Passengers: Who's on board?
Illinois Gov. Rod Blagojevich's wife, Patricia, and the couple's two children have flown on state aircraft nearly 300 times since 2003. An Associated Press analysis found dozens of those trips could be personal and potentially amount to taxable income.
The AP analysis counted most of Patricia Blagojevich's flights as business-related, reasoning that taxpayers expect to see the first lady at official events. But the IRS is strict about spouses' travel and rarely allows free flights for children. Combined, Amy and Annie Blagojevich took 190 flights listed as business-related -- many of which they wouldn't have been on if they lived in Springfield and not in Chicago.
The analysis of personal flights did not count dozens of flights the children took to their father's inaugurals, state fairs, Springfield Easter egg hunts, Halloween parties, Christmas-tree lightings or Thanksgiving dinner at the usually empty Executive Mansion.
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Personal guests
Blagojevich and his campaign fund have accounts to reimburse the state for personal guests or passengers on political missions for him. But the reimbursements for more than 60 guests flying on nearly 150 flights aren't as much as the cost of chartering a plane, so the IRS could tax the difference, experts said.
The IRS apportions the charter cost among passengers. The amount underpaid for Blagojevich's guests was $24,000, according to the AP analysis.
For example, on Aug. 31, 2004, Blagojevich flew with two top staffers and a bodyguard on a business trip to Granite City to announce a work force training grant. Also on the plane were guests John Wyma, a former Blagojevich aide, and fundraiser Christopher Kelly, who was indicted on federal fraud charges last week.
The estimated charter value of that flight and the return Sept. 1 to Chicago was $4,641, which would amount to $1,548 for the guests' portion. But state records show Blagojevich's personal and political funds reimbursed the state just $688 for Wyma and Kelly, leaving potential taxable income to Blagojevich of $860.
One guest, a friend of Blagojevich's older daughter Amy, took 18 flights that were underpaid by $1,603.