Sen. Chuck Grassley (R-IA), the Watchdog's Watchdog, has, along with the chair of the Senate Finance Committee, Max Baucus (D-MT), released some pretty disturbing documents regarding the repeated failure to pay required taxes by Tim Geithner, the Obama pick to head up Treasury. Yep, that would be the Treasury Department--the parent agency of the IRS.
The underpayments are mostly related to Geithner's time at the International Monetary Fund. All U.S. citizens who work for the I.M.F. are required to file self-employment payroll taxes, since the I.M.F., as an international organization, does not withhold these taxes for Social Security and Medicare. After a 2006 IRS audit found that the payroll taxes were missing on his 2003 and 2004 returns, Geithner paid additional taxes and interest of $16,732 (the IRS declined to impose any penalties). Geithner then voluntarily amended his tax returns for 2001 and 2002 for an additional $25,970, but only after the Obama transition team discovered the same lapse in his payroll taxes (check out Geithner's tax records to learn more).
The documents also reveal that Geithner failed to ascertain whether or not his housekeeper was legally allowed to work in the the U.S. Do we really have yet another nominee with a nanny problem? When will these people learn??? Geithner's scheduled confirmation hearing has now been postponed.
-- Beverley Lumpkin