Sen. Tom Daschle withdrew his nomination for health and human services secretary and Nancy Killefer removed herself from consideration as deputy chief performance officer.
Timothy Geithner also had tax issues but was eventually confirmed as treasury secretary.
One might surmise that the Obama vetting team did not check tax records, or relied on statements given by the nominees.
FOXNews
Obama Admits Embarrassing Day for Administration
ABC News -
By LAUREN SHER President Obama acknowledged that it has been an embarrassing day for his administration, taking responsibility for three of his high-level nominees' withdrawing their names because of tax troubles.
Video: White House: Obama Confident in Vetting Process 
Comment by Cliff Kincaid President, America’s Survival, Inc
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