Mr. Geithner faced some uncomfortable questions over why he failed to pay more than $34,000 in Social Security and Medicare taxes over several years while working at the International Monetary Fund.
Sen. Jon Kyl (R., Ariz.) called it “incomprehensible” that Mr. Geithner didn’t realize he needed to pay employment taxes. He also questioned why Mr. Geithner took so long to correct the problem for tax years 2001 and 2002. The payroll-tax errors were discovered during a 2006 Internal Revenue Service audit of Mr. Geithner’s taxes, and he paid what he owed for 2003 and 2004. But Mr. Geithner didn’t pay the Social Security and Medicare tax he owed for 2001 and 2002 until after Mr. Obama indicated in the fall that he planned to nominate him as Treasury secretary.
“I regret having not done that sooner,” Mr. Geithner said. “If I thought about it more, maybe I would have come to it sooner. I did not believe when I settled that audit that I had an obligation to go back. I had not thought about it in the intervening years.”
Geithner signed a form acknowledging his responsibility to pay his taxes. He accepted money from the International Monetary Fund to offset payment of his taxes. He did not pay his taxes.
Upon getting an audit by the IRS, he paid back taxes for 2003 and 2004, but still did not pay his 2001 and 2002 taxes.
He first said he did not realize he had the obligation.
Today he said Turbo Tax screwed him up. BTW, Intuit, which makes Turbo Tax, saw its stock drop as a result.
Tim Geithner was either lying then or lying now. The odds are, in blaming Turbo Tax today before the Senate in sworn testimony, Tim Geithner committed perjury.