Kansas Gov. Sebelius Becomes Sixth Obama Nominee To Face Tax Issues

April 1, 2009 7:29 a.m. EST

Washington, D.C. (AHN) - Kansas Gov. Kathleen Sebelius, who testified before Congress on Tuesday on her nomination for Health secretary, has paid nearly $8,000 in back taxes after discovering "unintentional errors" in her tax returns. Sebelius is the second nominee for the Cabinet post; former Senate Majority Leader Tom Daschle previously withdrew from consideration due to tax issues.

Sen. Max Baucus (D-MT), chair of the Senate Finance Committee, said in a statement on Wednesday that Sebelius had informed him in a letter the same day that "minor, unintentional errors" were discovered by an accountant reviewing her 2005, 2006 and 2007 returns. These errors were "immediately corrected through amended returns."

Baucus, whose committee has jurisdiction over Medicare, Medicaid, SCHIP and other health entitlement programs, did not reveal details of the letter. According to Bloomberg, the governor paid $7,040 in back taxes and $878 in interest for errors that included the absence of acknowledgment letters for three of the 49 charitable donations she made.

The letter was sent the same day Sebelius testified before the Senate Committee on Health, Education, Labor, and Pensions in her first confirmation hearing. She testifies in a second hearing on Thursday, before Baucus' panel.

The 60-year-old Sebelius was nominated by President Barack Obama early March, a month after Daschle pulled out for failing to pay $128,000 in taxes.

Daschle had failed to pay for taxes on a car and driver provided to him by Leo Hindery Jr., a Democrat who founded the equity firm InterMedia Advisors. He paid back taxes worth $140,000 on Jan. 2, a week before his confirmation hearing before the he Senate Health, Education, Labor and Pensions Committee.

Four other nominees of President Barack Obama have faced tax issues, but only one has withdrawn their nomination.

Nancy Killefer pulled out herself from consideration for the newly created post of chief performance officer in February. Treasury Sec. Tim Geithner had to overcome controversy and Republican opposition about back taxes before he was confirmed. Labor Sec. Hilda Solis and U.S. Trade Representative Ron Kirk also had tax problems, but these were minor issues that did not greatly affect their confirmation.

Baucus, in his Wednesday statement, made clear his support for Sebelius.

"Congress is going to need a strong partner at the Department of Health and Human Services to achieve comprehensive health reform this year, and we have that partner in Governor Sebelius," he said. "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. She's the right person for the job and I look forward to hearing from her at the Finance Committee's hearing on Thursday."