Wednesday, April 16, 2008

Franken and California tax returns? Whatever...

I was critical of Al Franken following the discovery that his company had not been paying workers' comp insurance for a number of years in New York. A $25,000 fine was levied against his company by the state of New York.

Now, the Republicans have found that he didn't pay owed state taxes in California. Bad day for Al Franken.

Is this a real controversy? Does it matter?

I had a problem with the New York state matter, but the more recent discovery does not rise to the same level. It appears that Franken got bad advice and did not submit a filing dissolving the corporation in California when he moved it to New York in 2002. (We assume he paid taxes in New York.) It a sloppy mistake, but an excusable one. Not paying legally-required workers compensation insurance for several years, that is pretty big deal in my book.

Lots of corporations let their registration lapse and don't file dissolution papers. A quick search of Minnesota corporations with "Minnesota" in their name reveal 23 of 40 corporate entities (or trademarked names) on the first page that are "inactive." Inactive means they haven't filed registration renewals or officially dissolved. It's a common oversight.

This is not worth the news coverage it's received.

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