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Tax troubles tarnish government reputations

November 25, 2007

Reputation

Remember when your mom told you how important your reputation is? If you screw up, mom warned, it’ll take a long time, if ever, for you to recover your good name.

It seems that mom’s advice, as is usually the case, is dead on. And it applies to governments, too.

That’s what has happened in two recent instances involving mishandled taxes.

D.C. déjà vu: Let’s start in the United States. A couple of weeks ago, some Washington, D.C. tax office employees were charged with using their positions, over seven years, to steal $16 million (maybe more) from the national capital’s coffers. If it doesn’t ring a bell, you can read my earlier item about the case here.

The incident is now conjuring disparaging images of D.C. that officials thought they had long ago put to rest. Specifically, the city is started to be seen again as it was during the tenure of quintessential party (and we ain’t talking political party here) mayor, Marion Barry.

The hubby and I lived in the D.C. area when the flamboyant and combative Barry was in office. Trust me, the picture he painted of that city is not one any municipality wants. This Washington Post story sums up his lowest point.

Now, according to a story in Saturday’s New York Times, the tax office fraud has "tarnished anew" D.C. municipal government’s reputation. Read all about the city’s newly troubled rep here.

Missing British tax data: Meanwhile, Prime Minister Gordon Brown is facing waning public support, in part because of a tax misstep.

The competence of Brown’s five-month-old government is being questioned in the wake of the British tax agency’s loss of computer disks with personal and financial information on about 25 million Britons.

The country’s top tax official has resigned, but no one has an explanation as to what happened to the disks. They disappeared en route, via an internal mail service, to a government audit office. The delivery was not being tracked and it was three weeks before anyone noticed they were missing.

Brown apologized in Parliament last week for the "inconvenience and worries caused to millions of people." It hasn’t, however, done his public perception much good.

Details on Brown’s tax and other troubles can be found in this New York Times story.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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