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Apr 25, 2008 4:54 pm US/Central
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Franken Accountants Looking Into Tax Problem
MINNEAPOLIS (AP) ―
After a series of revelations about unfiled taxes and government fines involving Al Franken's personal corporation, officials with his Senate campaign said Friday that accountants are working to determine whether the Democrat still owes back taxes in California or anyplace else.
That came after Republicans amped up their attacks on the former comedian and liberal commentator, who is the frontrunner in his party to challenge incumbent Republican Sen. Norm Coleman.
"I don't think Minnesotans want a U.S. senator who doesn't pay their taxes," state Republican Party chairman Ron Carey said at a Capitol news conference. "This is a very serious issue. I pay my taxes, people in the state work hard and pay their taxes."
Carey charged that Franken has been dishonest about his dealings, and said California should investigate Franken's tax compliance.
Spokesman Andy Barr said that when Franken's accountants determine what mistakes were made and whether more taxes are owed, that money will be paid and the information will be made public. Barr accused Republicans of "swinging wildly to connect with something," in what he characterized as an attempt to distract voters from the real issues of the campaign.
"This idea that there was an effort to evade some kind of legal responsibility is nonsense," Barr said. "Every year, Al and (wife) Franni sit down with their accountant, they say, 'Figure out what we owe, and to whom, and pay it."'
Several weeks ago, the Frankens paid a $25,000 fine to the state of New York for failing to carry workers compensation insurance for their personal corporation, Alan Franken Inc. The Frankens established the corporation in order to receive payments for his TV appearances, speeches and other income-generating activities.
The corporation was incorporated in California for a time while the Frankens lived there. Last week, the California Franchise Tax Board said the corporation stopped filing income tax returns in 2003 and owed about $4,700 in interest and penalties. The campaign said the Frankens erroneously believed the corporation had been dissolved in the state.
Republicans pointed out that since 2003, Franken made dozens of speeches and TV appearances in California that likely would have generated income and should have been taxable. In addition, in 2004 and 2006, the Franken corporation submitted paperwork to the tax board indicating it was still intact.
However, Republicans have not been able to document that Franken earned enough money to trigger reporting requirements to the state of California. Nor could Carey rule out the possibility that Franken paid personal income taxes to the state instead of a corporate payment.
Theresa Gray, a spokeswoman for the Franchise Tax Board, said that information is not available to the public.
Barr said those are the questions the Frankens have ordered their accountant to answer.
"Given that there clearly is this confusion, the Frankens have instructed him in no uncertain terms: Bring in whatever outside help is necessary, find out what mistakes were made, get in touch with the relevant state agencies, and resolve them," Barr said.
(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)