Palin failed to pay taxes on her per diem payments & MORE!

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

It's very clear that taxes were due on these per diems. This is tax evasion by Sarah Palin, pure and simple. It doesn't quite rise to the level of Richard Nixon's utter failure to pay any taxes for a few years while he was president. But what a standard to be flirting with.

Palin's per diems are themselves controversial. She billed the state of Alaska nearly $17,000 for 312 nights she spent at her house in Wasilla. Because the governor has a mansion in Juneau and is supposed to reside and work there (though she is in fact absent far more than she's present in the capital), she may be permitted technically under state regulations to claim a per diem for lodging while she's staying at her own home. But it looks pretty cynical to claim to be a reformer while seeking payments for living at home. That's particularly true since Palin also billed the state to fly her husband and children around the state, to the tune of more than $43,000. Once Palin brought one of her daughters with her at great expense to a Women and Leadership conference in New York City, where they stayed in an extremely luxurious hotel.

(snip)

For the 2007 tax year, Todd Palin's self-employment brought him $66,893 in gross receipts — $49,893 from fishing and $17,000 from snowmachine racing. But, the returns show, he claimed so many deductions that he reported only $15,513 net profit from the fishing operation and claimed a $9,639 loss from his racing, leaving him with an overall net income of only $5,874.

Those deductions enabled the Palins, who have four dependent children, to enjoy a 15 percent tax rate for 2007 and a rate of less than 10 percent for 2006.

Interesting article. I wonder if THIS will hit the MSM?

Good story catch, napi21! :thumbsup:

bailout....they better hit on this and Troopergate.

of establishing your main residence, which is based on the number of nights spent in said residence. As such, her main residence is not the gov's mansion, but her personal home. therefore, it would seem to follow that she was not entitled to collect per diem for her time spent in main residence.

any lawyers out here know what the rules are here?

was eligible for the per diem. HOWEVER, it does seem that the IRS would view this as additional compensation and NOT reimbursement for business expenses.

Let's see:

In 2007, in order to avoid a conflict of interest relating to his wife's position as governor, he took a leave from his job as production supervisor when his employer became involved in natural gas pipeline negotiations with his wife's administration. Seven months later, because the family needed more income, Todd returned to BP. In order to avoid potential conflict of interest, this time he accepted a non-management position as a production operator.
http://en.wikipedia.org/wiki/Todd_Palin

Mr. Palin goes back to Prudhoe - http://www.ktuu.com/Global/story.asp?S=6965360

I can't find anything about Todd being laid off or not working any more recently in the news.

Palin's nominal pre diem sure sounds like gross income to me....

much do what ever they please when it comes to how they treat the per diem amount taxable. It really gets a little touchy if the State Leg. votes a certain amount of allowable deductions.

She should still claim the money but can all but erase it on her sch A, the Itemized Deductions.

As for Todd, he had better be showing an Income from his Snow machining at least 3 out of 5 years or they will make him pay full taxes on his "prize" money.

I find it hard to believe she could claim food, lodging, or car expenses when she was at HOME!

under the law and only aply to State reps and executives. It has to be voted on by the State.

She should have recognized that as income and then, on Form 2106, take her exepense. Of course that is limited by the 2% floor on "Other" Itemized deductions such as Union Dues, business expenses and tax preparer fees.

That's why we always want to consult our friendly tax professionals....;-)

The IRS was going to reject the deduction but I fought and they were allowed to take it.

But again, in Palin's case, she is accepting the per diem from the state, from what I gather from the article. That makes a difference.

If I have some time later I will go back and review my notes on that audit.

governor's mansion, just in case she wanted to stop in there for a night or two? Between the staff (for example, she said she got rid of the chef, but she was soon rehired under a new title), cleaning staff, etc., and the cost to keep it heated and the lights and water on? Why pay her for her own house if she is also costing them that?

Seems this was a way to get the taxpayers to pay her mortgage for her, no?

employee for expenses they would NOT have had if they weren't traveling on behalf of the company. IMO, Sarah was NOT traveling on behalf of the State of AK since SHE decided to remain in her home and work out of a satellite office! What possible "extra expenses" could she have incurred? Certainly she was still going to eat with her family, there were no travel expenses, no motel room costs, absolutely nothing I can think of that would justify paying someone a per diem for staying at home and simply driving to & from work.

If it was done by someone else, you just know she's going to blame this on bad advice instead of her desire to shirk her duties as a taxpayer to pay her fair share.

and the beauty of it is it is tax free money. if you play your cards right, ie: watch your budget on the road, you make extra money. The fact that she is claiming per diem is just wrong. I was a remote employee. My 'offical' location was Warren, NJ but I stayed in CO and worked on the road. I did not receive per diem for those days I was at home only the days I was on customer site. This seems completely bogus to me. And just because it is 'legal' for her doesn't make it right....miss transperacy and ethics queen.