Archive for the ‘Nominee’ Category

Ooops: Another Obama Nominee May Be in Tax Trouble

February 5, 2009

A Senate committee delayed its confirmation vote for Labor Secretary-designate Hilda Solis Thursday in order to review a potential tax controversy relating to Solis’s husband, two sources familiar with her confirmation said.

CNN, Bloomberg and the Washington Post all filed reports.

The Washington post said the comittee “abruptly canceled” its meeting.

USA Today said Sam Sayyad paid $6,400 to settle tax liens against his business that were outstanding for up to 16 years.

“Members on both sides of the aisle remain committed to giving her nomination the fair and thorough consideration that she deserves. We will continue to work together to move this nomination forward as soon as possible,” Massachusetts Sen. Ted Kennedy, chairman of the Senate Health, Education, Labor and Pensions Committee, said in a joint written statement with Wyoming Sen. Mike Enzi, R-Wyoming, the committee’s ranking Republican.

The issue was discussed at today’s White House news briefing with spokesman Robert Gibbs.  Gibbs said that the matter was between Hilda Solis’ husband and the IRS and “everyone expects she’ll still be confirmed.”

The White House said the tax returns of its nominee to be Labor Secretary, Hilda Solis, are in order, adding that she shouldn’t be tarred by the tax issues of a business run by her husband.

Washington Post:

Rep. Hilda Solis testifies at a Senate Health, Education, Labor and Pensions Committee hearing on her nomination to be secretary of labor in early January. (Mannie Garcia/Bloomberg News)



Obama’s HHS Secretary Nominee Daschle Faces Tax Questions

January 31, 2009

ABC News has learned that the nomination of former Senator Majority Leader Tom Daschle, D-S.D., to be President Obama’s secretary of health and human services has hit a traffic snarl on its way through the Senate Finance Committee.

By Jake Tapper
ABC News

The controversy deals with a car and driver lent to Daschle by a wealthy Democratic friend — a chauffeur service the former senator used for years without declaring it on his taxes.

It remains an open question as to whether this is a “speed bump,” as a Democratic Senate ally of Daschle put it, or something more damaging.

After being defeated in his 2004 re-election campaign to the Senate, Daschle in 2005 became a consultant and chairman of the executive advisory board at InterMedia Advisors.

Based in New York City, InterMedia Advisors is a private equity firm founded in part by longtime Daschle friend and Democratic fundraiser Leo Hindery, the former president of the YES network (the New York Yankees’ and New Jersey Devils’ cable television channel).

That same year he began his professional relationship with InterMedia, Daschle began using the services of Hindery’s car and driver.

Thomas A. Daschle was picked to head Health and Human Services.

Thomas A. Daschle was picked to head Health and Human Services. (By Mark Wilson — Getty Images)

The Cadillac and driver were never part of Daschle’s official compensation package at InterMedia, but Mr. Daschle — who as Senate majority leader enjoyed the use of a car and driver at taxpayer expense — didn’t declare their services on his income taxes, as tax laws require.

During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying $101,943 in back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007.

(Daschle reimbursed the IRS $31,462 in taxes and interest for tax year 2005; $35,546 for 2006; and $34,935 for 2007, a Daschle spokesperson said, adding that Daschle had asked his accountant to look into the tax implications of the car and driver five months before Obama won the presidency.)

The Daschle spokesperson told ABC News that the senator, facing questions from the committee, has said “he deeply regretted his mistake. When he realized it was a mistake he corrected it rapidly.”

Read the rest:

The Washington Post said:

Daschle, a former Senate majority leader, and his accountant discovered the error regarding the luxury car service and reported it to the committee after his vetting was completed.

According to the Senate committee, Daschle used the car 80 percent of the time for personal purposes. That service was worth more than $255,000 in unreported income, according to the committee report.

Related at CNN: