Trey Grayson does the right thing

Props to Secretary of State Trey Grayson on filing complaints against his opponent on tax evasion. Tax evasion, no matter how you feel politically, is just wrong.

The campaign said it sent letters to seven enforcement agencies, including the U.S. attorney’s office, the Internal Revenue Service, the Warren County Commonwealth’s Attorney’s office and the Kentucky Department of Revenue, claiming that Bowling Green ophthalmologist Rand Paul has not paid withholding taxes on campaign employees.

The campaign first raised the issue last week.[...]

But William P. Malone, a Louisville CPA whose firm has advised both Democratic and Republican campaigns over the years, said it is virtually impossible for a campaign worker involved in day-to-day operations to meet IRS guidelines for an independent contractor.

Basically, the IRS rules say that if the employer has the ability to direct or supervise the work being done, the person hired must be considered an employee — and withholding taxes must be paid.

During 2009, the Paul campaign paid more than $75,000 in wages to five employees but nothing in withholding taxes.

The Grayson campaign said it has paid more than $30,000 in federal withholding taxes since the campaign began.