Treasury Pick Geithner Missed $34,000 of Tax Payments

Yesterday, it was revealed that Treasury nominee Timothy Geithner didn't pay $34,000 in taxes between 2001 and 2004. Geithner, according to the NY Times, "huddled privately with members of the Senate Finance Committee on Tuesday afternoon to explain that he had now paid the back taxes and interest" (though he didn't pay most of it until last November). Now his confirmation hearings have been postponed.

While both Democrat and Republican Senators expressed support for Geithner's confirmation, the Times points out, "At least, the flap is a major embarrassment for the man chosen to head the Treasury Department, which oversees the Internal Revenue Service, especially as Mr. Geithner worked at the Treasury under three presidents." No kidding! Apparently Geithner didn't realize that while at the International Monetary Fund he was considered "self-employed" so his pay didn't cover taxes. Obama's transition team found out these details while investigating Geithner and told senators on December 5.

Geithner also found out during the hearing that a former housekeeper's legal status expired for a few months before she quit working for him. Obama communications director Robert Gibbs said, "He made a common mistake on his taxes and was unaware that his part-time housekeeper's work authorization expired for the last three months of her employment." Politico writes that the Obama transition team's "PR push" may help Geithner's chances; true, it's no corruption probe.

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By Jen Chung in News on January 14, 2009 10:39 AM

Comments [rss]

jt10000

Ditto what lanciano said.

lanciano

It is embarrassing but he's not a crook. To put Geithner in the same paragraph as the likes of dirtbags like kerik --as some outlets are--is totally ludicrous.

Felix Hoenikker

Did someone just pull articles from Clinton-era confirmations? Too eerie.

In other news, GOP pol with religion/family agenda caught in gay sex sting.

yg

Taxes are for poor people.

NannyState

Yet all the high-end prostitutes were carefully and properly expensed. What gives?

FrankMartin

Even the IRS said this is a common problem. But when you work at the IMF you are an independent contractor, a freelancer if you will. I guess it could be a mistake, but man it is a big one for a guy who wants to oversee the IRS.

glennQNYC

If Obama wants him, this guy could have molested a pack of Cub Scouts and the Left wouldn't care.

angry_pickle

Please recall that your conservative married leadership were having same-sex trysts in motels and public bathrooms.

AvenueHebrew

Except he did get around to paying it as of last year. Mistake or not, it's taken care of. So what the hell ever.

EastRiver

It's a little sleazy the pay the amount owed for the years you're audited (2003 and 2004) but not for the few years before that when in all likelihood he knew the same mistake was made (2001 and 2002). The argument that the three year window for the IRS to audit a return may be factually correct but is hardly ethical. In fact, it's not terribly bright for anyone that harbors any desire to work for the government as almost any high level position would require a background investigation.