With the deadline to file taxes looming the panic begins to set in, particularly for those who keep track of their own income. Although this includes 1099’d employees, it also includes individuals that receive a W-2 from an employer but also receive tips as a regular part of their income. The protocol for filing this income with the IRS can be confusing and daunting, especially if you are a professional waiter who tips, and tips out, on a daily basis. An outline of how to navigate the “tip reporting” process is an important tool to help alleviate any filing anxiety.

Waitress From Maggie’s by Mike Cressy

First and foremost, stay on top of the details. The IRS provides a worksheet for keeping a daily record of your tips and your tip allocations to other employees, form 4070A. This form includes columns to record cash tips, credit or debit card tips and tips that were paid out to other employees. It is important to keep these records because although your employer will have a computer-generated record of your credit card and debit card tips, they rely on you to keep a record and report to them both your cash tips and your tip outs to other employees. Keeping this daily record using the form provided by the IRS can help you to stay organized and accurate when reporting your income and can help you to provide your employer with your total income, as well as your net income.

This record keeping is important for several reasons. Those reasons include but are not limited to the following:

a.) Your employer will use your net tips to determine how much to withhold from your paycheck for FICA and Medicare.

b.) Your employer is required to allocate tips if the total amount of tips received by all employees that receive tips does not equal 8% of the gross sales within a given pay period. The allocation amount is the difference between 8% of the total sales and the amount of tips reported.

c.) If you are pooling tips or are tipping out and you live in California, you should catalog the name of the person you are tipping, which can eliminate issues with the illegal practice of “tipping out” to management staff. Managers and supervisors are considered agents of the employer and, as such, are prohibited from sharing tips with employees per CA Labor Code 351.

Next, if you are wondering about the logistics of tip reporting, you may be wondering about deductions in general. Generally, tip-outs are not considered suitable for itemized deductions that you can make on your tax return. Purchasing a uniform and uniform dry cleaning are examples of expenses that are much more likely to make solid deductions. If you are wondering if it makes sense for you to itemize, it might be worth consulting a tax professional to explore your options and to understand your full financial picture.

It is important that employees that rely on tips keep a close eye on their income and remain mindful of the amount of taxes they are paying in relation to the amount of income they are generating. The ebb and flow of tips by season and by the economy means that they can vary quite a bit and waiters and waitresses can find themselves surprised at how much they have earned and subsequently at how much they owe the IRS.

This guest post was provided by the team at W-2Instructions.com. W-2 Instructions is a helpful guide that provides clear explanations on tax obligations for employees and employers.

Copyright secured by Digiprove © 2011 Mitch Mitchell

Because of some holiday in Washington D.C., everyone got a brief extension to file their taxes, which are due today. As long as your return has today’s date stamp on it if you file by paper you’re considered as getting your taxes in on time.

In some communities there’s at least one post office that will be open until midnight, giving you some extra hours to do what you’ve waited until the last minute to do. In my area, if people go to the big post office in North Syracuse on Taft Rd they’re open until midnight.

There’s always confusion by some people when it comes to this time of the year as it pertains to making a payment. Let’s face this fact; not everyone is able to actually make a payment, or at least a full payment, on tax day. True, the governments, both federal and state, say you need to make a payment, but if it’s not possible then it’s not possible.

That doesn’t mean you shouldn’t file paperwork, though. Ignoring it altogether isn’t one of the smartest moves in the world. That’s pretty much tax evasion, even though all of us know someone who doesn’t send their taxes in yearly. But most of those people know they’re getting refunds, and for whatever reason they don’t worry about it, even when they get those letters later on, usually 3 to 6 months later, saying “hey, did you send your taxes in?” They don’t quite say that, but that’s the general meaning.

I always council friends to send something in, even if it’s just paperwork. By doing that you won’t be accused of evasion. You will eventually get a letter asking for the payment if you believed you owed one, but in that instance you just call the number on the letter, set up payment arrangements, and move on. There will be interest and penalties, but at least you were as upfront with things as you possibly could be. It’s always worse to ignore something out of fear; that will give you more grief than you’ll ever want to deal with, especially if your tax liability is kind of high.

So go ahead, send something in, even if it’s just an extension request. By the way, some states have that set up so you can only do it electronically. That’s a pain, but if you’ve waited until today to get it done then it doesn’t matter either way. Good luck!

