February 18th, 2009
06:40 PM ET
5 years ago

Palin told to pay back taxes

Palin received per diem payments even though she was staying in her own home.
Palin received per diem payments even though she was staying in her own home.

(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


Filed under: Sarah Palin
soundoff (440 Responses)
  1. Coby

    Palin didn't pay her taxes? Why wasn't she named to Obama's cabinet?!

    In all seriousness, I still cannot fathom that we have a president who appointed a tax dodger to be Treasury Secretary and a Senate who approved his nomination. I hope millions of Americans "forget" to pay their taxes this year in proper protest.

    February 18, 2009 12:21 pm at 12:21 pm |
  2. Mark

    It would appear that one of the quickest ways to reduce the size of government would be to expel from office all the elected officials who just can't seem to figure out how much income tax to pay. In the true spirit of bi-partisanship, it appears that the affliction applies equally to the Democrats and the Limbaughs.

    February 18, 2009 12:21 pm at 12:21 pm |
  3. Nick

    "No problem, her PAC will pay for everything…."

    Sad, but probably true.

    February 18, 2009 12:22 pm at 12:22 pm |
  4. James Virginia

    AUDIT ALL PUBLIC OFFICE HOLDERS – NOW!!!

    February 18, 2009 12:22 pm at 12:22 pm |
  5. Obama 2012

    It is not about Palin and taxes people, it is about Palin,Mccain and the media being all over and block Mr. Obama from view......

    Please Keep them in the news as much as you want......

    Did I say Obama 2012!

    February 18, 2009 12:22 pm at 12:22 pm |
  6. Connie Florida

    Let's make sure to revisit this each and every time she talks about runnning for any gov't. office-ever again.

    February 18, 2009 12:22 pm at 12:22 pm |
  7. Independent Paul

    This is a completely different situation. This went through a review, a decision was rendered, and she will pay. This is completely different from Daschle, and Geitner, as she REQUESTED through her office that this be reviewed, to make sure she was doing things correctly, unlike the others who were looking to hide.

    However, it is alarming how many public officials are not paying taxes.

    Also, did you know that the new stimulus package has a congressional payraise in it?

    February 18, 2009 12:22 pm at 12:22 pm |
  8. andrea

    This is what I call palling around. What goes around comes around. You betcha!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    February 18, 2009 12:22 pm at 12:22 pm |
  9. Franky

    "no 1 pays taxes anymore .. is that the new get rich thing?"

    Of course, we've been doing it for years, LOL!! Just watch..."Taxes? What the heck is that?" You see...and for the record, when you do business with us, no taxes are cut out. But if you get caught with the IRS, don't blame us, take the politicians road, LOL!! We'll kill you...no for real, we take it easy, LOL!!

    February 18, 2009 12:23 pm at 12:23 pm |
  10. T in the Big D

    I smell the toast burning...we already knew she was a fraud!

    February 18, 2009 12:23 pm at 12:23 pm |
  11. Robin in SC

    Daschle's problem was all over conservative news as were the problems of other cabinet picks. The per diems were questioned and questionable during the campaign, but were glossed over. Now, this right wingnut extremist is guilty of doing the same thing that her extremists supporters have blasted Obama and his appointees for and its buried in the ticker? Not on Fox? C'mon guys...fair is fair.

    February 18, 2009 12:23 pm at 12:23 pm |
  12. Country First

    COUNTRY FIRST = MY WALLET FIRST .... yes Mrs. Palin please pay back.

    February 18, 2009 12:23 pm at 12:23 pm |
  13. Morley

    How many times will the public hear about American govt officials of both parties not paying their taxes? Or corporate bums receiving bailouts and then giving themselves bonuses? And, still wonder why America is in financial troubles? How do Americans expect their country to remain strong when everyone tries to avoid taxes? Pay your share, people, and get out of debt. Otherwise, it will get worse.

    February 18, 2009 12:23 pm at 12:23 pm |
  14. Zach K

    At this rate. Failing Palin is going to lose re-election, along with her "maverick" hero Johnny.

    Say hi to Ted Stevens Sarah. :)

    February 18, 2009 12:23 pm at 12:23 pm |
  15. simon

    Per Diem
    IS NOT INCOME !

    It can't be.
    Can it?

    February 18, 2009 12:23 pm at 12:23 pm |
  16. Steve from Florida

    Maverick, huh? Since when doesn't a public figure have to disclose taxes, etc?

    February 18, 2009 12:23 pm at 12:23 pm |
  17. What a Sham

    Where are the intelligent republican critics that bashed Daschle so bad now? Turns out their beloved Falin isn't paying taxes either. You'd have to be a fool to trust her anyway. She found a Maverick way to avoid taxes apparently!

    February 18, 2009 12:23 pm at 12:23 pm |
  18. Steph

    HA HA HA
    Pay your taxes and crawl back in your cave.

    February 18, 2009 12:24 pm at 12:24 pm |
  19. Two faced

    She is the ONLY Republican politician with tax problem. Laughing out loud.

    Kiddings aside, all politicians problem with paying taxes seem to support the notion that the U.S tax code is too complex and conducive to tax 'cheating'.

    February 18, 2009 12:24 pm at 12:24 pm |
  20. Chris

    Oh gosh darn it, what a mavericky thing to do, ya know. Like dodgin them taxes. Had McCain won, she would have gotten away with it.
    I count my blessings every night, that Caribou Barbie isnt a heartbeat away from the presidency.

    February 18, 2009 12:24 pm at 12:24 pm |
  21. Dexter Skagway

    You have to be utterly ignorant to find this woman anything other than repugnant.

    February 18, 2009 12:24 pm at 12:24 pm |
  22. hrh

    " 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."

    There's the lede for your article, CNN. But thanks again for proving your incredible bias.

    Governor Palin ASKED FOR this review because she saw that Alaska's tax code for elected officials might have problems.

    And, lo and behold, problems were found. So now she's making it right.

    Certainly not the way CNN, the Clinton (third term) News Network is reporting it.

    February 18, 2009 12:24 pm at 12:24 pm |
  23. James

    From the article: "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."

    So, at the time they were paying her no one concidered the payments to be income. So, no tax was due. Now, upon further review, the payments are concidered income so she will pay the taxes. What is the problem?

    Daschle's case is different because he knew his driver and car was taxable. He just chose not to tell his accountant about it.

    February 18, 2009 12:25 pm at 12:25 pm |
  24. LMFAO

    This is funny as hell. This conservative, rightwing, can't do anything wrong and only their perception of the world is right, broad finally got called out on something of this magnitude. I can't stand her and it really baffles me on all the people that wanted her in office. OMG can you imagine where this country would be in...?????

    AMERICA- we did the right thing.

    oh wait- didn't people just love her for her family values and morals? hhmmmmm????

    February 18, 2009 12:25 pm at 12:25 pm |
  25. obama-mama

    Don't worry Sarah this will all be taken care of by the GOP. Give weasel Michael Steele a ring.

    February 18, 2009 12:25 pm at 12:25 pm |
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