Tax

Monday, May 10, 2010



Hi All,



I do taxes for a number of relatives including my daughter in law who is a self employed consultant. I told her last year to pay quarterly and that she had to pay self employment tax of 15.3% in addition to her income tax and this was quite a shock to her





Tim Geithner our Secretary of the Treasury, the man who is in charge of the IRS forgot to pay his self employment tax, you know the 15.3% tax you had to pay on your income from Portola. He said it was an oversight but there is doubt about that because it first came out that he didn’t pay it for tax years 2003 and 2004 and when it was brought to his attention he paid the $17,230 he owed. Then later they came back and said he also failed to pay for 2001 and 2002 and he had to pay $25,970 more. I might believe that he forgot but when he was reminded it is hard to understand how he would not have thought about earlier years. By the way the IRS charged him interest but no penalty. They could not charge a penalty because that would mean that he knowingly did not pay what was due and that is tax evasion and carries with it jail time.



John/Jack