By David Schoetz

Jan 14, 2009 12:03am

Closing Arguments: Geithner’s Tax Problem?

Timothy Geithner, President-elect Barack Obama’s designee for Treasury Secretary, improperly filed his federal taxes when he was a senior official at the International Monetary Fund. An Obama aide called it a "honest mistake" by Geithner, who soon faces his Senate confirmation hearing. Tonight, we ask you: Should a man who failed to pay some of his own taxes be disqualified from a job that includes overseeing our tax code? Tell us what you think.

User Comments

Yes, he should be disqualified.

Posted by: kngwd89 | January 14, 2009, 12:15 am 12:15 am

He cannot be trusted with taxpayers money.

Posted by: Ibby | January 14, 2009, 12:16 am 12:16 am

The IRS takes my assets or sends me to jail if I don’t pay my income taxes. He fails the test for an appointment and president elect loses integrity.

Posted by: august biggs | January 14, 2009, 12:18 am 12:18 am

Yes, he should be disqualified. He is to be the final word on taxs.

Posted by: Ken M | January 14, 2009, 12:21 am 12:21 am

If change is to be change we can believe in, we need a person who has historically been someone who is honest regarding his own money and taxes. There is no way he should be trusted with our billions. Income tax mistakes and no payment of 34k over three years is not a one time mistake…

Posted by: Susan | January 14, 2009, 12:22 am 12:22 am

I think that he should be disqualilfied. I thought the Dems. promised the cleanest administration in history. It surely doesn’t appear that way. Such phonies and hypocrits.

Posted by: CARL WARREN | January 14, 2009, 12:22 am 12:22 am

Absolutely, he should be disqualified. What is this “honest mistake”? He ought to know that he has to pay taxes on his income.

Posted by: mbr544 | January 14, 2009, 12:23 am 12:23 am

He should be disqualified!

Posted by: Parka Willis | January 14, 2009, 12:26 am 12:26 am

It would be like having the fox watch the chickens. If not paying his taxes is an honest mistake,,,what other kind of “honest mistakes” has he,,or could he make?
We need well qualified professionals in office, not “friends”. The leaders of all the companies that asked for bailouts,,they full well knew what was going on, we dont need that in our govt too. It’s time for change,,yes,, to honesty, and sensible spending. No more pork barrel,, waste,,more check and balance,,
Thanx,,a retired tax payer, tired of my tax $$$ being wasted,,,,, JW

Posted by: john | January 14, 2009, 12:27 am 12:27 am

He is not qualified. You can not make a mistake for 4 years. He knew what he was doing. Now he wants things to be,”Do as I say do and Not as I do”.
This change we already have.

Posted by: larry pearson | January 14, 2009, 12:27 am 12:27 am

Would you make an excuse for me if I don’t pay my taxes for years? Forgot??

Posted by: august biggs | January 14, 2009, 12:32 am 12:32 am

Is this really a question? To Anyone? I can hardly believe that Obama has the audacity…a word he’s fond of…to suggest him knowing this and he had to know! I am disgusted.

Posted by: Grace L. | January 14, 2009, 12:37 am 12:37 am

Wow, if I didn’t pay my taxes I’d lose everything and be in jail and you want to put him in charge of the Treasury???? I guess the IRS never sent him a notice of taxes due or he ignored them? You must be kidding!

Posted by: Gary Tirpak | January 14, 2009, 12:45 am 12:45 am

They should DQ him. If they would dig they would find out the same stuff about Obama, but they won’t let won’t let that come to light.

Posted by: Kris | January 14, 2009, 12:46 am 12:46 am

“Honest mistake” my foot! He was a SENIOR official in the International Money Market! He needed H&R Block to file his taxes? Give me a break. He is going to get it, unfortunately, but he shouldn’t. The highest post in the land to watch for our money must be transparent and efficient. No “oops!”

