Tax problems haunt HHS nominee Sebelius

WASHINGTON, April 1 (UPI) -- Health and Human Services secretary nominee Gov. Kathleen Sebelius paid more than $7,800 in back taxes and interest from unintended errors, documents show.

The White House released a letter Sebelius sent to the U.S. Senate Finance Committee in which she explained how she lacked proper paperwork to document some charitable donations and business expenses, Politico reported Wednesday. The Kansas governor also mistakenly claimed a mortgage interest deduction on a house she had sold, the letter indicated.

Sebelius was nominated for the post after U.S. President Barack Obama's first choice, former Sen. Tom Daschle, withdrew from consideration after failing to pay more than $100,000 in income taxes on free limo rides provided by a friend and Democratic donor.

Senate Finance Committee Chairman Max Baucus, D-Mont., and the committee's ranking Republican, Chuck Grassley of Iowa, said in a letter to Sebelius, "no additional items were identified that needed to be addressed as a result of our review," apparently indicating she had a clean bill of health otherwise, the Washington publication said.

Details about Sebelius's taxes questions arose after she testified before the Senate Health, Education, Labor and Pensions Committee, which hears testimony from the HHS nominee but doesn't vote on moving the nomination to the full Senate. That action rests with the Finance Committee.

Sebelius said she paid $7,040 in additional taxes and $878 in interest.