran out of ink, i can think of a thousand and one legitimate excuses for Very Important People not to pay their taxes, and this in NO way disqualifies them as a canidate for Dog Catcher...

Posted by: shoey at January 15, 2009 01:34 PM (IRh55)

28 Maybe I should buy a cash business.

How's the car wash business?

Posted by: Warden at January 15, 2009 01:36 PM (KXbGD)

29 Technically, the IMF isn't part of the government (though we pay most of their budget, I suspect).

Posted by: Ralph L at January 15, 2009 01:38 PM (1Rvfx)

30 I say confirm him. This is exactly the type of leadership we need.

Posted by: Typical fucking tax cheat at January 15, 2009 01:40 PM (3Bqev)

31 As outrageous as this is, we should not be surprised. I think that it is analogous to the chick that is selling her "virginity".
Obongo convinced a majority of the electorate that he was the only "virgin" to come out of the Chicago whorehouse. What he got is worth a lot more than what that virginal whore in California is going to get.
Naturally, Obongo has no problem with the slippery types. That is all he has ever known. If anyone thinks that he's any different, I pity them.
P.S. I pity us too.

Posted by: noprisoners at January 15, 2009 01:46 PM (ED95h)

32 Why the fuck don't I get reimbursed for my taxes. I actually paid them.

Posted by: Lemmiwinks at January 15, 2009 01:57 PM (E6GUg)

33 So he was reimbursed for the taxes he paid. Someone above mentioned
the endless cycle reimbursement/taxable income/reimbursement/taxable
income, etc.

Kinda' like buttered toast on the back of a cat. Does the cat land on its feet or does the toast land butter side down?

Posted by: sm at January 15, 2009 02:08 PM (gUKfo)

34 So he was reimbursed for the taxes he paid. Someone above mentioned the endless cycle reimbursement/taxable income/reimbursement/taxable income, etc.Kinda' like buttered toast on the back of a cat. Does the cat land on its feet or does the toast land butter side down?
Perpetual motion engine!!
Now if only we had a way to harvest the power...
*eats*

Posted by: Grue in the Attic at January 15, 2009 02:20 PM (k58xs)

35 That would be like putting ME in charge of prisons and/or "undocumented Pharmicists". Well I at least paid the taxes on the "honest" part of my income.

Posted by: hutch1200 at January 15, 2009 02:22 PM (07u+3)

36 Hutch for Dept. of Corrections...he was never really convicted (recently).

Posted by: hutch1200 at January 15, 2009 02:24 PM (07u+3)

37 He sounds like a real fucktard. I didn't think it could get worse than Paulson Company. Looks like I might have been wrong.

Posted by: ol-dirty-/b/tard at January 15, 2009 02:27 PM (IoUF1)

38 I didn't think it could get worse than Paulson Company. Looks like I might have been wrong.
The instant we believe we've managed to make something idiot-proof, the world creates a better idiot.
*eats*

Posted by: Grue in the Attic at January 15, 2009 02:36 PM (k58xs)

39 ...I ran out of gas. I had a flat tire. I didn't have enough money for cab fare. My tux didn't come back from the cleaners. An old friend came in from out of town. Someone stole my car. There was an earthquake. A terrible flood. Locusts. IT WASN'T MY FAULT, I SWEAR TO GOD.

Posted by: Bridget at January 15, 2009 02:59 PM (9BrAV)

40 Honest mistakes only happen to democrats, whereas, criminal behavior always happens to republicans, according to the scumsuckers and bone lickers in the liberal media.

Posted by: Fish at January 15, 2009 03:15 PM (CG+cG)

41 Has anyone checked Geithner's freezer?

Posted by: markytom at January 15, 2009 03:23 PM (ZG9as)

42 Geithner is a poor choice, and his failure to pay his taxes proves it. If he doesn't believe that he needs to pay his fair share of our tax load, what type of example does this set for those of us who do?
Back in 1993, Zoe Baird and Kimba Wood, both nominated to be U. S. Attorney General by then President Bill Clinton, withdrew from consideration after revelations that they had hired illegal aliens.

