Maldonado and family business owe more than $4 million in taxes, IRS says

The Maldonado family business, Agro-Jal, is challenging an IRS finding that it underpaid its taxes

Los Angeles TimesMay 31, 2012 

Former Lt. Gov. Abel Maldonado is flanked by daughter Erika and Dr. Rene Bravo in front of the San Luis Obispo County Courthouse on March 23.


SACRAMENTO — Former Lt. Gov. Abel Maldonado and his family's business are embroiled in a legal dispute over more than $4 million in taxes that the IRS says they owe, according to court documents.

Maldonado, a Republican who is running for a congressional seat on the Central Coast, has co-owned a 6,000-acre Santa Maria farm that grows cauliflower, celery and strawberries. In April, he said he was severing his ties to the business, after reports of a battle in tax court over the IRS' contention that he and his wife owed the government $470,000.

But court records reviewed by The Times show that the Maldonado family business, Agro-Jal, is also challenging an IRS finding that it underpaid its taxes by $3.6 million between 2006 and 2008. The case is now in settlement discussions.

In a statement Wednesday, Maldonado said he was looking forward to ending the matter.

"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," he said. Read more at »

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