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FRANKEN'S TAX MONSTER?

April 28, 2008

Comedian and Minnesota U.S. Senate Candidate has some tax problems. It appears that a corporation controlled by Mr. Franken failed to file the $800 minimum tax payment for several years, and California says he owes $5,800. Russ Fox explains:

We're not talking big bucks here. The tax owed (including penalties) is $5,800 for not making the required minimum payments from 2003 - 2008. The corporation will likely also the Secretary of State's office $25/year plus a $250 penalty for each year that the required registration form wasn't filed. Once all of that paperwork is filed, and the state income tax returns for 2003 - 2008 are filed, Mr. Franken can dissolve his corporation.

This kind of issue is pretty common. While there may be many reasons not to vote for Mr. Franken, this shouldn't be on the list. California requires anybody corporation registered there to file an annual report with an $800 fee. You have to keep filing until you file formal withdrawal papers from the state. The main lesson from this is that if you ever file a California corporation return, you need to remember to file withdrawal papers once you stop doing business there.

Blog coverage:

The Tax Prof
Russ Fox
Kay Bell

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