President-elect Barack Obama's choice to run the Treasury Department and lead the nation's economic rescue failed to pay $34,000 in taxes from 2001 to 2004, but the last-minute disclosure didn't stop Senate Democrats from moving forward with his nomination. Timothy Geithner had paid some of the back taxes in 2006 after the IRS sent him a bill. When the Obama transition team discovered he owed even more back taxes, Geithner paid those additional taxes days before Obama announced his choice in November, according to materials released by the Senate Finance Committee considering his nomination.
Obama's staff told senators about the tax issues on Dec. 5. Finance Committee Chairman Max Baucus, D-Mont. , said he still hoped Geithner could be confirmed on Inauguration Day, asking senators for unanimous consent to skirt rules and schedule a hearing as early as Friday.
"These errors were not intentional; they were honest mistakes," Baucus said after he and other committee members met with ... more.
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