(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.
UPDATE: Palin spokesman Bill McAllister tells CNN that Palin "will abide by all IRS regulations and rulings and will pay what she owes. That number, though, is not a matter of public record."
Post updated 3:02 p.m. EST
From CNN Politics
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oops.GOT hit by the club of the IRS.Dont mess with mother nature or the IRS.They dont have to follow any laws.
Will she ever go away! I am so glad she isn't the Governor of my state. What a looser hanging on till the next election. Surely, the Republicans would never consider running her..she is just a breeder with a lot of baggage and no ability to perform at a level this country and the state of Alaska needs. Go AWAY.
"I wonder how Fox News will handle this matter?"
It won't even be mentioned.
They only report pro-Repub. or Anti-Dem reports. They have been getting even worse since the election.
It is literally like going to an Anti-American news agency now.
Please go away Sarah. The longer you are in the spotlight the more exposed you become (in other words, a Bimbo)......
Once again, the sun rises, and CNN posts another story to prove how much they dislike Palin. Oh, it's great to be alive here in America!
PC, why do you think Palin should keep her opions to herself. You cetainly spout out yours every chance you get. I guess others opinions are fine, as long as they are inline with yours....
Palin is a joke! How can she do something like this? She would have gotten away with it if McCain did not tap her for VP. This goes agains all she says she stands for. I hope they remember this when she runs for office.
Imagine that !
slimebag.
Well, what do you know....after all the bashing Obama's cabinet picks had to take from the GOP, now it appears one of their annointed ones hasn't paid her taxes either.
Let's have fun watching the GOP spin *this* story!
This woman is a piece of work.
Apparently, between troopergate, and this matter, she doesn't feel that the law doesn't apply to her.
Hypocrite.
I HEREBY CALL UPON GOV. PALIN TO RESIGN EFFECTIVE IMMEDIATETLY.
People had been asking about the per diem tax issue during the election. If you're given money by an employer, it has to be reported. If Palin had been able to resolve this the minute the questions were asked instead of going on a four month victory lap, then the GOP wouldn't be looking so hypocritical right now.
she is a BIMBO*
Lesson: You can only cheat and chisel on taxes if you are an Obama cabinet appointee.