Now, the Wall Street Journal has picked up the story. The McCain campaign is blaming the State of Alaska and H&R Block! http://online.wsj.com/article/SB122334021713509963.html?mod=googlenews_wsj

The McCain-Palin campaign released an opinion letter from Washington, D.C., criminal tax lawyer Roger M. Olsen, concluding that Gov. Palin complied with Alaska law in not reporting the reimbursements and meal payments as income.

A spokesman for the McCain campaign said Gov. Palin relied on the W2 wages form from the state of Alaska in filing her tax return, which was prepared by H&R Block. The W2 did not include the travel reimbursements as income.

"The state believes it is interpreting IRS policy correctly. It has no indication to believe that it is misinterpreting that policy," said Brian Jones, a McCain campaign spokesman.

Gov. Palin "has every right to assume the state of Alaska knows how to handle her W2," said Alan D. Westheimer, a certified public accountant in Houston. "These people [the Palins] are not tax lawyers. They went to H&R Block" to prepare their taxes.

Whether or not the State of Alaska gave her a bad W2 only goes to the penalty issue. It is  an admission of liablilty.  SHE DEFINITELY OWES TAX ON THE REIMBURSEMENTS. THe H&R Block excuse doesn't get you out of paying what you owe.!

For my earlier posts on this topic, see: http://www.democrats.org/page/community/post/stevewilson/CClD

and

As a tax attorney & CPA, I would advise Sarah to AMEND YOUR TAX RETURN AND PAY THE TAX! And quit going to H&R Block.