Geitner and Daschle Tax Scandals May Lead to Tougher IRS Compliance Initiatives
It is a known fact that 1 in 6 (or about 16%) of the taxpaying public have tax problems. Given the current state of the economy, I expect that rate to increase significantly. It’s not surprising that high profile people have tax problems too. As a matter of fact, it is not uncommon for high income earners to have issues with the IRS.
Unfortunately, the Obama Administration may be sending the wrong message to the American taxpaying public by apparently condoning the behavior of Tim Geitner and Tom Daschle. Although Daschle withdrew his name as a nominee for the Health and Human Services Secretary is still leaves a bad taste in people’s mouths. And I am positive that if he weren’t named as a nominee he would still owe the IRS $120,000 + today.
However, these recent tax scandals involving Obama administrative appointees may end up leading the way to tougher tax compliance. It is likely as the new head of Treasury, Geitner will be pressured to send meaningful signals through strong IRS compliance initiatives- since the ‘other side of the aisle’ will be looking for an opportunity to attack a key lieutenancy of the Obama administration for past ’sins.’
Politics aside, strong tax compliance is one of the very few ways the Administration has to offset a rapidly ballooning federal deficit- the current annual tax gap…what should have been paid v. what was collected…is approaching $400 billion or half the TARP.
As a recent article in the Washington Post points out, the current tax system is complicated but the tax code can hardly be blamed for the recent problems of Obama administration appointees who came up short in what they owed the government.
TaxProf adds: “These are not rocket-science kinds of tax issues. I take them at their word, but on the other hand, these were not cases of something really esoteric.”
If you are in trouble with the IRS, our specialized staff of tax attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
More Tax Help, IRS News and Tax Relief Tips:
- Why the IRS Picks on Small Businesses and How to Avoid Triggering an Audit
- Obama Budget Proposal Starts to Address the Tax Gap and Bolster IRS Compliance
- Obama’s Efforts to Eliminate Loopholes and Bolster IRS Compliance Fall Short of Closing Tax Gap
- California Taxpayers with the Largest Delinquent Income Tax Bills Owe $143 Million in Back Taxes
- Stop Tax Haven Abuse Bill: Preventing Offshore Tax Evasion Another Sign IRS Enforcement is on the Rise
Tags: daschle, geitner, IRS compliance, IRS enforcement, Michael Rozbruch, tax expert, tax problems, tax resolution expert, tax resolution services, tax scandal
April 3rd, 2009 at 1:54 pm
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April 10th, 2009 at 4:37 pm
[...] income he made while working for the International Monetary Fund. And former Senate Majority Leader Tom Daschle withdrew as a nominee to Health and Human Services Secretary after it was disclosed that he failed [...]
April 21st, 2009 at 7:57 am
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