Death and taxes: Some think the latter isn't certain

A couple of years ago, my husband and I received a letter from the Internal Revenue Service. It said there was a problem with our tax return. We were instructed to telephone a call center.

As it turned out, two numbers of our child's Social Security number were transposed on our income tax form, which raised a red flag with the tax agency. The IRS, understandably, wanted to clarify matters.

Until we understood the nature of the problem, we sweated bullets. No one wants to be on the wrong side of the IRS. Once the agency was satisfied that our error was more boneheaded than malicious, the matter was closed. In fact, all it took was one phone call.

Most Americans take seriously the responsibility to pay their taxes. According to IRS statistics, the overall tax compliance rate is about 85 percent, a figure that hasn't wavered much in decades.

Since so many of us pay our taxes, it's not surprising that 89 percent of Americans say it is "not at all" acceptable to cheat on your taxes, according to a survey by the IRS Oversight Board. Nine percent said they thought it was OK.

Who are these 9 percent? Does the IRS automatically conduct audits on these survey respondents? And how do they rationalize that it's OK to cheat on their taxes?

For that matter, why do people in high-profile positions — who have the means to hire certified public accountants and tax attorneys — can't seem to manage their tax matters?

Tim Geithner, confirmed by the Senate last week as the new Treasury secretary, apparently had $34,000 in overdue taxes. Geithner apologized and called the errors "careless."

Meanwhile, President Barack Obama's nominee for Health and Human Services secretary, Tom Daschle, said Monday that he's "deeply embarrassed and disappointed" that he failed to pay taxes from 2005 to 2007. He owed more than $120,000, which he paid last month. Daschle said he had overlooked taxes on more than $300,000 worth of income he gained through consulting work, including the use of a car and driver.

Just curious, did Geithner, Daschle or their representatives receive one of those dreaded letters from the IRS? Or did they just fail to report the income?

It's difficult for most of us to comprehend since most of us consider $34,000 a lot of money, let alone $120,000. Most of us don't earn $120,000 a year or can conceive of that great of a tax burden.