Posted by: Pilar | January 14, 2009, 12:53 am 12:53 am

No way should this man be entrusted with any money, much less running and setting policy for the United States Treasury. Just like Wall Street and Corporate America. Whatever happened to scruples and integrity? Even Obama doesn’t see any problem with this! Perhaps Obama should resurrect Diogenes to help him select appropriate candidates… Oh, I’m sorry. I guess all that “change” rhetoric muddled my brain. That ability belongs to One Entity alone. My choice? Pray… hard, ’cause no one on Earth is listening to We, The People.

Posted by: Linda A. | January 14, 2009, 12:56 am 12:56 am

If we disqualify Mr. Geither then we should also disqualify Summers, Hillary, Holder, and Emanuel. They are all tainted and should get the boot.
I suspect Obama will circle the wagons and try to protect them. For this, he will pay a political price. Just as George Bush was judged harshly for going back on his no new taxes pledge (read my lips), Obama will be judged harshly if he does not produce an administration that produces real change. This is after all what he promised during the campaign.
Change here means getting rid of politicians that have used and abused the system for personal profit. Greed and arrogance are not principles of change.

Posted by: Kim | January 14, 2009, 1:02 am 1:02 am

Of course he should be disqualified. How do you “forget” the price of a new car? This is just more politics as usual. They make the laws for other people, but see themselves as above the law. This IS the change Obama will give us: his buddies making money on our backs instead of Bush’s.

Posted by: milehiscott | January 14, 2009, 1:15 am 1:15 am

YES, he should be disqualified.
Also, if someone in govt does not have to pay the tax penalties, then non govt people should not have to pay tax penalties either.
Govt officers, congressman, senators and employees should not think they are above the law.

Posted by: kris | January 14, 2009, 1:26 am 1:26 am

The problem with Timothy Geithner is not that he fouled up a tax return long ago but the fact that he is this behind-the-scenes, out-of-view kind of guy that people really don‘t know very well. He’s not a very affable type of guy. The new Treasury Secretary will need to be a take charge, very visible, in public view type of person, which I really don’t see in Geithner. So I say, yes oust the dude for the simple reason of some improper filing years ago. Because ultimately, Larry Summers should be the Treasury Secretary, because he’s the more genesis mind, but he can’t be because of his fouled up remarks about women and science while he was president of Harvard.

Posted by: dd5549 | January 14, 2009, 1:39 am 1:39 am

If the situation were reversed, I guarantee the Dems would be crying ‘FOUL’ and insist Gethners placement should not be allowed…making way for some sort of backroom deal for some future quid pro quo.

Posted by: Mike O'Neill | January 14, 2009, 3:11 am 3:11 am

we are all human. As a young 22 still growing american i know taxes always give me the fits and until provin otherwise i dont think we can condem a man for makeing a human error

Posted by: Brian | January 14, 2009, 3:12 am 3:12 am

Don’t have any bad will toward the guy, but one’s credulity would be sorely tested.

Posted by: Bob Karl | January 14, 2009, 3:12 am 3:12 am

Disappointing, predictable and sad!

Posted by: Disgruntled | January 14, 2009, 3:13 am 3:13 am

Of course this man should be disqualified. But I’m sure he won’t be. The Dem’s will make excuses for him, like Harry Reid’s…”It’s just a few hiccups” I think not paying your taxes for almost 4 years is more than a hiccup. And they want this man in charge of our tax codes, etc. Maybe that means if he is in, then all of us should just forget to pay our taxes for a few years too and call it “doing a Geithner” and see if we get away with it. Great “Change” that Obama is bringing with him to WA.

Posted by: rms22 | January 14, 2009, 3:16 am 3:16 am

No Way. People with this kind of record should not be appointed to such a high office.

Posted by: Joe | January 14, 2009, 3:53 am 3:53 am

Disqualify him. Sorry, but $3400 is an honest mistake. $34,000 is either really dumb or a tax cheat. My husband is self employed, and we know that if you miss one payment by a week or two the federal and state tax people will be all over you in a heartbeat.We found out the first month in business that you pay taxes monthly when you are self employed. Guess you have to know someone inside the beltway to be able to cheat on your taxes and then get an appointment to be the Secretary of the Treasury. Hey, give me back my tax money. I would take better care of it myself. Thanks

Posted by: Paulette Sheward | January 14, 2009, 4:13 am 4:13 am

Disqualify him! I agree with Geithner that social security is a giant ponzi scheme and not worth contributing to… But the treasury secretary needs to at least pretend to believe in the game.

