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Wednesday, April 1, 2009

Another Tax Cheat In The Obama Cabinet?

As reported by The Washington Post, Health and Human Services nominee Kathleen Sebelius recently corrected three years of tax returns and paid more than $7,000 in back taxes after finding "unintentional errors" _ the latest tax troubles for an Obama administration nominee. The Kansas governor explained the changes to senators in a letter dated Tuesday that the administration released. She said they involved charitable contributions, the sale of a home and business expenses.

Sebelius said she filed the amended returns as soon as the errors were discovered by an accountant she hired to scrub her taxes in preparation for her confirmation hearings. She and her husband, Gary, a federal magistrate judge in Kansas, paid a total of $7,040 in back taxes and $878 in interest to amend returns from 2005-2007.

There was no comment from the White House. More HERE

AAPP: There was no comment from the White House? Let's see, as reported by Associated Press writer Ricardo Alonso-Zaldivar contributed to this report, in her letter to Baucus and Grassley, Sebelius wrote that the accountant discovered these errors:

_Charitable contributions over $250 are supposed to include an acknowledgment letter from the charity in order for a deduction to be taken. Out of 49 charitable contributions made, three letters couldn't be found.

_Sebelius and her husband took deductions for mortgage interest that they weren't entitled to. The couple sold their home in 2006 for less than what they owed on the mortgage. They continued to make payments on the mortgage, including interest. But since they no longer owned the home they weren't entitled to take deductions for the interest. The same thing happened with a home improvement loan. Sebelius said they "mistakenly believed" the payments were still deductible.

_Insufficient documentation was found for some business expense deductions.

Sounds like this couple was trying to "get over" to me.

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