Capps Maldonado tax controversies

August 3, 2012

Lois Capps

Following an election-cycle challenge that her competitor Abel Maldonado post his tax returns, Congresswoman Lois Capps discovered that for five years she had not reported income from a room she rents out.

Capps discovered the error while placing her returns online as part of her challenge to Maldonado. The unreported income from 2001 through 2005 was paid by one of Capps’ congressional staffers who  rented a room in the congresswoman’s house.

Capps responded to the discovery by filing amended tax returns earlier this year that included the formerly $41,800 in unreported income. Capps paid $8,819 in back taxes because of the undisclosed income.

“Once I realized there was a mistake, I immediately fixed it,” Capps said. “I would hope my opponent would do the same.”

Maldonado is currently embroiled in a legal battle with the IRS over more than $4 million in taxes the IRS says he and his family business owe partially because of allegedly claiming personal purchases as business expenses. Maldonado disputes the IRS’s claims’

In response to Capps’ challenge, Maldonado said he would release his 2011 tax return by June 22. He, however, has still not posted any of his tax returns on his campaign website.

“As soon as we became aware of this earlier this year, Lois immediately filed an amended return and cleared it up right away,” said Capps’ campaign spokesperson Jeff Millman. “The amended returns are on her website and everybody can look at them. And this is exactly why it’s so important for Mr. Maldonado to publicly release his taxes for every year he’s been in public office, to make sure that he has properly paid what he owes.”


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23 Comments

  1. slomike says:

    I think the tepidity in response can be attributed to the tax cheating so many of us have done (“in our hearts”, possibly?). The disdain held for tax laws is probably across party lines. From Capps to Romney and Maldo. “Not a penny more!” And, probably, not every penny owed. Is allowing temporary tax hikes expire also a tax increase?

    (-2) 4 Total Votes - 1 up - 3 down
  2. rogerfreberg says:

    Members of Congress are exempt from many of the laws that you and I must follow… but that isn’t the way it should be.

    She should have known better… and probably did.

    (6) 18 Total Votes - 12 up - 6 down
    • TacomaRose says:

      Does Abel warrant a “probably” and does Mitt warrant a “probably” or does that just apply to the Dems?

      (4) 10 Total Votes - 7 up - 3 down
  3. Liberandos says:

    While being in dispute with the IRS for $4 million certainly doesn’t look good, releasing his tax returns is a non issue.

    If it was such a big deal to everyone then why have Harry Reid or Nancy Pelosi not released their returns for over a decade? Didn’t Congalton say it was a time honored tradition? He must have meant only for republicans, as I didn’t hear his indignation aimed at the two top elected congressional Dems…

    (6) 22 Total Votes - 14 up - 8 down
    • R.Hodin says:

      It’s my understanding that Reid releases his returns annually, meaning that he’s never hidden them. To support that, I seem to recall some real estate deal a decade ago (?) that involved or was revealed by tax filings.

      Romney, on the other hand, is clearly hiding his returns, or re-filing edited (sanitized) versions of their returns, like Maldonado is currently doing. That’s why he’s stalling.

      (-2) 16 Total Votes - 7 up - 9 down
  4. shelworth says:

    If we all write in someone else….

    (0) 8 Total Votes - 4 up - 4 down
    • Slowerfaster says:

      Please do. You will feel good about yourself, and will have two years to gripe about not choosing the eventual winner.

      (-2) 18 Total Votes - 8 up - 10 down

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