Posted by: noainc | January 14, 2009, 4:34 am 4:34 am

Obamas “tough” vetting staff cleared this guy? This guy reminds me more of a Republican than “change I can believe in.” What a joke.

Posted by: loveliberty1972 | January 14, 2009, 6:08 am 6:08 am

REPUBS GET OVER IT…
1)Tim Geithner is not a politician. He is the Federal Reserve Top Guy in NY
2) Obama Vetting process did uncover the unpaid taxes and not Senate hearings. Press is playing fool here.
3) As soon as vetting uncovered unpaid taxes, Tim paid the back taxes with interest.
4)Life is not in black and white. IMF provides its US employees with W2 but treats US citizens not an employee but independent contractors. So the unpaid taxes were the ones that you have to pay if you are self employed. It was a mistake yes but I think this mistake deserve benefit of doubt as this is not same as not filing your tax returns.
5) Instead of filing multiple comments under different pseudo names…folks go get a life..

Posted by: Tough_Luck | January 14, 2009, 6:45 am 6:45 am

Paulette Sheward: “My husband is self employed, and we know that if you miss one payment by a week or two the federal and state tax people will be all over you in a heartbeat.We found out the first month in business that you pay taxes monthly when you are self employed.”
You must be talking about state taxes. Federal taxes are quarterly payments. And, having missed some taxes myself, it took the IRS 2 years to notice and when they did they treated me just like Geithner or any other taxpayer – they sent a notice with tax payable, interest and penalty, I paid it, and was done. Your arguments would be far more convincing if you didn’t embellish and exaggerate.

Posted by: jhw539 | January 14, 2009, 7:42 am 7:42 am

I would be fine with having the guy in charge of our tax code to know intimately how absurdly complex and unwieldy it is. It is well documented that at times the IRS itself has conflicting opinions of their own code at times (multiple different answers to the same question). Perhaps after this raking over the coals Geithner will be sympathetic to the typical American, who does not have an accountant and lawyer to figure out their taxes!

Posted by: jhw539 | January 14, 2009, 7:44 am 7:44 am

He should without question be disqualified. This smacks of dishonesty.

Posted by: cre | January 14, 2009, 10:26 am 10:26 am

Obama says “honest mistake”. It’s a very sad day when our next President has no backbone. We spent too much time already on this subject. Geithner should be denied and out of the limelight immediately. He has no integrity.

Posted by: Chuck | January 14, 2009, 10:30 am 10:30 am

Just another example of the “same old same old” this administration employs, from its linkage to the cash milking of FNMA to hiring Hilary, a truth-challenged person as Sec’y of State

Posted by: 75fxe | January 14, 2009, 10:43 am 10:43 am

SSI recips don’t need this level of political performance action, and styling support advantages. Can’t you program a computer polling button, here?

Posted by: Jardean | January 14, 2009, 12:13 pm 12:13 pm

REPUBS GET OVER IT…
1)Tim Geithner is not a politician. He is the Federal Reserve Top Guy in NY
2) Obama Vetting process did uncover the unpaid taxes and not Senate hearings. Press is playing fool here.
3) As soon as vetting uncovered unpaid taxes, Tim paid the back taxes with interest.
4)Life is not in black and white. IMF provides its US employees with W2 but treats US citizens not an employee but independent contractors. So the unpaid taxes were the ones that you have to pay if you are self employed. It was a mistake yes but I think this mistake deserve benefit of doubt as this is not same as not filing your tax returns.
5) Instead of filing multiple comments under different pseudo names…folks go get a life..
———————————–
Tough_Luck,
Get Over it My @ss !!!
Try growing up!
This is guy is a complete FRAUD! NO ONE in this guy’s position makes this “mistake”. FOUR YEARS IN A ROW!!!
your points…
1. Who cars if he is a politicain or not. That changes nothing about his responsibilty.
2. This supposedly briulliant man could not add 2 + 2! He just “forgot he was in the EXACT same situation for his ’01 & 02 taxes ??????? COME ON NOW!!!
3. As soon as someone ORDERED him to pay them because there would be political fallout….He complied.
4. I am contractor who has worked for companies that just issused checks to pay my billable hours. I KNOW, REPEAT KNOW, that I OWE taxes on that money! I plan for that and the accountant that does my taxes helps me to esimate how much money I will have to set aside to handle that.
In the REAL world, we called that PERSONAL RESPONSIBILTY!
5. I only have this one name here, and if you and your liberal buddies cannot handle the fact that Obama’s fraud appointees are going to be treated in the same manner that you have treated Bush, too bad!… In your own words…GET OVER IT!!!
This guy (As Well As Charlie Rangel) should be tossed right now!!!

