ANCHORAGE, Alaska | Sarah and Todd Palin underpaid their estimated taxes with an April extension and could owe interest, according to an Associated Press analysis of the couple’s 2007 federal tax returns released Friday by the McCain campaign.
On an undated extension form filed with a $2,000 check dated April 11, the Palins claimed an estimated tax liability of $22,721 and total withholding payments of $20,721. The attached check meant the couple believed they had paid all of their taxes for 2007, as required.
However, when they filed their taxes last month, dated Sept. 3, their tax liability turned out to be $24,738 - meaning they owed an additional $2,017. IRS rules require that when a taxpayer files for an extension in April, all outstanding taxes must be paid at that time.
When asked about any interest or penalties, Maria Comella, McCain-Palin spokeswoman said the couple had paid “at least $2,017,” and that the campaign was researching if an additional payment had been made.
“In April, they made a reasonable estimate of what they would owe, and they underpaid,” she added.
The documents released Friday by the McCain campaign contained a copy of the $2,000 check sent with the April extension, but there was no copy of any check that might have been sent when the tax return was ultimately filed Sept. 3.
Overall, the 2007 return shows that the couple had a gross adjusted income of $166,080 and paid $24,738 in taxes - about a 15 percent rate after deductions. In 2006, records show, the Palins earned $127,869 as adjusted gross income, with taxes paid listed at $11,944 - less than a 10 percent rate.
On federal financial disclosure forms, also released Friday, Mrs. Palin and her husband listed assets worth from $960,000 to $2.3 million. Because the values of assets are reported in broad ranges, it’s not possible to calculate an exact value for their holdings.
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