Rangel Admits Owing IRS $5,000

So, Rep. Charles Rangel (D-NY) now says that he owes the IRS $5,000 in back taxes after failing to report investment income from his Punta Cana villa. Gee, thanks alot Rep. Charles Rangel. I do believe your attorney had claimed that you wouldn't need to pay any back taxes, interest, and fees. Guess he was wrong too.

He's still going to owe New York State money in back taxes, interest, and fees, but the more salient question is what should Congress do about Rangel. He says that his failure to pay taxes shouldn't affect his career. In fact, he strains credulity by claiming that "cultural and language barriers" prevented him from paying taxes.

At the press conference, Mr. Rangel also said that he had asked the House ethics committee to investigate the matter- the third separate inquiry Mr. Rangel has requested since his personal finances began coming under intense pubilc scrutiny in July.

He called his failure to report the income on his taxes “irresponsible,” but also said, “I personally feel I have done nothing morally wrong,” he said.

He said his accountants were still calculating the total amount he owes in unpaid taxes over the past five years, but it is unlikely to exceed $5,000 to the IRS, and another $5,000 to New York state and New York city.

Nonsense. He is the Chairman of the committee that helps set the nation's tax policy. He should have known better and if he can't pay attention and follow the laws that his committee writes, then he has no business leading that Committee. I don't expect his constituents to dump him anytime soon, even though they have more than sufficient grounds to do so after the rent stabilization apartment scandal and now the tax business.

Ignorance is no excuse for the law. Claiming that you have language and cultural barriers is not an excuse. Rangel should know better, since he's been working on the Tax Code for decades. The penalties and procedures for paying taxes are spelled out in plain English.

Negligence or disregard. The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Negligence also includes failure to keep adequate books and records. You will not have to pay a negligence penalty if you have a reasonable basis for a position you took.

The term “disregard” includes any careless, reckless, or intentional disregard.

Adequate disclosure. You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. See Disclosure statement , later.

This exception will not apply to an item that is attributable to a tax shelter. In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly.

Rangel doesn't have a reasonable basis for the position. And given that Congress is considering changes to the penalty provisions, you would think that Rangel would know what is going on.

UPDATE:
If the Times hadn't called Rangel out on this, he would never have paid the IRS and NYS the proper amounts. To be clear, he's claiming that he wasn't able to understand the employees at the Punta Cana resort when calling about the necessary tax records. Interesting. His constituents include quite a few people from the Dominican Republic.

UPDATE:
Rangel says he has no intention of stepping down. That figures. He knows that Pelosi and the Democrats have his back (for now), and his constituents will reelect him handily.

UPDATE:
Michelle Malkin links. Thanks!