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Geithner Failed To Pay Self-Employment Taxes

STEVE INSKEEP, Host:

Some other news now. President-elect Barack Obama's choice for Treasury secretary has run into a problem. Tim Geithner failed to pay more than $40,000 in taxes over a four-year period. This is the guy who's nominated to oversee the Treasury. He's repaid the money, but the misstep has delayed his confirmation hearing, as NPR's John Ydstie reports.

JOHN YDSTIE: For instance, he owed Social Security taxes to the U.S. government. He did forward the employee portion to the IRS, but he did not send the portion of the Social Security tax normally paid by the employer, as he was supposed to do. The IRS audited Geithner for tax years 2003 and 2004 and required him to pay additional taxes and penalties, but Geithner did not amend his 2001 and 2002 tax returns until Obama transition officials discovered the problem. Geithner quickly paid the nearly $26,000 he owed. Republican Orrin Hatch of Utah, who serves on the Finance Committee, said the issue should not jeopardize Geithner's confirmation. John Ydstie, NPR News, Washington. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

John Ydstie has covered the economy, Wall Street, and the Federal Reserve at NPR for nearly three decades. Over the years, NPR has also employed Ydstie's reporting skills to cover major stories like the aftermath of Sept. 11, Hurricane Katrina, the Jack Abramoff lobbying scandal, and the implementation of the Affordable Care Act. He was a lead reporter in NPR's coverage of the global financial crisis and the Great Recession, as well as the network's coverage of President Trump's economic policies. Ydstie has also been a guest host on the NPR news programs Morning Edition, All Things Considered, and Weekend Edition. Ydstie stepped back from full-time reporting in late 2018, but plans to continue to contribute to NPR through part-time assignments and work on special projects.