The White House said Obama had accepted Killefer's decision and that the 55-year-old executive with consulting giant McKinsey & Co., would explain her reasons for pulling out later Tuesday.
When her selection was announced by Obama on Jan. 7, The Associated Press disclosed that in 2005 the District of Columbia government had filed a $946.69 tax lien on her home for failure to pay unemployment compensation tax on household help.
Since then, administration officials have refused to answer questions about the tax error which she resolved five months after the lien was filed.
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