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Hilda Solis, Labor nominee, faces tax questions

A Senate committee's vote on her confirmation is delayed after it learns her husband had $6,400 in unresolved tax liens filed against his business.

February 06, 2009|Peter Nicholas and Dan Weikel

WASHINGTON AND LOS ANGELES — U.S. Rep. Hilda L. Solis, President Obama's choice for Labor secretary, faced new obstacles after lawmakers who were expected to vote on her confirmation Thursday abruptly canceled the hearing amid reports of back taxes owed by her husband.

Solis, a Democrat from El Monte, is at least the fourth Obama nominee whose confirmation has been complicated by tax troubles.


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The Obama administration conceded it had not discovered on its own that California tax liens had been filed against Solis' husband, Sam H. Sayyad. The White House learned about the liens -- a matter of public record -- on Tuesday in the form of questions from USA Today, according to an administration aide.

After the newspaper informed the Senate Health, Education, Labor and Pensions Committee of the tax liens, the panel called off the hearing so members could review the information. A new hearing was not immediately scheduled.

"It doesn't make [the administration's] vetting operation look too slick," said Sheila Krumholz, executive director of the Center for Responsive Politics, a watchdog group. "Hard-working Americans who pay their taxes do get upset about these hang-ups. I think that the reaction here will probably be: 'Not another one.' "

Public records show that since 1993, two state and 14 Los Angeles County tax liens totaling about $11,640 have been lodged against Sayyad and his business, Sam's Foreign and Domestic Auto Center.

The documents indicate that $6,468 in county liens remained unresolved until Wednesday, when Sayyad paid off the balance, according to the Los Angeles County treasurer and tax collector's office.

A tax lien is a legal claim filed by federal, state or local governments to collect unpaid taxes and fees from individuals and businesses. Anthony Yakimowich, chief deputy treasurer and tax collector for Los Angeles County, said Thursday that Sayyad "has paid everything he owes us."

Yakimowich said liens are not necessarily an indication that a business or an individual is trying to avoid paying taxes. Businesses can run into financial difficulties, and honest disputes can arise, he said.

Democrats in control of the labor committee said they are confident Solis will be confirmed.

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