Copyright secured by Digiprove © 2011 Mitch Mitchell

You may dabble in several hobbies to indulge your interests and passions. For example, you may be an avid painter, crafter, or musician. You may even make some money off of your hobbies by selling your artwork, creations, and musical recordings at fairs and through websites like Etsy.com, eBay.com, and your own official site. Yet, while these activities may seem innocent enough and require no other action beyond making the product and selling it, you may actually be required to account for your hobbies within your tax forms.

According to the guidelines established by the Internal Revenue Service (IRS), if you have made a substantial amount of money and have had your hobby in place for at least a year, you may have to account for those activities in your tax forms because your hobby could be classified as a business. The difference between a hobby that is still a hobby and a hobby that also happens to be a business is in intention. If you actively create things with the intent to sell them, no matter how small the price of your product may be, your hobby is likely to be classified as a business by the IRS because you purposely try to make money off of your actions. On the other hand, if you actively create things and only sell a few of your creations due to happenstance, then you may not have to report your activities to the IRS because your hobby is still just a recreational activity and is not a money-making endeavor.

There are additional guidelines set by the IRS as well to determine whether a hobby is truly just a hobby or also a business. For example, the amount of time and effort you spend on your hobby could determine whether it is a business or not. If you devote several hours of your day to pursuing a hobby and go through enormous efforts to create something, then you could have a business on your hands. Yet, there are those who are simply dedicated to their hobbies and not looking to make a profit, so with that in mind, the IRS has other qualifications set up for businesses. One of these is whether or not your livelihood depends on your hobby. If you depend on the income earned from your crafting, then you have a business and not just a hobby. Also, if you have ever changed any part of your hobby in order to make it more profitable, you also could be dealing with a business.

Previous business knowledge is another factor that the IRS considers when deciding whether or not your hobby is a business venture. If you possess the skills and knowledge to turn your hobby into a business, then your hobby may automatically be considered a business. For example, if you run a bakery and bake goods at home to sell, then your “side hobby” will most likely be considered a business due to the fact that you could easily earn money off of it.

Finally, whether or not your hobby has made any money is something that the IRS takes into account. Even if you set out to make money with your crafts and music, if you have not made any money since you began, you do not have to mention your activities on your tax forms. Understanding where your hobby stands is essential, thanks to the fact that hobby businesses account for approximately $30 billion in unpaid taxes.

Alvina Lopez is a freelance writer and blog junkie, who blogs about accredited online colleges. She welcomes your comments at her email Id: alvina.lopez @gmail.com.

Copyright secured by Digiprove © 2011 Mitch Mitchell

Tax season is a stressful time for many people, and the longer you procrastinate in preparing and filing your taxes, the more stressful it can get. As the April 18th deadline approaches (it was pushed back this year because of a city holiday in Washington, D.C.), last minute filers sometimes tend to rush through their returns or miss the deadline altogether. If you have not yet prepared and filed your taxes, here is last minute helpful advice.

File On Time Or Get An Extension

Many people do not realize that failing to file your tax return on time can lead to costly fines if owe money. You should do everything possible to get your return in on time and with accuracy. If you do find that you have run out of time, you can file for an automatic extension using IRS form 4868. It is important to note however, that if you are filing for an extension and you owe money, your payment is till due by the tax deadline. If you know you are going to owe money, do your best to estimate the amount due and send your tax payment to the IRS.

The IRS accepts any reason for filing for an extension, so do not worry about getting denied. It is important that you do not feel rushed when filing your taxes because it can cost you money, even if you do not owe taxes because you may miss deductions or tax credits that you otherwise would have taken if you were not careless.

What If I Can Not Pay My Tax Bill?

Many people each year decide not to file their return on time because they cannot afford their tax bill. This is not a smart decision. Even if you do not have the monetary means, you should still file your return on time. This will save you having to pay late and penalty filing fees. The penalty for not filing your tax return and not paying your taxes is 5% a month. If you file your taxes but do not pay, the penalty is only .5% a month.

What many filers do not realize is that the IRS offers tax payers an option to set up a monthly payment plan to pay off their tax bill. Unless you know you are going to have the money to pay your bill in full in a short period of time, your best option is to file your return on time and fill out the paperwork for an IRS payment plan.

What Else Should I Know?

As you are preparing your return, try not to rush, but to check and recheck to ensure that all of your information is accurate. It is also a good idea to recheck for any deductions you may have missed. Additionally, you may want to review the following check list before you mail or e-file your taxes:

• If you chose to e-file, make sure you keep all related documentation in case you are asked to turn it over to the IRS at a later time.
• If you are mailing your return, do not forget to sign it.
• If you are mailing your return, make copies of everything in case your return gets lost.
• If mailing, you should also consider sending your return certified mail so that you have proof it was received by the IRS.
• If you need to send payment to the IRS, make sure you make the check out for the correct amount, and that you have dated and signed it.
• Finally, whether you e-file or mail your return, triple check everything, especially your social security number before submitting or mailing, and if you filled out a paper return re-check your math.

