P. M. BRIEFING : Bush Makes Mistake on Taxes, Owes IRS an Additional $7,497
President Bush made a mistake in reporting his income to the IRS this year and ended up owing an additional $7,497. He sent the IRS a check for that amount, his press secretary said today.
The oversight involved deferred compensation income from a former job that he was entitled to collect when he reached age 65, according to the amended form he filed. He turned 65 June 12.
He was entitled to the compensation under an arrangement with Zapata Corp., the now-defunct oil firm he once headed, according to the explanation his tax preparers submitted. The income was brought to the attention of the tax preparers after they had submitted his tax return last month, the amended form said.
The deferred compensation was received last year in the form of a paid-up life insurance policy, instead of cash, but it should have been reported because it had cash value of about $26,250.
The President is paying interest of $40.77 that has accrued on the unpaid tax for 15 days since the income tax filing deadline, said his press secretary, Marlin Fitzwater.
There was no penalty, Fitzwater said, because the mistake was deemed to be due to “reasonable cause.”
With the mistake corrected, Bush paid total taxes of $108,879 on income of $483,030.