Originally Posted by dynalow

Not really spin, just an explanation of how the law is written.
But, yes, he was informed of the proper tax treatment and still mishandled it. I don't know if it ever came out if he prepared his own returns or had an accountant prepare it. At least he could claim the "Oops" defense. The " I didn't look it over before I filed it" excuse! Blame my accountant.

But if he did,as you relate, pay extra income (taxes) to cover the expected taxes", it seems like he was acting in good faith originally and later, when he prepared it, he goofed up.

As a CPA, I don't think it's a big deal. I don't have a problem giving him a pass on this. And I'm not exactly what you would call a Democratic Supporter.