Tax Problems for Sebelius

Mar 31, 2009 6:55pm

ABC News’ Jon Karl Reports: Here we go again: tax problems for another cabinet nominee. In this case, HHS nominee Kathleen Sebelius has informed the Senate Finance Committee that an audit of her and her husband’s 2005, 2006, 2007 tax returns has revealed some "unintentional errors, which we immediately corrected." As a result, Sebelius and her husband have filed amended returns and paid $7,040 in back taxes and $878 in interest. Unlike the $128,000 dollar mistake that doomed Tom Daschle’s nomination for the same job, Sebelius’s errors appear minor. The tax issues were discovered after she hired certified public account to review her past tax returns. The problems fell into three categories: 1) She could not locate receipts on three charitable contributions (you need receipts for contributions over $250) 2) In July 2006, she sold her house for less than the amount of her mortgage (she was under water back in 2006!). As she kept paying off the loan balance, she improperly took a home mortgage interest deduction. 3) She could not locate receipts for some business expenses she claimed. The problems don’t appear likely to derail her nomination. In fact, shortly after he learned of the problems, Senate Finance Chairman Max Baucus (D-MT) put out a statement strongly supporting her nomination. "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," said Baucus. "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."

You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus