Political Hotsheet
March 31, 2009 6:17 PM

Another Obama Nominee Has Tax Issues

(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.”
Tags:
Kathleen Sebelius ,
taxes ,
tax ,
obama. hhs
Topics:
Cabinet
Add a Comment See all 58 Comments
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?
=====
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.
Reply to this comment
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.
Reply to this comment
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
Reply to this comment
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.
Reply to this comment
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.
Reply to this comment
by grabandgo April 1, 2009 8:56 AM EDT
I guess being a tax cheat is ok if you work for bomama
Reply to this comment
by msmabuse April 1, 2009 8:42 AM EDT
rickwar98

Its ok buddy, you will come up with a good excuse soon.
My advise is to only put one fact at a time so it does not look too pathetic!
Reply to this comment
by msmabuse April 1, 2009 8:38 AM EDT
The left can do no wrong, its all in finding the right excuse!
Hang in there lefters you will hit on it soon.
Reply to this comment
by theystink April 1, 2009 8:31 AM EDT
I live in Kansas and please, please don't send Sebelius back to Kansas. She belongs in Washington with the rest of the tax cheats. If the Dems would have only paid all of their taxes the country would be out of debt.
Reply to this comment
by impeachbhb April 1, 2009 8:28 AM EDT
We need to bring an end to tax evasion by politicians. The IRS needs to audit the past 3 years tax returns for everyone working in Obama's administration and every Democratic and Republican Representative and Senator.
Reply to this comment
by hunterdon6 April 1, 2009 8:24 AM EDT
A corrupt president hiring a corrupt cabinet. Democrats as usual.
Reply to this comment
by dhutch88 April 1, 2009 8:15 AM EDT
So if you think it's so easy how about having us look at your tax returns right wingers?
Posted by rickwar98 at 4:48 AM : Apr 1, 2009
+ report abuse + permalink

Ignorance is no excuse. Sorry
Reply to this comment
by rickwar98 April 1, 2009 7:48 AM EDT
couple of minor facts easily forgotten by the "Drive by right wing bloggers"

"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."

With everything going on a smart move.

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

Nobody here has ever misplaced or lost documentation?

"she mistakenly paid off a home loan that included deductable mortgage interest. "

Thay would work in her favor.

Consider this from the IRS:

Nearly 10,000,000 minor corrections are made by the IRS each year to tax returns

Nearly 20% of paper returns contain errors each year

Nearly 8,000, 000 WRONG answers are given out by the IRS each year.

About 50% of tax returns contain errors either minor or major.

In a recent survey of tax questions fully 46% of CPA's gave the wrong answer.

Iown 3 businesses, have an MBA, do our corporate taxes (have for years) am certified tax preparer with our state with educational requirements each year. When I'm done I have a local CPA look over the taxes, there are always adjustments and even after that we've had minor adjustments and some questions over the years with the IRS.

So if you think it's so easy how about having us look at your tax returns right wingers?
Reply to this comment
by sleepyric April 1, 2009 7:40 AM EDT
if we had a simple, fair, tax code instead of the volumes we have now filled with loop holes for the rich - everyone would know how much tax they need to pay. As far as nominees for public office, the rule should be audit before nominating, duh.....
Reply to this comment
by mariannpepit April 1, 2009 7:32 AM EDT
longtree: Let me advise you that Obama is not black, he is mulatto. Read your history book. Secondly, the people that were so anxious to vote him in office should be kicking themselves because they thought his word was golden. Well, what a surprise they got. His administration is a joke. That's what happens when you vote someone in office that lacks the experience to run this country and the knowledge to choose the right people for the job. I didn't vote for Obama and have no regrets. His going to Europe is a vacation trip but meeting world leaders is just a fake to throw people off track. The majority of the college students were partly responsible for voting him in office because they didn't have the brains to sit on or a window to throw them out of. This country is in one big mess and he will never be able to balance the deficit. He better call Bill Clinton for advice.
Reply to this comment
by perceptions5 April 1, 2009 7:29 AM EDT
And you notice how the liberal fascists that "generate" our stories for us everyday don't have time to mention that this TAX CHEAT is a DEMOCRAT

.........But you can be darn sure that if she was a Bush nominee the word "Republican" would be printed several times.

Welcome to NAZI America.................
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