Posted by: Mike_C | January 14, 2009, 12:15 pm 12:15 pm

we are all human. As a young 22 still growing american i know taxes always give me the fits and until provin otherwise i dont think we can condem a man for makeing a human error.
————————————-
Brian ,
We forgive you, we were 22 once as well and looked at the world in a nieve fashion.
We are not talking about human error here, NO ONE who does what this guy does for a living makes this “mistake”.
Not 4 yrs in a row, and not after the IRS has informed you about the final 2 yrs.
This is a man who has been behind the scenes of things for a while, and with all the talk about where the bailout monies have already gone, a good question would be what was Tim Geithner’s role in what AIG did with the money they recieved?
Now we are being asked to place our trust & faith in this man to facilitate the “big fix”. Maybe NOT!
Basic Liberalism 101:
“DO AS I SAY, NOT AS I DO”

Posted by: Mike_C | January 14, 2009, 12:25 pm 12:25 pm

NO! NO! NO! This person is either stupid, incompetent, or a crook. Maybe is is some of all. I don’t care how “qualified” he is for this or anything else, there are SERIOUS red flags waving in front of this country. If Obama allows this candidate to cross the line into his administration, that will tell me a lot more about Obama. PAY ATTENTION TO THE ACTIONS!

Posted by: Vivian Macias | January 14, 2009, 1:19 pm 1:19 pm

I know very little about Timothy Geithner but if he had been a tax practitioner as covered under Treasury circular 230 this would have been an issue.
Treasury circular 230 Sub-Part C empowers the Secretary of the Treasury to censure, suspend or disbar a practitioner before the IRS if the practitioner
is shown to be incompetent or disreputable (within
the meaning of §10.51. Section 6 States
(6) Willfully failing to make a Federal tax return
in violation of the Federal tax laws, or willfully evading,
attempting to evade, or participating in any way
in evading or attempting to evade any assessment or
payment of any Federal tax.
Did he himself violate the code of ethics he will now be called on to enforce

Posted by: Linda | January 14, 2009, 1:52 pm 1:52 pm

Hmmm. I kinda like the idea of having a guy in there who has experienced “life under the angry and intimidating eye” of the IRS, himself. That would be interesting. Maybe it will take someone like that with such an experience fresh on their minds to get the code’s complications and dysfunction gutted and simplified so that others will not find themselves in that same situation. In fact, why don’t we find someone who has been hounded over and over again by the IRS? Let them loose to reform this agency from the inside out?
:-)

Posted by: gb | January 14, 2009, 2:03 pm 2:03 pm

The big question is when did Obama learn about this? What does he want to do and what does that tell us. As for the tax “mistake” not year after year.

Posted by: big question | January 14, 2009, 2:06 pm 2:06 pm

I think people need to find something
esle to talk about. If you are going to
look for dirt then looking in your own
closet.

Posted by: Virginia Rucker | January 14, 2009, 2:08 pm 2:08 pm

Shouldn’t the IRS have uncovered the error? Why are we blaming someone who made a mistake if the IRS wasn’t up on the code enough to have caught it.

Posted by: Melanie Cich | January 14, 2009, 2:08 pm 2:08 pm

yes it should disqulifie him. No excuse as we all know what we have to include in our taxes.

