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Abel Maldonado’s mounting tax troubles

May 31, 2012

Abel Maldonado

Central Coast  Republican congressional candidate Abel Maldonado and his family business are embroiled in a legal battle with the IRS over more than $4 million in taxes the IRS says they owe partially because of allegedly claiming personal purchases as business expenses. [LATimes]

In April, the former  Lieutenant Governor said he was severing ties with the family farm he owns a third of in Santa Maria after court records showed he and his wife owed the government $470,000 in unpaid taxes.

In addition, The Times reviewed court records and discovered the IRS says the Maldonado family business, Agro-Jal, also underpaid its taxes $3.6 million between 2006 and 2008. The Maldonados are currently in settlement discussions with the IRS.

“This dispute involves a lot of very complex accounting issues that other small businesses are attempting to navigate on a daily basis…. I want this resolved, and the second we get a bill that correctly defines our tax liability, it will be paid,” Maldonado said in a statement on Wednesday.

While the bulk of the multimillion-dollar dispute stems from complex accounting methods and questions about how to deduct the cost of a cooling facility and crates and boxes used to ship produce, the IRS also contends the Maldonados used the business to pay for items such as thousands of dollars in renovations to Able Maldonado’s home and a possible fundraiser for his campaign for state Senate, where he served before becoming lieutenant governor.

At the time, Maldonado listed himself as Agro-Jal’s controller/auditor on his state-required financial filings, The Times said.

The IRS has challenged deductions by Agro-Jal that appear to show no apparent benefit for the business. They included $20,000 worth of memberships at the Santa Maria golf club, work on a residence at a resort community near Palm Springs, and the cost of two horses on the farm.

The IRS also claims about a dozen pickup trucks were driven for personal use by company officers including Maldonado’s father, mother, and sister.

In July 2010, the Maldonado family challenged the IRS claiming that Agro-Jal’s deductions were legal and that the IRS had vastly inflated its tax bill.


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Let’s see, Dad taught Abel to work hard, and Mom gave him values. Abel’s done very well then, working hard to enrich his family first while screwing everybody else. Sounds like a good fit for D.C. Maybe that’s why Roger’s giving him the thumbs-up!


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This is the guy who preaches family values. The family that cheats on taxes stays together….is that it. I wonder if our values boy here has found a way to claim his 2 year old by his mistress as a tax exemption. Just the family values we need in DC. I thought we had enough tax dodging rich-boy adulterers in DC already….Go Chris Mitchum…..


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Let those without sin cast the first stone. Ever cheat even a little bit on your taxes?


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Actually, Abel Maldonado is the candidate of the squishy establishment Republicans. The only good, actually great, alternative is Chris Mitchum, a true conservative Republican who has been endorsed by the Howard Jarvis Taxpayers Association. Enough said. I have heard him speak a few times and he is a breath of fresh air. Abel has had tax problems for years, problems that predate his political career. They are just finally catching up with him.


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Your endorsement of Mitchum has helped me decide not to vote for him . I consider the Howard Jarvis Taxpayers Foundation to be as big a source of our malfunctioning government as any free-spending democratic initiative. I do question Abel’s personal character but politically, he is a viable alternative to Lois Capps.


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You know…


It is always interesting to see how all these ‘terrible’ accusations and troubles happen just before election time. I am sure that when the election is over… things will be seen very differently.


This is why we are voting for Abel!


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ROFLOL


That’s the funniest thing I’ve heard this week — thanks, Roger


hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah


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Aman. A shining star amidst the fallen. Thank you Lord for honest upright people on the right. Democrats will raise the amount of aid to poor people thinking that it will make the problem go away. Ya, that’s done it so far. Give me a break. I can understand giving single mothers and individuals that have been hurt a helping hand. But all these able bodied men? Give healthy men a job. Helps the self-esteem when a man brings home the bacon rather than sitting around waiting for the food stamps to arrive.


I know, I was injured on the job and had to get food stamps. It was very embarrassing for my family. I got a job from home after about 3 months. We didn’t have much coming in but I earned it. We paid the house payment and ate. My family lived on my earning not on gifts. Too much pride to take it for long.


God Bless


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pride cometh after a fall


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The IRS reminds me of the SS. Told a friend of ours they owed $84,000 in back taxes. Turned out they owed $3,800. They gavethem so much trouble they almost left the country. Oh well paid attorneys about $12,000 and the IRS $3,800. Ass holes.


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You are comparing the murderers of millions, to a bunch of tax collecting governmental accountants?


Weak sauce, for sure.


Everyone needs to pay there share, Everyone even Abel.


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Behind those “tax collecting governmental accountants” stand a horde of increasingly powerful government law enforcement personnel. The comparison is not that far off base.


And yes, to the extent that their claims are correct, Abel does need to pay his fair share.


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My point is he has a right to fight the bill if he wants. Just like my friend did. I have also had to fight them a few times. When you have receipts you have a chance.


You are right about people paying their taxes but there are many that pay even what they don’t owe because they are afraid. Happens all the time. If you are not afraid you are a fool.


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There have been tax issues with UnAbel for years. Doubt very much that this is some sort of political vendetta. Despite his delusions to the contrary, UnAbel’s not any more

credible as a politico than he is as an accountant.


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PS The Maldonado family owes more in federal taxes than most people will earn in a lifetime. How much do they still owe the state?


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Maldonado is ready, will and abel to screw the government and the people of this great nation. What balls for a public servant. That’s what makes him perfect for Congress!


Vote Abel for Congress, NOT!


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You’re guessing. There has been so many crooks on both sides of the aisle that you can’t tell which is which. Vote them all out. Starting new would be nice.


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I interpret this to mean that his candidacy has been vetoed by some higher power, i.e., a rival in the party who does not want him to run for this post. This mover and shaker has the power to sick the IRS on Maldonado.


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It is more likely to be an operative in the Democratic Party who does not want to see Capps opposed by a relatively moderate Republican. The Democrats still have control of the Executive Branch in DC and that is the most direct line to the IRS.


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I agree. Lois Capps is concerned she may lose her seat. This smacks of Chicago-style politics.


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