In conclusion, perhaps the best part of tax season is when you file your return. You can now breathe a sigh of relief that you won’t have to go through this burden again for another entire year.

This guest post was provided by Manny Davis. Manny provides his blog readers with tax tips, news, guidance and more throughout the year. His website also contains detailed guides on helping people that can’t pay their taxes in full thorugh tax payment plans and other tax resolution methods.

Copyright secured by Digiprove © 2011 Mitch Mitchell

When tax time rolls around, a lot of people run for cover. Going on the theory that if they can’t find you they’ll never get your money, you figure that if you simply hide until April 16th everything will be okay. Unfortunately the Internal Revenue Service doesn’t give up that easily. You’re on the books, and the books say you owe them money. They’re intent on collecting. So, okay, you’ll pay, grumbling and cursing all the way to the mailbox. But what if you don’t have the money to pay your taxes on time? The same thing happened last year and you’re still carrying the old tax debt. Since you’ve figured out that the IRS isn’t going to simply go away it’s time to start looking for ways to get out from under the burden of unpaid taxes. How do you do that? What steps can you take to reduce old tax debt?

Contact the IRS

The first thing you should do is contact the Internal Revenue Service and let them know you’re aware of the debt and that you’d like to discuss options on paying it off. Although the IRS can be forceful and seemingly intolerant of you for not paying on time, they are likely to be less so if you approach them before it becomes necessary for them to take punitive action. Once the lines of communication are open there are basically four ways to approach alleviating old tax debt.

The first is an installment plan. This is probably the easiest plan, and the one the IRS would normally choose because it means you will be paying off the entire debt in a timely manner. The installment plan is simple, and easy to implement. You and the IRS work out an agreement whereby you make monthly payments until the debt is erased. It works like any other payment plan. Interest and penalties are included in the payments, and a payoff date is set. If you continue to make the payments on time the debt will ultimately be paid off. The installment plan is the best way you and the IRS have of working together to solve the problem, so they’ll be more likely to accommodate you with this plan than any of the others.

Get Professional Help

The remaining three methods of reducing old tax debt are a bit more complicated. You may want to seek professional help in the form of an account or tax attorney to help you negotiate with the IRS on the following plans. Remember, the IRS simply wants what is owed. On the other hand, your intention is to eliminate the debt as quickly and painlessly as possible.

1. Partial Payment Installment Plan

This is similar to the installment plan except in certain cases the IRS may be willing to accept less than the amount owed in order to clear the books. Special circumstances could call for a reduction of the debt when they realize they may never collect unless they’re willing to bend a little. Once an amount, less than what’s actually owed, is agreed upon a payment plan is worked out and as with the regular installment plan, if you make your payments in full and on time the debt will eventually be paid off to the satisfaction of the IRS. Then you start over from square one.

2. Offer in Compromise

Comparable to a partial payment installment plan, an offer in compromise will probably contain stiffer penalties and higher payments. You may be required to pay the debt all at once in order to receive a reduction in tax liability. If a payment plan can be worked out it will mean foregoing any tax refund for the current year, your financial information will become a matter of public record, and the IRS gets unlimited access to your entire financial history. If you’re unable to make the payments, you’ll have to pay the entire amount you originally owed, plus interest and penalties. On the upside, if you make all the payments on time and in full, your tax debt will be eliminated and your credit rating will improve.

3. Not Currently Collectible

In the case of someone that is truly not able to pay off or reduce their tax debt, there is a way to have the debt delayed… maybe indefinitely. If you can prove you’re unable to pay at the present time, you can apply for not currently collectible status. This means the IRS agrees to not pursue the debt for a specified period of time in the hopes that you can start making money again and eventually eliminate the debt.

Although the debt doesn’t disappear it may help you get back on your feet again. One advantage of your tax debt being not currently collectible is that there is no actual limit on how long it can remain in effect. However you’ll still be required to keep up to date on current tax payments. In other words, if you owe taxes for 2009 and are considered not currently collectible, you are required to pay your 2010 and 2011 taxes on time. If you don’t, your not currently collectible status could be dropped and you’ll have to go on some sort of payment plan.

