12 Pages Posted: 6 Oct 2008
Date Written: October 5, 2008
Governor Palin's 2006 and 2007 tax returns create several teaching opportunities for basic tax classes. This paper analyzes five substantive issues created by the returns and by a legal opinion letter written by Roger Olsen on some of the issues.
The five issues are: (1) the proper treatment of $17,000 paid to Palin by the state of Alaska as her travel allowance; (2) the proper treatment of $43,000 paid to Palin as a travel allowance for her husband and children; (3) the proper treatment of a $9,000 loss claimed for her husband's racing activity; (4) whether the Palins are subject to the penalties for negligence; and (5) whether Mr. Olsen's letter meets the standards for tax practice in Circular 230.
Keywords: Palin, hobby loss, circular 230, covered opinions, travel reimbursements, income tax, civil penalties, negligence, tax returns, tax return preparation
JEL Classification: K20, K40
Suggested Citation: Suggested Citation