Posted by: willard | January 14, 2009, 2:09 pm 2:09 pm

Not only disqualified, but also arrested and charged. Oh wait, he’s a Democrat? Never mind. Sorry.

Posted by: Ron | January 14, 2009, 2:11 pm 2:11 pm

He should be disqualified. How can OBama seriously considering him for this position? I do my elderly folks tax return each year and the IRS sends them a statement for appox. $68 penalty for not estimating their yearly taxes. This guy did not pay over $34,000. I wonder if they would put my 90 year old Dad and 85 year old mother in jail for not paying $68. Maybe I’ll tell them not to send the IRS any owed money this year and see if the IRS “forgives” me!!

Posted by: sue | January 14, 2009, 2:18 pm 2:18 pm

“Honest mistake”!!! It’s appalling that Mr. Geithner was “forgiven” payment of taxes, penalties and interest for two of the four years in the first place. Now that he’s seeking to be the Treasurery Secretary, he thinks maybe he should pay everything. If the average citizen failed to pay a portion of his taxes, his bank accounts would be seized as well as everything else he owned. I’m tired of politicians who feel they are above the law. There’s no question about it…Mr. Geithner does not have the ethics for the position of Treasury Secretary. He should be disqualified.

Posted by: Loretta Martinez | January 14, 2009, 2:20 pm 2:20 pm

No, he should not run the Nation’s Treasury Department! For God’s sake any third grader could figure that out.

Posted by: Harper888 | January 14, 2009, 2:21 pm 2:21 pm

I so hope that Omama starts off with a crook!

Posted by: Barb | January 14, 2009, 2:25 pm 2:25 pm

Yes, He should be disqualified !
How does anyone with financial expertise forget to pay $34,000.00 ?
NOT $34.00, NOT $3,400.00 but $34,000.00
for several years ?
Now this man is going to be in charge of the Country’s money ?
OBAMA Mania at it’s BEST !
Lola

Posted by: Lola | January 14, 2009, 3:11 pm 3:11 pm

IF it was an honest mistake, IF it has been correct (with all the necessary additional fees, penalties, etc applied), and IF he passes the hearings, maybe he should be given a chance. After all, did he prepare his own taxes, or did ‘his people’ screw up?I think it depends on the circumstances.

Posted by: Jana | January 14, 2009, 3:30 pm 3:30 pm

He should be disqualified. I go to a tax consultant every year to do my taxes and one year my home was destroyed by fire and I had to use my retirement savings and I had to pay taxes a year later on my retirement savings even though it was a small amount. Why did it take the IRS so long to tell him he owed that amount of money. Low income citizens are penalized more than rich citizens.

Posted by: Valerie | January 14, 2009, 3:55 pm 3:55 pm

Get serious! Washington has plenty of crooks already. Throw the bum out and get back to work.

Posted by: Shock & Awe Again | January 14, 2009, 3:55 pm 3:55 pm

I dunno? What I do know is I’ve personally made mistakes on my tax returns with no malfeasance intended. The IRS discovered the mistake and billed me and I gladly paid the amount owed including interest because it was my mistake. Furthermore, I have overpaid my taxes and the IRS has sent me a refund including interest.

Posted by: Norm | January 14, 2009, 3:57 pm 3:57 pm

No he should not be disqualified. Find anyone you know or yourself who has not made an error or two down the road. Get onto more pressing business and stop all the nitpicking.

Posted by: Gale | January 14, 2009, 6:23 pm 6:23 pm

If Timothy Geithner made honest mistakes on his tax returns he is not qualifed to be the Secretary of the Treasury Department much less the head of the IRS. The mistakes he made should be known by any tax preparer and would be criminal for an average citizen. These mistakes are felonies and are punishable by up to 3 years in prison and a fine of up to $250,000. To top it off, Mr. Geithner didn’t pay the taxes until now. He was also spared the penalites a normal citizen would have been required to pay. I know people who went to prison for actually making mistakes on tax returns. Where is the equality of justice in the United States? Confirming Timothy Geithner proves there is NO change coming the Washington. It will continue to be politics as usual. Everything old is new again!

