A third nominee to join the Obama administration has gone down in flames after revelations about problems with income taxes.
A Senate panel last night called off confirmation hearings for U.S. Rep. Hilda Solis, who was nominated to lead the Labor Department, after USA Today raised questions about tax liens filed against her husband.
Early this week, former Sen. Tom Daschle withdrew from his nomination to head Health and Human Services after his lack of reporting income on a timely basis came to light.
Also pulling out was Nancy Killefer, sought by Obama to become the first chief White House performance officer, after questions were raised about her tax record.
Perhaps the highest-profile tangle, Timothy Geithner, was confirmed as Treasury secretary despite concerns about his tax forms.
The string has left a lot of ordinary people wondering whether anyone of influence pays their share.
Itâ??s not as if the IRS is shirking its duties, says Carol Howard, tax director at Indianapolis accounting firm R.J. Pile & Co. If anything, Howard says, the agency has been cracking down to the point of doing more harm than good.
One Pile client recently received notification that he could not deduct $2.4 million in contributions made to charitable organizations in 2006. There was no explanation of the rejection, leaving the matter up to the client to prove the contributions were on the level.
â??Itâ??s going to get to the point where they keep poking people like this, and well, itâ??s like, whatâ??s the use?â?? she said. â??Youâ??re guilty until proven innocent.â??
So, if Howardâ??s experience reflects new IRS aggression, what do you make of so many nominees making â??mistakesâ?? on their forms?
A Senate panel last night called off confirmation hearings for U.S. Rep. Hilda Solis, who was nominated to lead the Labor Department, after USA Today raised questions about tax liens filed against her husband.
Early this week, former Sen. Tom Daschle withdrew from his nomination to head Health and Human Services after his lack of reporting income on a timely basis came to light.
Also pulling out was Nancy Killefer, sought by Obama to become the first chief White House performance officer, after questions were raised about her tax record.
Perhaps the highest-profile tangle, Timothy Geithner, was confirmed as Treasury secretary despite concerns about his tax forms.
The string has left a lot of ordinary people wondering whether anyone of influence pays their share.
Itâ??s not as if the IRS is shirking its duties, says Carol Howard, tax director at Indianapolis accounting firm R.J. Pile & Co. If anything, Howard says, the agency has been cracking down to the point of doing more harm than good.
One Pile client recently received notification that he could not deduct $2.4 million in contributions made to charitable organizations in 2006. There was no explanation of the rejection, leaving the matter up to the client to prove the contributions were on the level.
â??Itâ??s going to get to the point where they keep poking people like this, and well, itâ??s like, whatâ??s the use?â?? she said. â??Youâ??re guilty until proven innocent.â??
So, if Howardâ??s experience reflects new IRS aggression, what do you make of so many nominees making â??mistakesâ?? on their forms?
Back to Top
IBJ Conversations
6 Comments
Add Comment
On point, the Fair Tax program, as promoted by Neil Boortz, would, among other things, do away with the evil and corrupt IRS. Do you think any of the lawyer loving members of the Dem party will ever let that happen to their buddies? Doubtful the Reps would ever get it done either due to defectors in their own ranks that are too lawyer friendly.
This would also reduce the time the officials are spending trying to avoid paying taxes and they can devote more time to actually working on issues. It amazes me that Geithner, who is very intelligent and highly compensated does TurboTax himself. He had a complex tax situation. I am sure a CPA would help him for a very fair fee.
If the tax code is so convoluted that even public officials don't know what they owe, how can they expect John and Jane Public to comply?
Simplify the tax code!