March 31, 2009 6:17 PM

Another Obama Nominee Has Tax Issues

By
Brian Montopoli
Topics
White House
(CBS)
Kathleen Sebelius, President Obama's nominee to become Health and Human Services secretary, said in a letter obtained by the Associated Press that she made "unintentional errors" on her taxes and has corrected her returns from three different years.

In the letter, which was sent to senators and dated today, Sebelius wrote that she had made changes related to charitable contributions, business expenses and the sale of a home, according to the AP.

The wire service reports that she and her husband paid just over $7,000 in back taxes, along with $878 in interest, for the years 2005-2007.

Tom Daschle, the president's first HHS nominee, previously withdrew from consideration over tax issues, as did chief performance officer nominee Nancy Killefer.

Treasury Secretary Timothy Geithner, US Trade Representative Ron Kirk and Labor Secretary Hilda Solis, meanwhile, were confirmed despite issues related to their taxes.

UPDATE, 6:37 PM: CBS News has obtained Sebelius' letter to the Senate Finance Committee. She writes in it that she and her husband hired a Certified Public Accountant to review their returns after her nomination and that the CPA uncovered the errors, after which they amended their returns.

On the charitable contributions front, she writes that she could not locate three acknowledgment letters out of her 49 charitable contributions in excess of $250, and thus eliminated those three deductions.

She also writes that she had "insufficient documentation" for some of her tax dedications for business expenses, though because of the Alternative Minimum Tax they did not affect the amount owed. She also said she mistakenly paid off a home loan that included deductable mortgage interest.

Senator Max Baucus, who chairs the Finance Committee, released a letter backing Sebelius almost immediately after the tax issues came out.

"There is absolutely no doubt in my mind that Governor Sebelius has the political experience, determination, and bipartisan work ethic to get the job done with Congress this year," he said. "She's the right person for the job and I look forward to hearing from her at the Finance Committee's hearing on Thursday."

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by mkbljp April 2, 2009 8:19 AM EDT
Ivas12 said:give me a break. Making errors on your tax return does not = tax cheat. I would think 80% of us that do our own taxes - if we we're audited by IRS or a CPA that some errors would be found. does that mean we are tax cheats?
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her husband is a judge. she is the governor of KS and was the insurance commissioner of KS before running for governor. These people hire other people to do their taxes AND those they hire know how far to push the line before it is considered tax evasion. As with all of the other tax evaders obama is picking, sebelius knew and knows. This is reality.

what riles me is if John McCain had won and came up against these issues the media would be all over him like white on rice. Hmmm perhaps the media needs to be audited.
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by mkbljp April 2, 2009 8:14 AM EDT
I live in Kansas. Sebelius has had her nose up obama's butt even before the campaigning was over. Don't tell me for a second that she didn't know she owed back taxes - she did. It is quite obvious she was waiting to see which way the wind was blowing.

oh yes, while she had her nose up his butt, she allowed the financial aspects of KS to go down the tube. She has done nothing for the state. her first edict when she was first elected? - to give illegals tuition assistance for college - sounds like a person who really has the health of the state in mind, doesn't it? she is a perfect candidate for obama's band of merry tax evaders.

Hopefully there has to be someone left on the hill that has any integrity and honor and will put a stop to these thugs being able to become obama's czars (henchmen) and cabinet members. Wake up America - light a fire under your representatives and senators. It is not too late.

God Bless America and may she always be free.
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by Jim50-1 April 1, 2009 4:11 PM EDT
Let's kill the IRS and just go to the Fair Tax. This would solve these problems for everyone.

http://www.FairTax.org
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by rhs648 April 1, 2009 3:48 PM EDT
Funny, I don`t recall George Walker, or George Herbert Walker having this kind of problem...over, and over, and over.
Posted by davicar2

The democrats would never forgive these tax evaders if they were repiblicans. This is typical of the double standard which exists in America. When the republicans complain, it is sour grapes. When the democrats complain, it is ok.
Reply to this comment
by troy.cagle2 April 1, 2009 12:09 PM EDT
why is this guy always lip kissing women? Better than men I guess but what a lack of dignity here. This guy has no shame. You are supposed to kiss the side of the face Hussain. Think of the children or grand children of these women he is lip kissing? C'mon pres, that's just distasteful... I know you crazy liberals might just get a little turned on by this but it's distasteful. I don't expect you to know what I am talking about so don't bother commenting. I won't be back to see if you replied. How come I don't see people standing up to defend this neosocialist. Don't say I'm a hater because I see this man running our country into the ground as the last president and the one before that were not much better...
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by tomanyt April 1, 2009 9:34 AM EDT
lvas12...These people can afford to hire people who do understand all 18,000 pages of the tax code.
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by tomanyt April 1, 2009 9:33 AM EDT
How many of you have made errors on your taxes? GET A LIFE. Posted by jcnbma1 ... The fact that errors were made is not the problem. The problem is: Why did it take so long for them to correct these errors?
Reply to this comment
by lvas12 April 1, 2009 9:31 AM EDT
give me a break. Making errors on your tax return does not = tax cheat. I would think 80% of us that do our own taxes - if we we're audited by IRS or a CPA that some errors would be found. does that mean we are tax cheats? no it just means we don't understand all the rules in the 18,000 pages of our tax code.
Reply to this comment
by tomanyt April 1, 2009 9:29 AM EDT
I guess being a tax cheat is ok if you work for bomama
Posted by grabandgo...Correction. Its OK to be a tax cheat if you work for any administration.
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by grabandgo April 1, 2009 8:56 AM EDT
I guess being a tax cheat is ok if you work for bomama
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