Comments on: The Problem Isn’t So Much that She’s a Tax Cheat…

By: damagedone

damagedone — Tue, 07 Oct 2008 22:53:32 +0000

If the State of Alaska made a mistake and failed to correct it, then it could probably be ultimately liable. More significantly, since Sarah Palin is CEO of the State of Alaska she has duty in my opinion to see that the laws are properly followed. Has she asked for a report on the situation? If not, why not? She has the authority to do so. The possible error appears to directly benefit her. Why is the McCain camp talking (criminal tax lawyer) about just following what the State of Alaska did? If there is ruling allowing her to exclude the payments from income – produce the ruling. If every CEO could just blame errors on the Payroll department and never pay the tax related to the income, it would be a pretty easy tax dodge for those running companies. Most of of the time when companies run into problems with FICA it is because they have misclassified workers as independent contractors rather than employees and thus have failed to withhold. Here, the State of Alaska may not have understood Federal income tax law for another different tax issue?

By: Dianed

Dianed — Tue, 07 Oct 2008 21:43:20 +0000

She bragged about firing the chef?
How much more money did she ”use” of ALaskans and not tell the poor people?

What a sleaze she is. She is can lie with the best of them

By: BargainCountertenor

BargainCountertenor — Tue, 07 Oct 2008 21:37:04 +0000

Actually, Joe Sixpack can file late. The August 15 extension is automatic, although you do have to pay estimated taxes owed, or you’re subject to interest (and possibly penalties) on the unpaid taxes.

A second 90 day extension requires justification, but I’m told (never experienced it myself) that the IRS accepts almost any reasonable justification. I think that “John McCain named me his VP nominee and I need to get my s*** in order” would probably qualify.

By: DBaker

DBaker — Tue, 07 Oct 2008 21:33:50 +0000

Yes – and this is where using H & R Block instead of a proper accountant will seriously come to bite them in the ass.

By: DBaker

DBaker — Tue, 07 Oct 2008 21:32:25 +0000

States do make mistakes but that should not excuse completely the underpayment of due taxes.

In fact, with regular companies, the burden lies on the employer to properly withhold the taxes. That’s why lots of company love “independent contractors” since they don’t have they have to worry about those nasty withholding taxes.

In a previous thread about this matter, I asked the same question, that is “Do State Governments face the same liability for so-called “940″ and “941″ taxes that corporate employers do?” In other words, is the State of Alaska liable for not following the withholding tax laws? I am not completely sure, but I read somewhere that 90 percent of the IRS Compliance Division cases involve the improper withholding of FICA taxes - this is my experience as well.

By: maryo2

maryo2 — Tue, 07 Oct 2008 21:31:12 +0000

From Democratic Underground citing Jack Bog’s Blog -

“There is more to brood about on the Palins’ returns, to be sure. Last year Todd Palin claimed losses from his snowmobile racing “business” as a tax shelter against his fishing income. He also claimed deductions for use of a portion of the Palins’ residence in his fishing business — deductions that are difficult to claim legitimately, and which may be further complicated if, as reported, the state reimbursed the Palins for use of that home as a travel allowance. … And if somebody at the IRS took a good, hard look at the payments for Sarah and Todd, we would bet that there would be some additional tax due there as well.
Now that the tax returns have been released, Bogdanski’s not alone anymore. The Washington Post, ABC News, and Wall Street Journal are on the story. So is the TaxProf Blog.”

By: DBaker

DBaker — Tue, 07 Oct 2008 21:26:37 +0000

I don’t know how they put that in terms of charitable contributions.

That’s what the blanket “$2,500″ is for. If I am not mistaken, you don’t have to itemize anything under $2,500 in cash contributions.

Most churches have an envelope system, where the church treasurer keeps track of who gives what and hands out a receipt at the end of the year.

By: LangostinoHues

LangostinoHues — Tue, 07 Oct 2008 19:37:09 +0000

Sorta like yelling “Fire!!” in a crowded theater?

No, sorta more like having a Wingnuttian Anal Probe, and then farting fire in a crowded theater/rally.

By: cinnamonape

cinnamonape — Tue, 07 Oct 2008 19:34:26 +0000

Even college kids know that they have to declare their financial aid as “income”. It’s crazy that the Palin’s think that they don’t need to include this in their taxes.

BTW I can only wonder what sort of stuff actually lies within the Cindy Lou Helmsley McCain tax records.

By: damagedone

damagedone — Tue, 07 Oct 2008 19:33:59 +0000

The WSJ article indicates that several tax experts thinks she has more income there. States do make mistakes but that should not excuse completely the underpayment of due taxes. Someone could call up the State of Alaska – Human Resources office and the payroll dept. to find out whether Alaska has some special rule for elected officials. If not, she has to follow the same rules as everybody else – meaning she very likely has more gross income and tax for the at home expense reimbursements. Since the US treasury is running short – it is the only patriotic thing to do. Please pay now, Sarah. Hurry, your country needs the cash.