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.”


Mitt “n” Maldonado …2 peas in a pod that hangs on the right side of the plant.

Like Leona Helmsley famously said in 1989 …

“We don’t pay taxes. Only the little people pay taxes.”


Capps is now qualified to be in obama’s cabinet.


Moldy-Nachos could release some returns for years previous to the IRS inquiries.

Unless the IRS investigation involves a thorough , comprehensive audit of discovery..

if so, this is much more serious; as the status could be determined to be an ongoing criminal activity covered under the RICO stautes.

This would portend a lenghty Federal trial, at minimum.

Moldy-Nachos should do his prospective constituents a favor, and drop out with what little dignity he can preserve.


I agree. He should drop out, she should drop out and they both should open us to better choices.


I could see “forgetting” to report the income for one year….but there’s no way she “forgot” for four years.

Jack L

I have to agree with you.

Spirit Filled

Take note, when you point a finger there is always a few pointing right back at you. Great example for the rest of you democrats.

God Loves us all, even if we don’t pay our taxes on time.

Booty JuJu

Anyone with two brain cells to rub together knows that:

inflating expenses = fine

hiding income = prison time

The exception being a public official.


So, I think it was the Trib that said that a conservative web site broke this story? Is this the ‘conservative’ website they talk about? I guess if you break a story rather than hide one… you’re ‘conservative?’

Anyway, having taught Federal Income Tax Accounting… let me share something. Hiding income is what landed Al Capone in jail… nothing else. It’s called income tax evasion. On the other hand deducting your parakeet as a business expense will probably not be allowed … but the penalty is to pay the tax, interest and penalties… but you don’t go to jail.

This is more than an oversight or a stupid mistake… it’s just stupid.


I am sure Congresswoman Capps is not short on funds and can afford a decent CPA. And any CPA or EA worth their fees asks questions. I know from acquaintences in the business that there is a tax questionnaire that includes questions such as “Do you receive any rental income?” This is just another indication of persons in power who feel they belong to a different class of people. As for Maldonado, if he is in a tax struggle with the IRS, it is usually advisable to not disclose anything until after the audit is finished. When that is done then we will see what his true colors are.


As I have said before I am not of fan of either candidiate running here. Now with this, we should just scrap both and start over with new on both sides.

In regards to the article, I ask of Lois, do you want me to send you a towel to wipe all that egg off your face?


Neither Capps nor Maldonado win my vote. I would like to see the Washington culture of living like royalty end. No more parties, no more trips on our tax dollars and all politicians from the President down live by the same rules the rest of us do. Mary said it so well: “But if we were transparent you would know what we are doing.”

The Gimlet Eye

If yo keep voting for D’s and R’s you will get what you have always got.

Try a Libertarian for a change.


I agree with you Gimlet and while my philosophy’s are Libertarian, I try and find a conservative voice closest to that of my opinion with a chance to get in. It is not always easy.


We need to go to a no party system and vote only for the candidate, with 4 year term limits for life in any government capacity.