Palin failed to pay taxes on her per diem payments

[babsbunny]

http://www.unbossed.com/index.php?itemid=2325

In an overview of Sarah Palin's tax returns for 2006 and 2007, which she has finally released, the Associated Press reports that Palin neglected to pay the taxes due on $17,000 she received in per diem payments as Governor of Alaska. A McCain campaign official claims, falsely, that Palin owed no taxes on those payments.

Sarah Palin makes $125,000 a year as Alaska governor. Plus, since she took the job in December 2006, she hasn't paid taxes on the more than $17,000 she received in controversial per diem payments for working out of the family's lakeside home in Wasilla...

Regarding the per diem dispute, Comella said Juneau is the governor's home base and therefore whenever she works elsewhere, she is entitled to charge the state. Comella contended the per diem payments are not taxable.

[Benhurst]

1. Oh well. She's special.

She shouldn't be held to the same standard as common American peasants.

[nyhuskyfan]

2. Even if its determined she broke no laws

It is so completely unethical. Per diems are high to allow for the high expenses of dining on the road out of hotel rooms. When you are in your own living room, you don't need to bill the state $60 a day (or however the math works out).

[TexasObserver]

3. Might be useful as a 527 attack ad.

However, as a practical matter, it's as simple as their filing an amended return, disclosing as income the per diem, and tendering the appropriate interest and penalty, or trying to negotiate on those.

This is a fairly common mistake of taxpayers - not considering per diem as income. Of course, some or all of those per diem payments may go to deductible expenses, which will require their own stack of receipts and such. The big no-no is taking the expenses paid by the per diem as deductions without declaring as income the per diem.

[eshfemme]

4. Even more evidence that she's a fucking welfare queen

Just fits in with McCain who's been on the public dole for all of his life too!

What a team of leeches.

[GoesTo11]

5. Look at Todd's deductions too

He deducted about 50,000 per year out of his 60,000 per year of income from fishing and racing, and most of those deductions look pretty bogus.

If any of us did what they did and got audited, they would bust us on the per diems and on those deductions. These people are playing real fast and loose with their tax returns. I'm sure they would get busted in an audit, they'd have to pay, and the only question would be whether it was intentional or not.

[Matariki]

6. Aren't per diem payments reimbursements and not income?

That's what someone claiming to be a CPA said here in a post on the topic.

[DemsUnited]

7. maybe for the per diems, but family travel reimbursements are income to the Palins.

[lonestarnot]

8. Well if you have nothing to be reimbursed for in the first place, I mean

she charged the gov. this while at her own home. So WTF! Why are we wondering about the fucking tax? :wtf:

[Matariki]

10. Indeed. That is a whole 'nother issue. Hope Alaskans grill her on that one.

I really don't think she has much of a career left, once she has to go back home to Alaska in November.

[lonestarnot]

21. .

[Essene]

12. I'm sure it can be argued both ways, but there must be a simple legal answer

[Essene]

14. According to the IRS....

http://www.irs.gov/pub/irs-regs/perdiemfaq&a.prn.pdf

Payments will be taxable to the employee when any of these situations are true:
• No expense report is filed with the employer,
• The expense report filed does not include the date, time, place, amount and business purpose of the expense,
• A flat amount is given to the employee and no expense report is required, or
• Per diem is paid in excess of the allowable standard federal rate.

Allowable federal rates:
http://74.125.113.104/Pubs%20&%20Forms/Per%20Diem%20Pubs%20&%20Forms.prn.pdf

[baldguy]

9. Tax cuts begin at home.

[JohnMcCant2008]

11. So now they have a Subpoena-Dodging-Tax-Evader running for VP??? Where does the madness end?

[LiberalAndProud]

13. IRS trouble? oh noes!!! -(spiro agnew) /nt

[msallied]

24. Spiro Igloo, in this case. LOL

[CitizenPatriot]

15. I get per diem for work

and I've always been told to save the receipts for food and hotel and taxi bills. because I may need to justify that I spent all of the per diem and if I didn't, it becomes taxable income.

this is total BS - collecting that kind of money and not claiming it as income while you are in your own home.

I still don't understand why she only paid like 10% in taxes while everyone I know in her income bracket pays 30-35% at least.

[Essene]

17. how do your taxes work on that?

[CitizenPatriot]

19. it is tax-free if you actually spent the money

on things relating to being out of town: food, transportation, etc. here's an example: I am sent to NY for the week and I get 150/day per diem for food and taxi. I save all the receipts and keep them in an envelope for that trip and I give those to my tax preparer. They tell me if I owe taxes on that money based on what I actually spent.

Usually, you have spent that amount over the course of the week, give or take a few dollars.

That is why it doesn't make sense to claim that in your own home; the point is, you are working out of town, and there are costs associated with it that you wouldn't have if you were living at home during that work. It may have been legal for her to do this (I don't see how, if anything it was a loophole taken advantage of), but it certainly isn't ethical or for that matter, indicative of a "mavrick" (sic- intentional). It's like saying FU to the taxpayers, who are paying for her gov mansion which she has decided not to live in (and thus not come to work actually for the greater part of her term as gov). Tax payer is also paying for a cook, etc for her home and now they are also paying per diem? Come on. Talk about taking from both hands.

And in the end, after working the system like this, she hardly ever shows up to work, prompting her colleagues to joke about getting "where's sarah" buttons to wear.

[vaberella]

16. Did they really vet her? She doesn't pay taxes. We got a pregnant teen. Troopergate.

My God. I know McCain was in trouble for not paying some taxes..but this is crazy.

[truthisfreedom]

18. She's Tundra Trash.

[LiberadorHugo]

20. Who cares if we pay our taxes or understand economics?

Jeebus will provide!!!

[Laura PourMeADrink]

22. I get a per diem - it's not taxable

[msallied]

23. I think it could be argued, however,

that what Palin received was not per diem. Especially since she was working from home. It sounds like she took advantage of a loophole of some sort.

[Laura PourMeADrink]

25. Right, what I said is not the issue. I wonder is there a governor's

mansion / igloo in the capitol? If there is - why didn't she live there? If there
are no expenses involved with upkeep on her not living in the mansion - then paying
for her to live in Wasilla would be an even exchange. Strikes me though that
her mode is take advantage because "I am not as bad and crooked as the last people
running this place."