There is another, significantly less desirable method of reducing or eliminating old tax debt — bankruptcy. Of course this should be the last option you consider. The lasting ramifications of bankruptcy will follow you for a long, long time. It’s far better to find a way to pay your taxes.

Guest post from Bailey Harris. Bailey writes about home insurance and related topics for www.homeinsurance.org.

Copyright secured by Digiprove © 2011 Mitch Mitchell

Sometimes we fall behind on our taxes; I’ve been there myself, as an independent business owner.

Lately, there is this commercial that’s been running on late night TV, where this company is talking about helping people to solve their tax problems, either totally eliminating their debt or getting them drastically reduced amounts that they owe. In the commercial, though we know these folks are just actors, they talk about having debts as high as $500,000, and how this company will help you out if you just call “this number”.

Here’s the first problem. There is never a company named in the commercial. At first I thought I was just missing it, but “luckily” the same commercial came on 3 more times during the show I was watching. Nope, never mentioned a company name, just gave a phone number. If that’s not a major red flag, I don’t know what is.

Two, you can bet that if someone fell behind in tax payments to the tune of $500,000 that it might be too late to call some company for help in working it down.

Three, the IRS doesn’t negotiate deals that will drastically reduce your payment load. They don’t have to; they’re the federal government. They will find a way to get their money, all of it, or you may end up spending some time in jail. In this commercial, it had one actor saying they had a tax debt of $30,000 and the IRS settled for $1,700. Nope, that’s just not going to happen.

The best thing to do with the IRS is to call the number on the letter, if you get a letter, and work out a payment plan. The people working there are quite accommodating; they don’t want to hurt you. Sure, you need the ability to pay something, but the alternative is for them to garnishee your wages for around 10%, which, if you’re not working, no problems, and if you are, at least you still can life fairly well off that if you know how to budget.

The main point here is to, well, not be stupid. If you don’t know who you’re dealing with, don’t deal with them. And if you do know who you’re dealing with, make sure you know as much about them as you possibly can. Protect yourself always.

Well, it’s all caving in, and there go all those mystery books and movies that have brought this type of thing to our attention.

First, the Swiss Banks have given up the ghost of private and secure bank accounts, as evidenced by the first arrest of someone for tax evasion after reviewing records from Swiss bank USB.

Now, it looks like the sites are on banks in the Virgin Islands, where these types of banks have helped the small nation become a major player in the world finance markets and have helped their country take care of its citizens in ways they probably never could have imagined otherwise.

The prime minister of the Virgin Islands, Ralph O’Neal, stated “it smacks of colonialism when developed nations dictate standards for financial operations, especially when they don’t comply with the rules themselves. Why is it that we now in the colonies, because we are still a colony, can’t have a financial center? If you are doing something and you are saying I can’t do it, are you saying that I am inferior?”

It’s estimated that more than $7 trillion dollars and more than 400,000 corporations, probably dummy corporations, are being protected by banks in the Virgin Islands, and the G20 countries have determined that they want access to all that information so they can track down what they have determined are tax cheats and either arrest them or get money back that they feel they deserve. The G20 countries are also saying that if they don’t get that information, they will impose heavy sanctions on this country, and others like the Philippines, who don’t seem willing to share their information either, until they either capitulate or go bankrupt.

I have to admit that I have mixed feelings on this one. First, I don’t like tax cheats any more than anyone else, and these types of accounts really only favor the rich.

Having said that, I don’t like countries that bully the “little guy” because they don’t conform to what they consider is the norm. I mean, they can go after the Virgin Islands for money, but they can’t do anything about Somalia, where the leaders are basically slaughtering their own people at will? Also, if you read the news story I linked to, you’ll see where a state like Delaware doesn’t have to comply with the rules of the G20 countries, and they’re right here in the United States, although I guess they voluntarily do anyway. When I incorporated my business some years ago, I was asked where I wanted to incorporate, and Delaware was recommended because I could have saved a lot of money on taxes. I decided against it, living in New York, because it didn’t seem quite right. But I wouldn’t look down on anyone else who decided to go that route.

Another thing is that this country has all sorts of tax rules that we don’t like. Major corporations that are now sending many jobs out of this country are doing things that end up getting them tax refunds instead of having to pay taxes. If they get to be lauded for their creativity, why is it that our government feels it has the right to go after others who have found a different way to be creative?

I know, it sounds like a general tax rant, which it probably is as we get closer to tax day, but, once again, all I’m looking for is a little balance and fairness in it all. I’m not saying this isn’t fair, what the G20 countries are trying to do here, but I am saying that it doesn’t look all that fair from where I’m sitting. Your thoughts?

