To: DuckTapeSunroof who wrote (7144 ) 2/18/2009 4:46:46 PM From: pompsander 1 Recommendation Read Replies (3) | Respond to of 103300 Palin owes tax on per diem, state says EXPENSES: Governor received meal money while living in Wasilla. By LISA DEMER ldemer@adn.com Published: February 17th, 2009 09:53 PM Last Modified: February 18th, 2009 10:39 AM Gov. Sarah Palin must pay income taxes on thousands of dollars in expense money she received while living at her Wasilla home, under a new determination by state officials. The governor's office wouldn't say this week how much she owes in back taxes for meal money, or whether she intends to continue to receive the per diem allowance. As of December, she was still charging the state for meals and incidentals. "The amount of taxes owed is a private matter," Sharon Leighow, Palin's spokeswoman, said in an e-mail. "If the governor collects future per diem, those documents would be a matter of public record." The revelation about Palin comes as U.S. senators, including Sen. Mark Begich, D-Alaska, are under scrutiny over back taxes. A survey by the political newspaper and Web site Politico (www.politico.com) found that Begich was one of seven senators who acknowledged having paid back taxes. Some other state employees also owe back income taxes for travel payments and will be getting revised tax forms, Annette Kreitzer, state administration commissioner, said in an e-mail. ADVERTISEMENT She wouldn't say which, or how many, employees will be receiving the notifications. The payments became a touchy issue for Palin last fall when she was running for vice president and campaigned as a budget watchdog. The Washington Post published a story in mid-September that said she had charged the state almost $17,000 for meals and incidentals while staying in her own home. The state considers Juneau, where she lives in the Governor's Mansion, to be Palin's official duty station. Palin billed the state for 312 nights spent in her Wasilla home during her first 19 months in office, according to the Washington Post. She received $60 a day tax free, money intended to cover meals and incidentals, while traveling on state business, her travel forms show. "Last fall we raised questions about longstanding practices within the Department of Administration regarding tax treatment of per diem payments," Kreitzer wrote in an exchange of e-mails over the past few days with the Daily News. "At the Governor's request, we reviewed the situation to determine whether we were in full compliance with the pertinent Internal Revenue Service regulations," Kreitzer wrote. "As a result of this review, we determined that per diem needs to be treated as income, requiring a revision of W-2 forms for any affected employees."adn.com