Posted by: Linda M | January 14, 2009, 6:48 pm 6:48 pm

Quite simply, Obama’s team should rescind the invitation to Mr. Geithner, and he should retreat into the obscurity from whence he came.
I would really like to see the promise of Obama’s campaign fulfilled, and allowing Mr. Geithner’s appointment to stand would, in my opinion, diminish the hope and trust inspired in many of us by Obama’s historic election.

Posted by: Pam Randolph | January 14, 2009, 8:49 pm 8:49 pm

It is not honest to say something like this is an “honest mistake.” If he was a Republican, you can be sure the Dems would have disqualified him immediately and instigated an investigation besides. He is NOT qualified–4 years of not paying taxes!!!

Posted by: Mae | January 14, 2009, 11:35 pm 11:35 pm

In his defence, The rich people in Manhatten play by their own rules. They belive that in leu of paying taxes they should instead be getting bailouts and government payouts for granting us the pleasure of observing their chic, trendy lifestyles. Besides, it takes a fair amount of money to have to bribe both political parties!

Posted by: loveliberty1972 | January 15, 2009, 7:15 am 7:15 am

Should Geithner be Secty. of Treas?
!!!!NO WAY!!!!
If you are supposed to lead by example, what sort of example would this be setting for the rest of us poor slobs?
Geithner could hardly be considered a “Babe in the Woods” when he began working for the IMF. The company issued W-2′s but according to sources, did not withhold and match Soc. Sec. and MediCare. Inasmuch as Mr. Geithner, by his own reported admission, filed his own 2001,2002,&2003 tax returns, he couldn’t but have looked at the W-2′s from IMF. The rather glaring empty blocks on the IMF W-2′s for FICA and Medicare wages should have been a warning to Geithner that something was amiss, prompting a visit to that firm’s
payroll and/or HR departments for clarification and/or correction.

Posted by: George | January 15, 2009, 12:14 pm 12:14 pm

His claim that his “accountant made him do it” sounds a lot like a little kid pointing a finger at his brother/friend and saying “he made me do it”. Either he’s an idiot or a crook and in either case he’s not competant to do the job. Is anyone else sick of all the excuses for poor behaviour, either past or present, this new administration is trying to pass off as “honest mistakes or human error”??
Geithner needs to step away from the country’s money immediately.

Posted by: cc | January 16, 2009, 12:09 am 12:09 am

The press goes too easy on Obama. Geithner broke the law, knowingly, on two different issues, over and over again. He gets rewarded with a cabinet position gift from Obama???????? That is just not right. Bad example for this country.
It says again, like with the Kennedys, that if you have the right contacts and/or money you can buy anything in this country. After all, Obama bought the election. Now he is selling out to and rewarding the crooks like he did in Illinois. Kennedy got by with murder and bought elections with his family’s money.

Posted by: katherine | January 17, 2009, 12:31 am 12:31 am

What honest mistake?
What kind of man did you people elect as a president, who rewards crooks, mafia and his circle he worked in many years in Illinois? It is a disgrace even to give him a chance to be heard.If it would be the other way (republican), they would have turned inside out this guy. If I do not pay my taxes, I go to jail and he is chosen for the secretary of TREASURER. They even have the nerve to go on with him? All the previous presidents had to be “perfect”, they were analized deep to their bones and who they associated with. This one gets away with everything, who did he surround himself with and now this crook for the SECRETARY OF TREASURER (finance minister) position. Obama knew how to manipulate the “MAJORITY” and got elected and now he insults us with this crook? They call it honest mistake? Do they have a new definition for the word “honest”?

Posted by: katharina | January 17, 2009, 2:47 am 2:47 am

Obama needs to get another candidate in there.
Geithner has lost credibility. It’s like hiring a
bartender who is also an alcoholic.

Posted by: spacerook1 | January 17, 2009, 10:09 pm 10:09 pm

Hmmm, this seems more like same ol, same ol, rather that “change I can believe in” What gives, Barak?

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