Palin told to pay back taxes

[DealMonkey]

This doesn't bode well for the GOP. They're "shining star" of potential candidates for 2012 (or maybe 2010?), is a tax cheat. Just like all of those democrats who Obama wanted nominated to his cabinet.

Palin told to pay back taxes

(CNN) ? Alaska officials have told Gov. Sarah Palin she must pay back taxes on the thousands of dollars she received in state per diem funds while living at her home in Wasilla.

The Washington Post first reported last September that Palin had billed the state for nearly $17,000 worth of meals and other living expenses while staying in her own home during the first 19 months of her administration, even though the official governor?s residence is in Juneau.

The news clouded Palin?s self-styled image as a small government reformer, just weeks after she was tapped as John McCain?s running mate. At the time, Palin?s office said the governor was entitled to the payments.

Alaska administration commissioner Annette Kreitzner told the Anchorage Daily News on Tuesday that the governor?s office had asked the office to review the tax treatment of the per diem payments after questions about the funds were raised.

Kreitzner told the paper that following the review, the per diem payments will be treated as income and that a revised W-2 statement will be sent to the governor.

Palin?s office would not say how much she owes in back taxes, or if she would continue to receive the payments.

?The amount of taxes owed is a private matter,? Palin spokeswoman Sharon Leighow told the paper. ?If the governor collects future per diem, those documents would be a matter of public record.?

http://politicalticker.blogs.c...old-to-pay-back-taxes/

Wink wink fingerpistols! Oooopseeee!

 

[Genx87]

Funny but she is no candidate in 2012 anyways. And this isnt really the same thing as not paying unemployment insurance or letting Turbo Tax screw up your income tax return when you are about to run the IRS.

The state has decided to treat this as regular income and thus subject to taxation after the fact.

 

[Red Dawn]

How about those who buy stuff from Amazon or New Egg and don't pay sales tax? They are tax cheats too.

 

[winnar111]

Originally posted by: DealMonkey

Kreitzner told the paper that following the review, the per diem payments will be treated as income and that a revised W-2 statement will be sent to the governor.

Not her fault if she didnt get the right paperwork.

 

[Robor]

Originally posted by: Red Dawn
How about those who buy stuff from Amazon or New Egg and don't pay sales tax? They are tax cheats too.

Shhhhhhhhhhhhhhhhhhhhhh! :laugh:

 

[Triumph]

I don't think the question should be about paying taxes (I don't pay taxes on the per diem I get when I travel for work. It's to cover food and lodging.) The question is, why was she being paid per diem to live in her own house?

 

[chess9]

Originally posted by: Red Dawn
How about those who buy stuff from Amazon or New Egg and don't pay sales tax? They are tax cheats too.

If the law requires the seller to collect sales tax then the seller is the tax cheat, not the buyer. I cannot imagine a case in which the buyer is the tax cheat, excepting failure to pay import duties, which is frequently the case in many countries. The English try to avoid the VAT like the plague because it's 17%, in most cases!

-Robert

 

[Brainonska511]

Originally posted by: winnar111

Originally posted by: DealMonkey

Kreitzner told the paper that following the review, the per diem payments will be treated as income and that a revised W-2 statement will be sent to the governor.

Not her fault if she didnt get the right paperwork.

LOLexcuses

 

[Brainonska511]

Originally posted by: chess9

Originally posted by: Red Dawn
How about those who buy stuff from Amazon or New Egg and don't pay sales tax? They are tax cheats too.

If the law requires the seller to collect sales tax then the seller is the tax cheat, not the buyer. I cannot imagine a case in which the buyer is the tax cheat, excepting failure to pay import duties, which is frequently the case in many countries. The English try to avoid the VAT like the plague because it's 17%, in most cases!

-Robert

If the seller does not collect sales tax, the buyer is obligated to pay use tax for the fact that he didn't pay sales tax. Not paying use tax makes you a tax cheat.

 

[daveymark]

OP, just so we're clear - you're saying that an employer's mistake translates to the employee being a tax cheat? I'm interested in the logic used to arrive at this determination. please explain.

 

[DealMonkey]

Originally posted by: Brainonska511

Originally posted by: winnar111

Originally posted by: DealMonkey

Kreitzner told the paper that following the review, the per diem payments will be treated as income and that a revised W-2 statement will be sent to the governor.

Not her fault if she didnt get the right paperwork.

LOLexcuses

LOLCHANGEYOUCANBELIEVEIN!

 

[Lemon law]

Palin raked in a lot of stuff from the GOP, free clothes in $ 100,000 lots to name but a few. If the Feds want to join Alaska, Palin could owe a huge bundle of back taxes.

 

[Thump553]

People toss around the term "tax cheat" far too much these days. From the quoted article and what I know of the tax law, Palin's position was reasonable. Now that the authorities have ruled against her, she should pay up (assuming she doesn't appeal the decision).

In my book, a person is a tax cheat if their conduct is reasonably subject to negligence or criminal penalties.

 

[DealMonkey]

Originally posted by: daveymark
OP, just so we're clear - you're saying that an employer's mistake translates to the employee being a tax cheat? I'm interested in the logic used to arrive at this determination. please explain.

I'm being melodramatic?

 

[spacejamz]

Hey OP, naybe you try comprehending your own article before you start pointing figures...

