Ouch from CBS2 this governor is taking a beating. Well since the summer he's been taking a beating for his expensive flights as the state legislature is toiling hammering out a budget. The complaints are that these flights between Springfield and Chicago costs money. Now it might cost him some money...
Tax experts say the Internal Revenue Service could consider that travel a taxable fringe benefit.
But Blagojevich's office says the governor's main office is in Chicago -- not the state capital -- so trips there are for legitimate business.
The AP review found that the value of the flights by Blagojevich, his family and guests could be at least $225,000.
That could mean a potential tax bill to the governor of $60,000. Taxpayers could get hit with a penalty of $40,000 if he doesn't pay the bill.
Blagojevich could have significantly cut the amount he might owe for personal trips on state aircraft if he would have used a federal tax formula.
The Internal Revenue Service allows a steeply discounted rate for the value of executive's personal travel on company aircraft.
An Associated Press review of flights by Blagojevich, his family and guests shows trips with no business purpose valued at $225,000.
He could owe taxes of $60,000 on the flights.
His office says the issue is moot because the governor's main place of business is Chicago -- not the state capital -- so flights there are for business purposes.
If Blagojevich had used the IRS discount -- the flights would have a value of $15,000 or less.
He likely would still be able to use the discount for 2007 flights. That would save him tens of thousands of dollars.
The potential tax bill of $60,000 is based on Blagojevich applying the discount for 2007.