The Geithner effect

A couple of weeks one of my clients called in to cancel her annual tax appointment. She is a senior citizen (and a 15 year client) who always gets a little agitated because she usually owes about $100 - $200 a year on her federal return (that's her total liability).

Her - Gordon, I'm canceling my appointment this year.

Me - Mrs. Smith did you want to drop off or reschedule?

Her - No. I'm not doing a return this year.

Me - Mrs. Smith, you may not have to file depending on what your investments did last year. Wouldn't you like to know if you would owe any money?

Her - That's OK because I'm not going to file and I don't want to know if I owe because I'm not paying anyway.

Me - My only concern is that if you had a stock sale, I just want to make sure that your covered on any liability.

Her - I appreciate the offer but frankly I really don't want to know if I owe because I'm not paying the government anymore money. Frankly, if these a&*holes are willing to give that Geithner guy a job for evading taxes, I dare them to throw me in jail for mine....

Me - That's OK by me, call me if you need me.

I had no idea at the time that I was witness to the Geithner effect.

What is that you ask? From taxprof............

The IRS Oversight Board today released the results of its 2009 Taxpayer Attitude Survey of 1,000 respondents. This is the eighth year the board has conducted the survey.

Perhaps not surprisingly in light of the well publicized tax transgressions of Treasury Secretary Timothy Geithner and other Obama Administration officials and nominees, this year's survey revealed:

• How much, if any, do you think is an acceptable amount to cheat on your income taxes? A little here and there, 9% (highest in 6 years)
• How important is it to you, as a taxpayer, that the IRS does each of the following to ensure that all taxpayers honestly pay what they owe -- Ensures high-income taxpayers are reporting and paying their taxes honestly? Very important, 83% (all-time high)
• How important is it to you, as a taxpayer, that the IRS does each of the following to ensure that all taxpayers honestly pay what they owe -- Ensures small businesses are reporting and paying their taxes honestly? Very important, 76% (all-time high)
• How much influence does each of the following factors have on whether you report and pay your taxes honestly -- Fear of an audit? Great deal of influence, 39% (all-time high)
• How much influence does each of the following factors have on whether you report and pay your taxes honestly -- Belief that your neighbors are reporting and paying honestly? Great deal of influence, 17% (all-time low)