The Rangel Round-Up: Another Nominee and Back-Taxes

Former Dallas Mayor Ron Kirk is the third nominee in the queue for Commerce Secretary.  New Mexico Governor Bill Richardson withdrew his name because of an ongoing investigation into contracts the state awarded to various companies that donated funds to Mr. Richardson’s campaigns.  The second nominee, Senator Judd Gregg, withdrew because he felt he could not be a 100% team player.  But, Mr. Kirk is also the fifth nominee in the Cabinet queue to hit the back-taxes issue. Treasury Secretary Timothy Geithner owed $34,000 in back taxes on consulting income earned from the World Bank.  Labor Secretary Hilda Solis’s husband had $6,400 in tax liens on his business.  Tom Daschle, who withdrew his nomination for secretary of Health & Human Services, owed taxes on his years of limo service.  Nancy Killefer, nominated for chief procurement officer, had a nanny tax problem.

Mr. Kirk had two problems.  The first was his deduction of $17,382 for Dallas Mavericks tickets as entertainment.  He could only show that $7,000 of Mavericks tickets were actually spent entertaining.  The second problem stemmed from Mr. Kirk requesting that his speaking honoraria be sent directly to Austin College, his alma mater.  The $37,750 that went to the college for scholarships was not something Mr. Kirk and his accountant reported to the IRS.  Amending his 2005-2007 returns, Mr. Kirk paid an additional $9,975 in taxes on the honoraria.  Here’s are some simple rules:  If they are paying you, it counts.  If they are paying you, you owe taxes.  If they are paying you, you can’t deflect it off you by transferring to a charity.  Report it, take the charitable deduction, and avoid back taxes.  

About mmjdiary

Professor Marianne Jennings is an emeritus professor of legal and ethical studies from the W.P. Carey School of Business at Arizona State University, retiring in 2011 after 35 years of teaching undergraduate and graduate courses in ethics and the legal environment of business. During her tenure at ASU, she served as director of the Joan and David Lincoln Center for Applied Ethics from 1995-1999. In 2006, she was appointed faculty director for the W.P. Carey Executive MBA Program. She has done consulting work for businesses and professional groups including AICPA, Boeing, Dial Corporation, Edward Jones, Mattel, Motorola, CFA Institute, Southern California Edison, the Institute of Internal Auditors, AIMR, DuPont, AES, Blue Cross Blue Shield, Motorola, Hy-Vee Foods, IBM, Bell Helicopter, Amgen, Raytheon, and VIAD. The sixth edition of her textbook, Case Studies in Business Ethics, was published in February 2011. The ninth edition of her textbook, Business: lts Legal, Ethical and Global Environment was published in January 2011. The 23rd edition of her book, Business Law: Principles and Cases, will be published in January 2013. The tenth edition of her book, Real Estate Law, will also be published in January 2013. Her book, A Business Tale: A Story of Ethics, Choices, Success, and a Very Large Rabbit, a fable about business ethics, was chosen by Library Journal in 2004 as its business book of the year. A Business Tale was also a finalist for two other literary awards for 2004. In 2000 her book on corporate governance was published by the New York Times MBA Pocket Series. Her book on long-term success, Building a Business Through Good Times and Bad: Lessons from Fifteen Companies, Each With a Century of Dividends, was published in October 2002 and has been used by Booz, Allen, Hamilton for its work on business longevity. Her latest book, The Seven Signs of Ethical Collapse was published by St. Martin’s Press in July 2006 and has been a finalist for two book awards. Her weekly columns are syndicated around the country, and her work has appeared in the Wall Street Journal, the Chicago Tribune, the New York Times, Washington Post, and the Reader's Digest. A collection of her essays, Nobody Fixes Real Carrot Sticks Anymore, first published in 1994 is still being published. She has been a commentator on business issues on All Things Considered for National Public Radio. She has served on four boards of directors, including Arizona Public Service (1987-2000), Zealous Capital Corporation, and the Center for Children with Chronic Illness and Disability at the University of Minnesota. She was appointed to the board of advisors for the Institute of Nuclear Power Operators in 2004 and served on the board of trustees for Think Arizona, a public policy think tank. She has appeared on CNBC, CBS This Morning, the Today Show, and CBS Evening News. In 2010 she was named one of the Top 100 Thought Leaders in Business Ethics by Trust Across America. Her books have been translated into four different languages. She received the British Emerald award for authoring one of their top 50 articles in management publications, chosen from over 15,000 articles. Personal: Married since 1976 to Terry H. Jennings, Maricopa County Attorney’s Office Deputy County Attorney; five children: Sarah, Sam, and John, and the late Claire and Hannah Jennings.
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