His story is about as credible as OJ Simpson saying he was just driving down the highway in a white Ford Bronco. The Geithner record shows that after a 2006 Internal Revenue Service audit identified the lapse on his 2003 and 2004 tax returns, Mr. Geithner paid tax and interest of $17,230 and the IRS. waived penalties, according to the transition.
But Obama vetters discovered the same lapse for 2001 and 2002, and brought it to Mr. Geithner's attention November 21, 2008, after which he paid tax and interest of $25,970.
That leaves for Mr. Geithner the question of why he did not correct the earlier years' non-payment of self-employment taxes after the 2006 IRS audit identified the problem for 2003 and 2004.
Despite the claims of the Obama transition office, the IRS's website seems relatively clear on what IMF employees are supposed to pay.
U.S. citizens working in the U.S. must report self-employment income under the Self-Employment Contributions Act (SECA).

Posted by: sickinmass at January 15, 2009 03:39 PM (/i4dU)

43 IMF employees were expected to pay their taxes out of their own money.

As opposed to us regular folk, who pay our taxes with somebody else's money?

Posted by: s at January 15, 2009 03:47 PM (N/AfJ)

44 Earlier today when speaking to Shep Smith on FOXNews, Judge Andrew Napolitano defended Geithner's behavior as an honest mistake, one made by millions (I think it was) of taxpayers every year, nevermind Geithner's was a series of dishonest mistakes knowingly exercised), and concluded with this approximate quote:

"Geithner should be appointed because he made this mistake since he is someone who knows what it's like to deal with the IRS after making one."

That's right. Geithner is the most qualified to lead the Treasury because of his personal fuckupedness, nevermind again Geithner's inconsequential accomplishments prior to teaming with Paulson and the actual boondoggle that has become of his signature accomplishment with Paulson.

I'm sure Napolitano will soon be advocating Charles Manson as Attorney General because Manson screwed up and due to that and his extended incarceration and legal battles that Manson is supremely qualified to administer justice and law.

FOXNews. The conservative channel.

It's bizarro world. I don't even want my skittle-shitting unicorn anymore, I'm so ticked. At least I have AoSH and SDA (*ahem*).

Posted by: AnonymousDrivel at January 15, 2009 04:11 PM (sI5Ho)

45 I think I heard Rush say today he also would claim childcare expenses when he sent his kids to camp.

Perhaps this is legitimate, and if so, I am going to start collecting brochures for the summer camps for my sons to attend.

Posted by: GW Mclintock at January 15, 2009 04:31 PM (OaUQL)

46 If Stewart Smalley can be a Senator and Ahnuld can be a governor, why not Donald Trump for Treasury secretary, or Suze Orman

Posted by: kbdabear at January 15, 2009 04:33 PM (miw86)

47 43: In a snack mood?

Posted by: Jeff Dahmer at January 15, 2009 06:08 PM (iafWn)

48 the corruption of the dems is breathtaking.
The MSM is responsible for the current state of the country and abroad.
Lawyers and judges and rats could not do what they do without cover from the light of truth.

Posted by: bob hussein dole at January 15, 2009 06:14 PM (yl9yA)

49 As a Tax CPA, I can tell you this guy is a tax cheat PERIOD. And if it was an "innocent mistake", he is not bright enough to be Secretary of the Treasury. I can't wait to go to the IRS for my clients and tell them it was an "innocent mistake" for my clients. No penalty right? It works for your boss.

Posted by: spook at January 15, 2009 06:39 PM (KETCq)

50 This just in, admit there is certain menial work that can go unreported. It's not like the maid is going to be paying tax anyway. It's stupid to have laws on the books that are unenforceable but then, hello, since when did any asshole lawyer consider practicality.

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