Timothy F. Geithner, Part Duex

[Liberal]

I paid interest, but no penalties. And I’m damn sure not a big shot.

[DrDeth]

@gonzomax

Geithner, Choice for Treasury, Questioned on His Tax Returns - The New York Times This article says the IRS assessed the taxes he neglected to pay and charged interest. The IRS waived the penalties. Waived. That does not mean he was not subject to penalties, only that he was a big shot and got away. You would not have had them waived.

Whenever (in an audit) the IRS doesn’t assert Penalties they 'waive" them.:dubious: That’s IRS terminology, you git.:rolleyes:

My Bro had the IRS “waive” penalties for almost every audit he ever had, so it is hardly just for “big shots”. He got the IRS to waive the penalties for me.

[kaylasdad99]

I suspect the IRS’s criteria for “asserting” or “waiving” penalties tend to track with their assessment of whether the taxpayer CHEATED or made an honest mistake.

[gonzomax]

@kaylasdad99

I suspect the IRS’s criteria for “asserting” or “waiving” penalties tend to track with their assessment of whether the taxpayer CHEATED or made an honest mistake.

I wish the IRS worked that way. It depends on what an individual case worker decides. Some are flexible. Some want a pound of flesh. But if you are a big shot ,you are more likely to get breaks. My wife worked for the IRS for 25 years. I have not grown a warm and fuzzy respect for them.

[DrDeth]

@gonzomax

I wish the IRS worked that way. It depends on what an individual case worker decides. Some are flexible. Some want a pound of flesh. But if you are a big shot ,you are more likely to get breaks. My wife worked for the IRS for 25 years. I have not grown a warm and fuzzy respect for them.

My Bro was there for 20. You are correct in that it is somewhat up to the individual agent. However, he laughs at the idea "big shots’ got breaks, becuase one sure way to get a penalty asserted was to be arrogant towards your auditor.

Now, it is true that if you brought in a respected Rep, a CPA or an EA, then you almost always had penalties waived. Big Shots can afford such reps, but so can us working stiffs. OTOH, Big Shots were much more likely to come in and try to bulldoze the agent with their arrogance, which is the wrong way to go.

http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2007/08/only-the-little.html
"*Leona Helmsley…The full quote : “We don’t pay taxes. Only the little people pay taxes.”

It was overhead by a maid and subsequently recounted in testimony during Helmsley’s 1989 trial for tax evasion, for which she was convicted and eventually served 18 months in prison."*

I want to stress how rare it is for anyone for actually go to the grey bar hotel for Tax violations. More often it’s a agreement to pay, a huge monetary fine, a promise to file properly in the future, and a suspended sentence. Leona Helmsley was definately a “big shot” and it worked against her.

[gonzomax]

She was a big shot and a big mouth whose attitude forced them to do something serious. If she had said that and walked, she would have proven that they were paper tigers and the rich can ignore them. She is not a typical case for a rich person.