We may have more information on why Caroline Kennedy dropped her bid for Hillary Clinton’s Senate seat. Though Kennedy’s official statement cited "personal reasons," The New York Times today reports that tax problems may have been the real reason:

Problems involving taxes and a household employee surfaced during the vetting of Caroline Kennedy and derailed her candidacy for the Senate, a person close to Gov. David A. Paterson said on Thursday, in an account at odds with Ms. Kennedy’s own description of her reasons for withdrawing. 

Regardless, some are still insisting that Kennedy dropped out after it became clear that Paterson didn’t intend to pick her. Two Democratic sources — speaking anonymously, of course — claim Paterson’s now leaning toward upstate Representative Kirsten E. Gillibrand, who’s served two terms.

Kennedy’s team is keeping quiet on the reasons behind Caroline’s decision, but The New York Times intimates there’s something fishy afoot. 

During the early afternoon Wednesday, [an] aide said, Ms. Kennedy became aware of what the aide referred to as a “personal situation” that could prevent her from fulfilling her duties as senator. The personal situation was not related to the seizure that her uncle, Sen. Edward M. Kennedy, suffered during an Inauguration luncheon on Tuesday, the aide said, declining to be more specific.

Another aide to Ms. Kennedy, while not denying there were issues that emerged during her vetting, said that there was nothing that surfaced that would disqualify her from the appointment, and that the Kennedy camp and the governor’s operation had been discussing how to publicly disclose the issues. 

Whatever Kennedy’s reasoning, we have a feeling this story will continue to unfold in the days to come. Especially since Paterson’s aides are reportedly fuming over Kennedy’s sudden departure. Could this "tax" report simply be retribution?