I’m good enough, I’m smart enough … and doggone it, I owe a boatload of taxes!
Minneapolis,MN (Startribune.com) By Patricia Lopez: DFL U.S. Senate candidate Al Franken, frontrunner in the race to unseat Republican U.S. Sen. Norm Coleman, owes $70,000 in back taxes in 17 states, where he earned income going back to 2003.
Franken on Tuesday told the Associated Press that he never intended to avoid paying taxes and that on the advice of his accountant, had paid taxes to the city and state where he lived.
Franken has been under fire since early March, when a Republican operative revealed that Franken had failed to pay workers’ compensation and disability premiums for employees of his New York-based corporation, Alan Franken, Inc., between 2002 and 2005.
New York state officials had tried to collect the back premiums for four years, resorting to a collection agency and even filing a summary judgment against Franken in state Supreme Court last May for $25,000.
Franken said he was unaware of the state’s numerous attempts to contact him and finally was forced to acknowledge his error and make restitution earlier this month.
Last week, Franken was found to owe the state of California $4,740 for his failure to file corporate tax returns between 2003 and 2007.
Franken’s campaign staff initially said Franken had dissolved the California entity in 2003, producing an unsigned letter on blank paper, dated September, 2003, in which a tax accountant said the company would “no longer be doing business in California.”
Franken has had numerous engagements in California during those years, and in his U.S. Senate Financial Disclosure Report, filed May, 2007, stated that he does business not only in California, but in New York, Wisconsin, Massachusetts, Delaware, Michigan, Kentucky and elsewhere.
Coleman, asked about today’s news, said: “I’m certainly troubled by these admissions. I would hope that Mr. Franken would continue to come forward and continue to be candid as to the nature of these problems.
“I serve on the Small Business Committee. I represent thousands of small-businessmen and -women in Minnesota. Those folks pay their taxes and meet their obligation — that is the expectation and so certainly these admissions by Mr. Franken are troubling.”
Staff writer Conrad Wilson contributed to this report.
Copyright 2008 - Star Tribune
Editor’s note: I put this in tonight only because I used to live in Minnesota for 25 years… Norm Coleman looked like he was going to be ousted by Franken. However, his troubles lately have cast doubt on his ability to unseat Coleman.
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Thanks for posting this. The thought of Al Franken being in the Senate makes me throw up in my mouth a little bit. Maybe now there is hope for Coleman.
Jay O.s last blog post..Jeremiah Wright is not Just Obama’s Problem
I actually don’t believe this will be fatal to Franken. Norm Coleman is pretty well despised right now in Minnesota…. I don’t see him making it over the hump…
A good friend of mine used to be on Coleman’s staff… and I remember Coleman’s turnaround of St. Paul. Quite honestly - that place would be a crater and NOT the site of the GOP Convention this year, if Mayor Coleman hadn’t turned that place around… they should have built a frickin statue to him in the city… it went from being on the verge of implosion to a city that is vibrant. Not as active as Minneapolis mind you - but still a great city.
It won’t be enough tho - Minnesota voters are fickle. While Mark Kennedy was no great match for Klobuchar… she does represent the typical DFL majority voter in Minnesota. Franken also is in that vein - thus - I expect he’ll do well… despite his Air America, taxes, and other business problems…
Remember - this is the same state that elected Jesse Ventura…. a guy who said “You’ve never hunted till you’ve hunted man…” As Lewis Black commented - the election of Jesse Venture demonstrated that Minnesotans are NOT recreational drug users…
… but as Gary Kellior says - the men are strong, the women are beautiful, and all the children are above average….
… well he got that part right.
Today from AP - Franken claims it’s all just a big misunderstanding…
ST. PAUL, Minn. (AP) — Senate candidate Al Franken, dogged by accusations that he failed to file tax returns in California, said Tuesday he will pay about $70,000 in back income taxes in 17 states dating to 2003.
Most of the income at issue was from speeches and other paid appearances by the comedian-turned candidate, who said he got bad advice from his accountant but takes responsibility for the errors.
The Minnesota Democrat told The Associated Press that he and his wife, Franni, “paid taxes on every cent of income we ever had.” He said that during the years in question, he followed the accountant’s advice and paid his entire income tax bill to the city and state where he lived at the time. He lived in New York City from 2003-05 and Minnesota in 2006.
“What happened is our accountant made a mistake, and all of these are repercussions of that same mistake,” said Franken. “His mistake was not understanding the law, the obligation to pay these state taxes.”
Franken said his finances became more complicated when he branched out from “Saturday Night Live” and started writing books and making speeches around the country.
His communications director, Andy Barr, said none of the 17 states attempted to contact Franken or his accountant seeking the unpaid personal income taxes.
Franken said once the payments to the states are settled, he would seek retroactive credit from his states of residence since much of the income taxes he paid to them was supposed to go instead to the 17 other states.
Franken has been preparing for a tough fight against incumbent Sen. Norm Coleman, R-Minn., but his campaign has been sidetracked in recent weeks by bookkeeping errors related to his private corporation, Alan Franken Inc.
The campaign said last month it would pay a $25,000 fine to the state of New York for failure to carry workers’ compensation insurance there.
The state Republican Party swiftly issued a statement in which it said Franken’s “admission that he has violated laws in 17 different states since 2003 is only the beginning of the story.”
Party chairman Ron Carey said Franken’s business activities “must have a full, and complete public airing if he is to retain any credibility as a candidate for public office.”
In a conference call with reporters, Coleman called Franken’s admission troubling. “Paying taxes is an obligation that I think Minnesotans expect to be adhered to, and that Minnesotans do,” Coleman said.
Franken said he’s releasing the information to be transparent about his mistakes. He said he “would like to get back to talking about the lives of the people of Minnesota and the issues this campaign is about.”
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And the plot thickens…
I usually use MNPublius as kind of a barometer as to where the Minnesota left is at in terms of politics….
This post appeared today:
http://mnpublius.com/2008/04/franken-clearing-up-tax-issues/
I find it interesting - and perhaps not so discouraging anymore for Coleman - if this is how the DFL are reacting to Franken’s missteps… suggests that perhaps being this apologetic this early means that the DFL is pretty wedded to Franken and they’re having “buyers remorse.”
Just like a dog gets freaked out before a storm… I’ve noticed fellow Democrats seem to be able to ferret out quickly when one of their own will suffer defeat…
… the most encouraging thing yet I’ve seen for Sen. Coleman.
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