Here are some key points from article:

At the time, Palin?s office said the governor was entitled to the payments.

the governor?s office had asked the office to review the tax treatment of the per diem payments

Kreitzner told the paper that following the review, the per diem payments will be treated as income

How you compare this to not filing taxes is utter bullshit. Period.

 

[RKDaley]

Originally posted by: DealMonkey

Originally posted by: Brainonska511

Originally posted by: winnar111

Originally posted by: DealMonkey

Kreitzner told the paper that following the review, the per diem payments will be treated as income and that a revised W-2 statement will be sent to the governor.

Not her fault if she didnt get the right paperwork.

LOLexcuses

LOLCHANGEYOUCANBELIEVEIN!

:thumbsup::laugh:

 

[BoberFett]

Originally posted by: Genx87
Funny but she is no candidate in 2012 anyways. And this isnt really the same thing as not paying unemployment insurance or letting Turbo Tax screw up your income tax return when you are about to run the IRS.

The state has decided to treat this as regular income and thus subject to taxation after the fact.

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

 

[spacejamz]

Originally posted by: BoberFett

Originally posted by: Genx87
Funny but she is no candidate in 2012 anyways. And this isnt really the same thing as not paying unemployment insurance or letting Turbo Tax screw up your income tax return when you are about to run the IRS.

The state has decided to treat this as regular income and thus subject to taxation after the fact.

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

I get a per diem when I travel for the company and don't have to file anything on my tax return...pretty sure this is the same for all of my co-workers as well.

is the governer's per diem different or something???

 

[Genx87]

Originally posted by: BoberFett

Originally posted by: Genx87
Funny but she is no candidate in 2012 anyways. And this isnt really the same thing as not paying unemployment insurance or letting Turbo Tax screw up your income tax return when you are about to run the IRS.

The state has decided to treat this as regular income and thus subject to taxation after the fact.

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

afaik the state doesnt tax per diem's unless they rule it outside the scope of her job. In this case the the state decided when living at her home in Wasilla a per diem will be recorded as taxable income. I have worked for the fed govt on contracts that had per diems. It was never taxed unless the reimbursement went beyond what the allowed amount was.

 

[sactoking]

Originally posted by: BoberFett

Originally posted by: Genx87
Funny but she is no candidate in 2012 anyways. And this isnt really the same thing as not paying unemployment insurance or letting Turbo Tax screw up your income tax return when you are about to run the IRS.

The state has decided to treat this as regular income and thus subject to taxation after the fact.

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Well, since a per diem is SUPPOSED to be reimbursement for funds one expends (on an after-tax basis, mind you) out of their own pocket for business pursuits, I think many reasonable people would expect it to be tax-free. After all, if it is taxable you're being double-taxed on it (once, when you earn income and again when the already taxed income you earned is reimbursed by an employer).

 

[bsobel]

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Per Diem's are typically paid for expenses incurred for the job, its not her income. In a corporate setting it would cover gas/meals while traveling and the corp would right off those expenses against the amount paid. It's not 'income' to me unlike salary which you would pay income tax on.

 

[imported_Lothar]

Originally posted by: bsobel

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Per Diem's are typically paid for expenses incurred for the job, its not her income. In a corporate setting it would cover gas/meals while traveling and the corp would right off those expenses against the amount paid. It's not 'income' to me unlike salary which you would pay income tax on.

Yes, but if the company writes those expenses on their own taxes, doesn't it mean you have to report it on yours?
Isn't that what happened to Tom Daschle?

 

[Genx87]

Originally posted by: Lothar

Originally posted by: bsobel

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Per Diem's are typically paid for expenses incurred for the job, its not her income. In a corporate setting it would cover gas/meals while traveling and the corp would right off those expenses against the amount paid. It's not 'income' to me unlike salary which you would pay income tax on.

Yes, but if the company writes those expenses on their own taxes, doesn't it mean you have to report it on yours?
Isn't that what happened to Tom Daschle?

Daschel recieved a benefit not a per diem.

 

[bsobel]

Originally posted by: Lothar

Originally posted by: bsobel

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Per Diem's are typically paid for expenses incurred for the job, its not her income. In a corporate setting it would cover gas/meals while traveling and the corp would right off those expenses against the amount paid. It's not 'income' to me unlike salary which you would pay income tax on.

Yes, but if the company writes those expenses on their own taxes, doesn't it mean you have to report it on yours?
Isn't that what happened to Tom Daschle?

No unless they are ruled as income. For example. If my work contract says I'll make X a year and my company will pay for all of my dinner costs during employment then those dinner costs would be income and taxable. However, if work purchases dinner for me as part of my job (say I take a client to dinner) that is reimbursed as a work expense and doesnt count as income to me.

 

[sactoking]

Originally posted by: Genx87

Originally posted by: Lothar

Originally posted by: bsobel

Did she honestly think that she could be paid tax free? What intelligent person would think per diem was a way around paying income taxes?

Per Diem's are typically paid for expenses incurred for the job, its not her income. In a corporate setting it would cover gas/meals while traveling and the corp would right off those expenses against the amount paid. It's not 'income' to me unlike salary which you would pay income tax on.

Yes, but if the company writes those expenses on their own taxes, doesn't it mean you have to report it on yours?
Isn't that what happened to Tom Daschle?

Daschel recieved a benefit not a per diem.

Yeah, Daschle got a bennie: free limo and driver
Per diem would be for something like food expenses incurred while traveling on business.

One is necessary, the other frivolous.