Nancy Killefer says she is withdrawing her candidacy for chief performance officer because she doesn't want her tax issue to become a "distraction."
In a letter to President Barack Obama, Killefer said she understands that the duties of chief performance officer are urgent and any delays must be avoided.
She said she was reluctantly withdrawing her name from consideration.
Killefer failed for a year and a half to pay employment taxes on household help. She was the second major Obama administration nominee to withdraw and the third to have tax problems complicate their nomination after Obama announced their selection.
(Copyright 2009 by The Associated Press. All Rights Reserved.)