I almost couldn’t believe my eyes when I’d read that federal legislators were working on a plan to recover bonus money spent by AIG to fulfill a contract that they had to honor. I was literally shocked out of my body when I’d read that the House had passed the bill and sent it to the Senate. In essence, what the House had done was craft legislation on a super small minority based on a strong hate and sense of decorum that was totally misplaced to tax these people 90% of that bonus in their attempt to recover it, even with the news that some of these people had decided to give the bonuses back.

Obviously, based on a previous post, I don’t really share the outrage everyone else has, even though I think it was over the line, but this was the scariest thing I’ve ever seen our legislators do in my lifetime. In essence, they proved that they could select a minority, no matter what minority it was, and if they had enough votes they could enact punitive legislation against them without thinking about the consequences. They crossed a very dangerous line, one that someone down the line is going to try to do again at some point now that they’ve proven it can be done.

I went to Twitter to share the story and my shock, expecting to have at least one or two people agree with me. Instead, every response I got seemed to feel just fine with it, saying these people deserved what they got. That shocked me even more; could people really be so short sighted that they couldn’t understand the ramifications of what had occurred?

Has everyone forgotten not only distant history, but some history that’s not so far away? Has everyone forgotten that the rise of Hitler came because he was initially elected into power, and as he grabbed more and more “legal” power he was able to become the violent dictator he was, as Chavez continues to do in Venezuela today? At the same time, how many people have forgotten how outraged most of us were when we learned that former President Bush had allowed illegal wiretaps without getting approval from either Congress or the Justice Department because, in his view, he had special “war” powers that allowed him to do it?

As we let this event from today sink in, has it occurred to anyone else except me that if, one day, the House or Senate decided to punish a state by drafting legislation to levy a federal tax on every citizen of that state 50%, and there isn’t a state with enough representatives of any state in either the House or Senate to prevent it, that they could do it and get away with it, if they could get the President to sign it? Or, if they decided that they wanted to bust up a union in any state, including federal employees, by imposing special taxes against those people? What contract could ever be safe, or, for that matter, what person could ever really be safe, against that kind of abrogation of responsibility? You want to learn what true taxation without representation is?

Thankfully for my sanity, this evening I learned that my wife agreed with me. Then, on the Tonight Show, I learned that not only did Jay Leno also agree with me, but President Obama, in his own way, seemed to indicate that he wouldn’t sign the bill, understanding both Jay’s and my points that, though these legislators are expressing their anger, at a certain point someone has to step up and make the appropriate move and response to what happened.

I hate to say this, but Pandora’s Box was opened a small crack today. Small enough so that only one bad thing escaped, probably the one that hadn’t been eating well. We, the people, are in danger, and I fear it’s only time and the “right” president in office at the time who will one day exploit, for whatever purposes, what happened today.

And they wonder why people don’t trust them; please!

Let’s face this fact; we all hate taxes. Let’s face this other fact; without taxes, there is no government, no services, no roads, no military, etc. So, let’s first agree that taxes in general are a necessity.

However, there are some taxes that seem to be extreme, at least in my mind, that I feel we should either have eliminated, or changed in some fashion, to be more fair and, well, less sneaky. What do I mean?

Let’s first look at estate taxes. An example, fake of course, is my father worked his entire life and built up quite a bit of wealth. Upon his passing, he’s got $20 million in the bank, his estate is worth another $5 million, and he’s been taxes all these years on every single piece of it. I’m the only heir, and I do okay, but nothing close to Dad; doesn’t matter. I inherit said estate and money, and we move on with life. Well, not quite, because the government now says that because it’s now in my name instead of my dad’s name, they have to heap a new tax on me; that doesn’t seem quite fair. It doesn’t matter that the entire estate has already been taxed, they have to tax it all again. Turns out I’m not alone on this one, as Fortune Magazine did a survey of small business owners who came back with 67% agreeing that they hate this tax the most.

Next, let’s look at gift taxes. They at least have modified over the years, but I still don’t like them. Now you can “gift” someone up to $13,000 before they’ll get taxed, which is better than the $9.999 we were allowed back in 2001. Luckily, gifts to spouses don’t count, but your kids will take a hit. What’s interesting here is that if we look back at the estate tax for a moment, if you can get your rich parents to gift you the house and estate up front then all you’ll owe on estate taxes is what the tax base is, but if you inherit it you owe taxes on the worth of the entire estate. How easy do you think it would be to get your parents to gift you their estate while you’re still alive? Oh, there is a limit there also, but it’s $2 million, so the majority of us are safe. Still, I hate the idea of gift taxes anyway. Why shouldn’t anyone be allowed to give whatever gift they wish to someone else? Sure, I understand the concept of money laundering, but does this mean the majority have to suffer because of the criminal intentions of a few?

