Saturday, April 04, 2009

taxing change

Tim Geithner

You are in good hands with Tim.

Ok if you expect some strong words about abolishing the tax code or flat tax don't look here. But I did find an interesting view on that subject at Forbes.

I just have a complaint and suggestion.

I had the same type of problem that the Secretary of the Treasury had on his taxes. If you don't know or remember, our
Secretary of the Treasury had some errors in his past tax returns that became very public during his confirmation hearing. (just a side thought here - if you ever want to find the goods on a spouse or ex, subject them to a senate confirmation hearing)

So I was lucky enough to work last year but some of my income was the self-employment type (the 1099 route for those accountants reading). I underestimated my employment tax (SS/FICA) and therefore underpaid my withholding. It's not like I wasn't going to pay. Hey I'm good for it. The IRS doesn't care they want their money on time.

So you know what they do when you underpay during the past year?

They fine you a penalty.

What do they do if you pay in too much?

Give you a refund WITHOUT interest.

This does not seem fair. If they have fines then they should pay interest.

But here's my suggestion:

According to wikipedia the top official in charge of the IRS, Mr. Secretary of the Treasury had an error (underpayment) of $35,000.

So the IRS should implement the Tim Geithner threshold -- no penalty for any underpayment less than $35,000.

Hey we both used Turbo Tax - I waiting for my Treasury appointment - Under Secretary for new ideas.

Tim Geithner

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