Key Bush Appointment Held Up By Dubious Tax Returns

by Leroy Baker, Tax-News.com, New York

26 May 2006

The appointment of R. David Paulison to the position of director of the Federal Emergency Management Agency has been delayed by the revelation that there are question marks surrounding deductions on some of his previous tax returns.

According to an Associated Press report, at issue are Paulison's tax returns from 2003 to 2005, on which he claimed deductions for potentially questionable "living expenses".

Due to confidentiality rules, it is not known at present how much the deductions, claimed by Collins as travel expenses, were worth.

According to FEMA spokesman Aaron Walker, Paulison is due to file amended tax returns and pay back any money owed. The returns were supposedly prepared by a private accountant, who apparently gave Paulison bad advice.

"We want to be as transparent on this as possible," Mr. Walker stated.

"We want to work with the committee to make sure this doesn't hinder his nomination in any fashion," he added.

Despite the hitch, Senators on the Homeland Security and Governmental Affairs Committee considering Paulison's nomination did not think that it would ultimately prevent Paulison from stepping up from acting director of FEMA.

"We need more information at this point," Committee Chairwoman Susan Collins (R., Maine) stated, although she went on to add that: "I think it's important that we get him confirmed as soon as possible."

However, Joseph Lieberman, the ranking Democrat on the committee, stated that the Senators would likely "err on the side of caution".

Nonetheless, lawmakers will be keen to secure Paulison's post before the hurricane season starts next week.

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