The final tax I really hate is kind of unwieldy, that being excise taxes. Basically, these are taxes on goods produced within the country and pretty much sold within the country. So, let’s think about this one for a minute. You decide you want to make little clay animal pins. You go to the store and buy the items, which are taxed. You come home and start making the things. You make them (energy is taxed), and then you start selling them. You’re expected to collect sales tax on every single item, no matter if you’re an individual or a large corporation; no matter if you sell them locally or over the internet. And if you don’t, you could be sued by that other state for not collecting those taxes, even if they can’t totally prove how much business you did or didn’t do with someone in that state.

Of course, this is only one small example, but most everyone who produces something or even buys something can think of some way they’re getting touched by excise taxes. This prospect of internet taxes possibly coming at some point is very real, unfortunately, as more and more states are losing money and starting to blame it on internet sales, since, well, you really can pretty much not only find anything on the internet, but at a deal you can’t get at home for whatever reason. I live in New York, after all; most people know what our taxes are like.

Those are my three, but I’m sure you have your pet peeves also. My wife hates that a part of our property taxes goes to schools, as we have no children, whereas I see it as a necessary,… well, I don’t want to call it evil, but I understand. As I said at the beginning, I know taxes are necessary, but some of these seem like pure greed, and purely punitive towards wanting to do certain things with your money that should be your right.

President Obama’s new budget is out, and the taxes portion of it is somewhat interesting. Part of me likes it; part of me wishes there were some other things in it.

What parts do I like? I like that the taxes on the wealthy are going up. Actually, that’s not totally accurate; they’re going back to the levels they used to be at before President Bush got in office.

I like that taxes on the middle class and those below are going down. However, I don’t know that getting an extra $800 a year is enough to really make much of a difference. By the way, the Republicans are saying taxes are going up for everyone; I’m not sure who’s right, since I haven’t read the entire budget, but I’m going to assume what I’ve read on both CNN and MSNBC isn’t lying to me. Anyway, lower taxes are always good, and I know that we can’t lower them too much because, let’s face it, the country needs that money to help fund the budget.

So, we’re going to tax the rich more, rich being defined as being over $250,000; that should prove to be interesting. Truthfully, I’m still shooting for that level on a more consistent basis; if I have it, I’ll share it!

We all know that having our taxes done, even if we’re getting back a refund (I haven’t had a refund in 15 years; I wonder what it’s like) isn’t easy. Sometimes we fall behind; sometimes we get it wrong. I’ve been in business for myself for over seven years, and I finally hired an accountant 3 1/2 years ago to help me keep track of my finances and to do my taxes.

It’s amazing to me that, with the pop some of these politicians and business people have, we had three cabinet choices of President Obama that have run into tax issues. All three of them, Tom Daschle, Nancy Killefer, and Tim Geithner, should have known better, because all of them were on finance committees, or worked in areas that knew all about tax laws, and therefore have on real excuses. Even still, all of us knows that none of those folks did their own taxes. They all have to have accountants and financial advisors helping them handle their finances.

Two of the three names above resigned before being confirmed. The one who’s still on the job, Tim Geithner, faced some tough questions, but got confirmed anyway. He probably has the most important job right now, other than the President, as Secretary of the Treasury. That this guy, who was supposed to be a financial genius, didn’t know that he was supposed to pay taxes on his household help, or that he didn’t hire an accountant who should have told him that, really does reduce his credibility just a bit, if not more, in the eyes of the American public.

Still, the question to ask is if no one who applies for a political office, even if it’s an appointed office, is allowed to make mistakes. Whoopi Goldberg posed this question earlier today on The View, saying she would bet that every single person in Congress has something in their past that could be brought up that would not only embarrass them, but disqualify them from ever making it in politics. Someone else on the show said “it should depend on what they’re called to do”.

I’m not really sure. I will say this; I’m so glad that I never want to hold public office, because I’m not sure I’d want to deal with all the scrutiny. Is there anyone left who’s pure enough to make it in politics? Is politics a place for pure people to begin with? And are taxes really the main issue to look at when it comes to some of our politicians? I wish I knew; what are your thoughts?