Thoughtful Thursday – Dying and Paying Taxes

taxesI think you know that old saying that goes: There are only two things you have to do – die and pay taxes.

Unfortunately, it seems that the paying taxes part only applies to you and me while some people are able to make “careless mistakes”.

Case in point — Our new Secretary of the Treasury Timothy Geithner who said he hadn’t paid some taxes on time due to “careless mistakes.” According to an article in The Guardian, after a 2006 audit Geithner paid arrears on his 2003 and 2004 returns, but not immediately on his 2001 and 2002 returns. Apparently the three year statute of limitations had run on those. He did eventually pay them — after his nomination to the post.

Hmm . . . Does that mean that if he hadn’t been nominated he wouldn’t have paid them? What do you think?

I recall the IRS sending letters to my daughter when a math error meant she owed them like 5 dollars. The letter came with all kinds of dire warnings about what would be done if the 5 dollars and interest wasn’t paid on time.

So how is it some people get away with not paying thousands? Do you wonder how this happens?

Let me know what you think about the U.S. tax system or your own tax situation if you are not in the U.S. I know that many of you in other countries pay even higher taxes.