Killefer was the second major Obama administration nominee to withdraw and the third to have tax problems complicate their nomination after President Barack Obama announced their selection.

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.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP)—An Obama administration official says Nancy Killefer is withdrawing her candidacy to be the first chief performance officer for the federal government.

The official said the 55-year-old executive with consulting giant McKinsey & Co., will detail her reason for pulling out later Tuesday.

When her selection was announced by President Barack Obama on Jan. 7, The Associated Press disclosed that in 2005 the District of Columbia government had filed a more than $900 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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