Tim Geithner, who 24 hours ago was a lay-up for confirmation as Treasury secretary, is now embattled after it became public that he failed to pay self-employment tax during his stint at the IMF and then amended his returns several times after paying only what was ordered by the IRS (an agency that will come under his control as Treasury Secretary) not his total liability. Here is the crux of the matter via the WSJ:
As to why Mr. Geithner didn’t pay all his back taxes after the 2006 audit, an Obama aide said the nominee was advised by his accountant he had no further liability. Senate Finance aides said they were concerned either Mr. Geithner or his accountant used the IRS’s statute of limitations to avoid further back-tax payments at the time of the audit.
Democratic Senators wanted to fast-track the confirmation hearing to this Friday but it is now delayed until after Obama takes office. These issues were identified in the vetting process but were just brought to light late yesterday.
Just one more bit of uncertainty amid uncertain times in the economy and financial markets.
