Opens in a new tab

Tax troubles end Daschle, Killefer hopes

February 3, 2009

To paraphrase Casey Stengel, "Can't anyone here get their tax returns right?"

The apparent answer is a big, fat "no." And that inability has ended the Cabinet hopes of two Obama appointees.

Tom Daschle has withdrawn his nomination to head the Department of Health and Human Services. The decision came as both lawmakers and the public continued to question how he neglected to claim all his income, including the value of a chauffeur-driven car, on his returns. There also were some improper charitable tax deductions involved.

Although Daschle, a former Democratic Senator from South Dakota, made good on his tax bill, albeit much after the original transgression, the baggage was just too much.

But even before Dashcle withdrew his name, a previous Obama appointee also dropped out.

Perfomance officer out, too: Nancy Killefer had been tapped as the nation's first Chief Performance Officer. Her job would have been to make sure government offices operated as efficiently as possible.

As I blogged when the Killefer announcement was made, she brought with her IRS skills and a nanny tax past. 

Because of her failure to pay the tax for household help back in 2005, Killefer had a lien placed on her house by the D.C. government. She took care of the tax bill back then, but it made news again when her appointment was announced.

Even with that tax oversight, Killefer got high praise from former tax staff and IRS employees with whom she had worked.

Today, however, Killefer issued a two-paragraph letter indicating that controversy over the tax troubles of Daschle and new Treasury Secretary Timothy Geithner persuaded her to decline the Obama appointment.

As for Geithner, he had the luxury of having his dirty tax laundry aired first. That, along with the fact (mentioned in this blog item) that the economic situation demanded the Treasury post be filled fast, worked in his favor.

So where do we go? All of these situations bring us back to Casey's question and it's followups.

The Obama appointee tax troubles are just the latest to roil Capitol Hill. Such instances have cropped up in several administrations.

Should such tax failures, even if corrected, either well before the appointment or soon after it's made, automatically disqualify a person from serving in the government?

And if so many otherwise wel qualified people have such issues, will we ever be able to find enough "clean" folks who have the knowledge and skills to fill the jobs?

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Getting ready for the year-end tax countdown

October 17, 2026

Just 2½ months left in 2026. Time to start making tax plans and moves to…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • What’s with these people and their “nannies?” If you need the “help” then pay them and file your taxes appropriately.
    However, do you think these tax transgressions should cost them these appointments? Well, maybe the efficiency expert since mishandling your taxes seems awfully… inefficient.

Leave your comment