IRS workers see double standard on tax errors
By Tom Hamburger and Ralph Vartabedian | Tribune Newspapers
April 15, 2009
The Treasury secretary, who oversees the IRS, didn't pay all his taxes. Neither did five other top nominees for the Obama administration, or their spouses.

Now, as Wednesday's tax deadline looms, some Americans are wondering why they should comply with the arcane requirements of the Internal Revenue Service when top administration officials failed to do the same. Even some IRS employees are upset at what they see as a double standard.

The most criticized example has been Treasury Secretary Timothy Geithner, who admitted not paying $34,000 in payroll and Social Security taxes, saying his failure to pay was an oversight. Five other nominees disclosed similar tax issues, including one as recently as two weeks ago when Kathleen Sebelius, President Barack Obama's pick for secretary of health and human services, admitted she didn't pay $7,040.

"Our members are upset and angry," said Colleen Kelley, president of the National Treasury Employees Union, referring to concern bubbling up within the IRS over unusually strict rules that can cost agents their jobs if they make a mistake.

Stroger floats partial sales-tax rollback In some cases, IRS employees have lost 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 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."

Robert Schriebman, a California tax lawyer who has testified before Congress, said his clients are seething over the tough treatment they get from the IRS, while some in the president's Cabinet apparently were able to duck paying their taxes.

"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."

IRS employees have reported that taxpayers are occasionally citing the Geithner case when they are asked to pay their tax bills. "It's making the compliance conversation harder," Kelley said.

Geithner's $34,000 in unpaid taxes pales in comparison to the more than $128,000 owed by Tom Daschle, Obama's first choice to run health and human services. But Geithner's position overseeing the IRS has made his case particularly galling in the public's mind.

IRS Commissioner Douglas Shulman told reporters Monday that there is no discrimination when it comes to tax enforcement.

"The American people are pretty smart," he said. "They understand that people who are nominated for high office are going to be put under a level of scrutiny. They also understand the tax code is incredibly complex."

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."

Most americans also don't know how our government works either.

halonachos wrote:It might've been. I'm not too sure, but I know the media definitely got Obama into office.

Polonius wrote:

halonachos wrote:It might've been. I'm not too sure, but I know the media definitely got Obama into office.

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And, you know, the majority of Americans that voted in the election.

There's a book about this.

We were surprised that Obama wasn't going to send the pirates the money and some fruit baskets for their problems. Instead he sent special forces, I give him credit for that. He wants to talk to ahmenijadidad(the gy with a funny name) and doesn't sound like he would do anything if they did make a nuke.

reds8n wrote:Hmm... well as another outsider :

Obama doesn't make you look weak, he actually makes you look like a country involved in and capable of understanding the realities of the 21st century.

Most of the world thought, indeed thinks, his predecessor and his administration was perhaps the worst thing to happen to the USA since...well... independence ? ..nah.. for a long time anyway.

Your standing in the world diminished and your general economy slowed and then collapsed.

Bowed to kings ? WTF ? Where's that then ?

Shook hands with Queens ? What do you think she should do ? Chin her one ? Your complaint is you currently have a leader who isn't an embarrassment when he goes abroad ? You do understand how diplomacy, indeed basic manners actually work yes ? What should she have done then? You do know Britain's not some feudal state yeah ? ..yeah ?

Bush and his administration didn't do your country justice as he made you appear small, petty and ineffectual bullies to the rest of the world. Sure your country was hurt, terribly and by evil men who deserve to die. But what he did and what America let him do lost you so much standing in the world I really doubt you'll ever get it back.

Not least the fact that in my lifetime I remember hearing/being told..hell even thinking once upon a time.. that America was the good guys and when they turned up they'd be here to help. Barely anyone thinks that anymore I'm afraid.

I'm not for one moment saying that Obama is the/a messiah or anything-- I'm thoroughly atheistic -- but he's a step up from what you had for sure.

reds8n wrote:I would argue that showing basic manners when abroad in a foreign country, when you are the guest, is very wise and..well..polite.