New Treasury Secretary

[Jiggers]

Poor?

Caroline Kennedy just had to sacrifice a Senator appointment by Governor Paterson because she didn't pay a Nanny Tax. Poor girl.

This is a major problem. Not just with the arrogant liberals who think the law doesn't apply to them, but to the vast number of those who are wealthy who do the same.

I see it all the time.

Local medical professional client was paying person through medical office payroll. Individual announced that she needed cash only to qualify for benefits for south of the border individual now living in her home and was going to quit unless she was paid in cash and not reported. Medical professional no longer writes her a check, but cashes one each week to pay her. No longer reporting on medical office payroll. I advised that once I found out that what the medical professional was doing was wrong and needed to amend past payroll and income tax returns. Lost client.

Local wealthy rancher has 24/7 in home care for his aged mother with Alzheimers. Cashes large check for cash each week. Nothing reported.

Another local wealthy rancher has a housekeeper. Reports small check each week and we file the W-2, Schedule H, and he pays taxes. But I found out he was also paying her $100 per week in cash, otherwise she wouldn't work.

And another and another and another.

And now we have a new Treasury Secretary Nominee who cheated on his income tax.......

[erchess]

Immediately after my last post in this thread

I emailed both of my Senators to urge rejection of this nominee on the grounds that he behaved too imprudently in regard to his personal finances to be allowed a Cabinet Level Post especially Secretary of the Treasury. I also pointed out that the Tax Gap is largely due to people who deliberately cut corners on their taxes and figure they will pay up plus some extra spare change if they get caught. I said that in response to this the IRS has been given powers that scare many people and suggested that part of what is called for is a better example from high ranking government personnel. I was influenced by what I read here and I hadn't even seen the best of the thread. Ty everyone.

[Uncle Sam]

How About...

We're continually discussing the people in retail cash businesses, service workers, etc,
But there's another group that doesn't get mentioned too often who also cheat -

Schoolteachers - who do private tutoring after school hours - who get paid where there's no tracking system at all, who don't report this income.

But if a student cheats on their school test - it's a criminal offense.

I guess it's okay to corrupt someone else's professional ethics - so long as it's not your own.

I wish there was a way in which parents who pay for private tutoring for their dependent children could get a tax benefit by completing a tax form (similar to 2441) where to get the tax benefit, they must report the provider's license number - then these schoolteachers would become honest taxpayers whether they like it or not.

[erchess]

Private Tutoring by Teachers?

Ages ago I substitute taught in two school systems that later merged and I had a part time regular teaching position in another school system. All of this work involved contracts that forbade me to tutor for money students at my schools. With respect to the systems where I subbed I was free to tutor for money one or more students at a given school if I did not accept subbing assignments at that school. Do teachers now take pay from the public for teaching and then sell additional teaching to the same students?

[Uncle Sam]

Tutoring

I can't claim whether they do or don't accept their own students - but they publicize the fact that they DO tutor privately. I can only assume that if their union contract prohibits privately tutoring their own students they wouldn't do it - but my point is they take it for granted that no one monitors their tax reporting for this extra income.

[joanmcq]

How do you know they cheat? I have a college professor who also teaches privately (music lessons). I've been doing a Sch C for him for years.

[Bees Knees]

I can't claim whether they do or don't accept their own students - but they publicize the fact that they DO tutor privately. I can only assume that if their union contract prohibits privately tutoring their own students they wouldn't do it - but my point is they take it for granted that no one monitors their tax reporting for this extra income.

I've had several college professors over the years. They all have reported their extra curricular activities on a Schedule C. I also know for a fact from my college days that whatever union they belong to, there was no prohibition to doing private tutoring. In fact, the school encouraged it as it helped promote their college to all the high school students taking private lessons from the college professors.

[Lion]

Schedule C

I have teachers who tutor, coach, proctor, etc., that we report on Schedules C. I also have seen teachers that reported income on Schedule C with no expenses that I wondered if they were reporting in order to earn SS credits. They're not my clients, so I'm not going to ask them.

[Matt Sova]

More BS

Well if it was NPR it has to be true! Baloney. He knew EXACTLY what he was doing. I find it disgusting that this guy wants to run the Treasury and make sure the rest of the US pays it's fair share.

Kind of like Charles Rangel. Chair of the House Ways and Means and on the Joint Committee on Taxation. He would like ALL S-Corp profits taxed for Self Employment. But, I guess if you have a rental property in the Dominican you don't have to report the income.

People drank the Kool Aid and voted for "change" but we all know it will be business as usual in Washington.

[JohnH]

Well, at least he's from the party of the apology & redemption.
If he were an evil REPUBLICAN, it would be necessary to have him drawn & quartered, which is such a messy but necessary process.

As it is, a simple apology to the Senate Committe will do nicely and he's on his way.
Nothing to see here folks, let's move along...

[joanmcq]

What I was hearing on NPR was tape of Geithner being grilled in the Senate. Don't make this political; I'm a staunch liberal on social, a fiscal conservative, and truly disgusted by Geithner as tax cheat being made Sec. of Treasury. I also doubt he is truly so 'uniquely qualified' since he was at points presiding over the collapse of the financial markets.

So lets please stop partisan party bashing. I'm in CA and am thoroughly disgusted by both parties and both parties non-answers to the states problems. And extremists of all ilks. And if 'so goes CA, so goes the rest of the nation' y'all should be quaking in your boots.