WASHINGTON — Though he was a prodigy in the world of economics, Timothy F. Geithner underwent an IRS audit in 2006 and ended up paying back taxes for a mistake in two years' worth of filings. That was embarrassing enough.
But just as he was about to be named to head the Treasury Department, a more awkward fact came to light: Geithner had made the same error in two earlier tax years and failed to fix it even after the audit.
Now the matter is complicating Geithner's confirmation process as senators wrestle with its meaning. Was it an honest mistake, as Geithner's supporters maintain? Or does it reveal a character flaw in the man President-elect Barack Obama chose to help solve the nation's economic problems?
Already, Geithner's confirmation hearing has been set back a few days, foiling Democrats' plans to have Obama's most important Cabinet officials installed on Inauguration Day.
Some of the Senate's most prominent members, GOP leaders among them, still support Geithner and blame his accountant for the whole mess. Geithner himself has told senators he can't explain why he didn't pay all his back taxes after the audit.
But pressure could mount if Geithner's explanation doesn't ring true for critics, a handful of whom aren't satisfied with the story coming out of Obama's transition team about how the error happened -- or how it went unresolved until shortly before Geithner was gearing up for a Senate confirmation.
"A lot of us are concerned that the guy who's going to be overseeing our tax system ignored our tax system," said Sen. Jim DeMint (R-S.C.). Based on what he knows now, DeMint said, he would vote against Geithner.
The hearings may well be transformed from a big-picture discussion of the crisis-ridden U.S. economy into a minute review of Geithner's personal finances. Geithner also faces questions about an immigrant household employee whose work papers expired while working for him.
But Geithner doesn't just have to convince skeptical senators, according to some members.
"It is incumbent on him to explain the details in a way that the American public can understand," said Sen. George V. Voinovich (R-Ohio). "He's going to have to have a very good explanation."
After Obama named Geithner to the position in late November, the 47-year-old head of the Federal Reserve Bank of New York appeared to be headed for easy confirmation. A key player in the Bush administration's response to the economic crisis, Geithner commands wide respect among conservatives. The Dow Jones industrial average rocketed 494 points on news of his possible appointment.
