Sarah Palin - Tax Problems

The Wall Street Journal today reports that a number of tax experts believe VP nominee Sarah Palin is required to pay federal taxes on reimbursements from the State of Alaska.
While several tax experts have raised serious questions about whether the payments to Gov. Palin are taxable income, they said the case was clearer cut for treating the reimbursements for the children's expenses as taxable income. "The kids are a slam dunk problem," said Robert Spierer, a partner with the accounting firm Perelson Weiner LLP in New York City. "The husband you could make an argument that he had to be there because it was required for spouses to be there."
But not the children, he said. "I don't think I would ever claim that on my clients' returns. I can't think of a real strong argument for it."
Gov. Palin also accepted $17,000 in per-diem meal payments for nights spent at her home in Wasilla, 40 miles from the governor's office she used in Anchorage, Alaska's largest city. Gov. Palin often used that office rather than traveling to the state capital of Juneau, more than 800 miles away. Several tax experts have argued this should be counted as taxable income.
Palin was reimbursed $25,000 for her children's travel. According to Texas Tech University School of Law tax professor Bryan Camp the IRS would ask questions to find out whether the travel reimbursements were reported properly.