Geithner's IRS troubles rankle average taxpayers
Tom Hamburger and Ralph Vartabedian, Tribune Washington Bureau
Issue date: 4/15/09 Section: News
"Politically powerful people are less likely to get bothered by the IRS," Schriebman said. "It is more than a question of fairness. Not only is the IRS looking away from confronting influential people, the IRS is getting a lot tougher and nastier toward the little guy."
Larry Gibbs, IRS commissioner during the Reagan administration and now a tax attorney at Miller & Chevalier, said a small minority of taxpayers might see the tax issues of current nominees as a rationale to cheat.
"Some people are looking for an excuse," Gibbs said, "Some people might make the jump to rationalize that because these others are doing it they can do it too. That's where the risk is."
Geithner told a Senate hearing in February that his failure to pay $34,000 in Medicare and Social Security taxes between 2001 and 2004 was an oversight, an embarrassing mistake.
Kelley pointed out in an interview Tuesday that a similar "mistake" by one of Geithner's subordinates at the IRS would likely result in swift termination, with no right of appeal.
In some cases, IRS employees have lost their jobs for simply filing a late return or failing to report a few hundred dollars of interest income. In an interview Tuesday, Kelley said the Geithner's case underlines the need for a change of the rules governing IRS employees.
"My issue is not that I want Geithner or anyone else punished," Kelley said. "I want there to be a re-examination of the law that holds IRS employees to a separate standard-one in which a simple mistake can cost them their jobs with no right of appeal," she said.
IRS compliance employees have reported recently that taxpayers are occasionally citing the Geithner case when they are asked to pay their tax bills. "It's making the compliance conversation harder," she said.
Royce Esters, a tax preparer in Compton, Calif., said this week that people in his low-income community have serious doubts about Geithner.
"They are saying that if he can't figure out his taxes ... how can he be in charge of the Internal Revenue Service?" Esters said. "He owed $34,000 and he is running the Treasury? That's ridiculous."
Larry Gibbs, IRS commissioner during the Reagan administration and now a tax attorney at Miller & Chevalier, said a small minority of taxpayers might see the tax issues of current nominees as a rationale to cheat.
"Some people are looking for an excuse," Gibbs said, "Some people might make the jump to rationalize that because these others are doing it they can do it too. That's where the risk is."
Geithner told a Senate hearing in February that his failure to pay $34,000 in Medicare and Social Security taxes between 2001 and 2004 was an oversight, an embarrassing mistake.
Kelley pointed out in an interview Tuesday that a similar "mistake" by one of Geithner's subordinates at the IRS would likely result in swift termination, with no right of appeal.
In some cases, IRS employees have lost their jobs for simply filing a late return or failing to report a few hundred dollars of interest income. In an interview Tuesday, Kelley said the Geithner's case underlines the need for a change of the rules governing IRS employees.
"My issue is not that I want Geithner or anyone else punished," Kelley said. "I want there to be a re-examination of the law that holds IRS employees to a separate standard-one in which a simple mistake can cost them their jobs with no right of appeal," she said.
IRS compliance employees have reported recently that taxpayers are occasionally citing the Geithner case when they are asked to pay their tax bills. "It's making the compliance conversation harder," she said.
Royce Esters, a tax preparer in Compton, Calif., said this week that people in his low-income community have serious doubts about Geithner.
"They are saying that if he can't figure out his taxes ... how can he be in charge of the Internal Revenue Service?" Esters said. "He owed $34,000 and he is running the Treasury? That's ridiculous."
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