BEHIND THE MONEY: TurboTax-Maker Intuit Takes Hit on Geithner Admission
Shares of Inuit fell to their low on the day on strong volume after Treasury Secretary nominee Timothy Geithner reluctantly admitted during testimony before the Senate Finance Committee that he used the company's TurboTax software to prepare his returns.
Here was the interaction between Geithner and Sen. Chuck Grassley:
Sen. Grassley: Did you use software to prepare your 2001 and 2002 tax returns?
Geithner: I did
Sen. Grassley: You Didn't?
Geithner: No, I did
Sen.Grassley: Which brand did you use?
Geithner: I'll answer that question, but I will say these are my responsibilities, not the tax software's responsibilities, but I used TurboTax to prepare my returns.
The chamber crowd laughed out loud to Geithner's response, but it was no laughing matter for Intuit. The Treasury nominee admitted to making "careless mistakes" when preparing his tax return, apparently using the software. Geithner failed to pay $34,000 in Social Security and Medicare taxes earlier in 2001 and 2002.
Intuit shares have since rebounded off their lows, proving that any press may indeed be good press for the company.
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