Pat Dollard

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Politico:

Former Senate Majority Leader Tom Daschle paid $100,000 in back taxes after failing to report his use of a limo and driver to the IRS – throwing a stumbling block into his nomination as Barack Obama’s health and human services secretary.

Daschle used a Cadillac and driver while as a consultant to a New York City private equity firm, InterMedia Advisors, and did not report the service on his income tax.

News of Daschle’s tax delinquency, first reported Friday night by ABC’s Jake Tapper, represents an embarrassing repeat for Obama’s administration, which just won the confirmation of Treasury Secretary Timothy Geithner earlier this week despite his failure to properly pay taxes.

But Obama aides say the president is committed to ensuring Daschle’s confirmation.

“The President has confidence that Senator Daschle is the right person to lead the fight for health care reform,” Obama deputy press secretary Bill Burton told Politico.

In addition Senate Majority Leader Harry Reid said he’s “confident” Daschle’s nomination will go through.

And those familiar with Daschle’s thinking say he will continue to pursue the nomination.

“Yes, he will,” one source close to Daschle told Politico when asked if the former senator would go forward.

But Democrats have called a meeting for 5 p.m. Monday among Senate Finance Committee members to discuss the prospects for Daschle’s nomination.

As part of the nomination process, Daschle and his accountant detected the outstanding taxes and filed an amended return with a payment of $101,943, according to administration officials.

“Senator Daschle brought these issues to the [Senate] Finance Committee’s attention when he submitted his nomination forms and we are confident the Committee is going to schedule a hearing for him very soon and he will be confirmed,” Burton said.

Democratic sources say the car and driver was not Daschle’s but that of Leo Hindery, a Democratic fundraiser and executive who founded InterMedia Advisors. Still, Daschle was required to pay taxes on his use of the service.

One of the president’s closest advisers and somebody once thought to be a potential Chief of Staff, Daschle is in line to not only run HHS but play the leading role in expanding health insurance as director of a newly-fashioned White House Office on Health Reform.

The former Senator endorsed Obama early in the Democratic primary and many of his top staffers and political loyalists assumed key positions in the campaign and now in the administration.

The Senate Finance Committee is set to meet Monday to discuss the matter.

Despite his own tax problems, Geithner cleared the committee and Monday won confirmation, 60-34, before the full Senate.