Tax scoff law?

City Attorney Rocky Delgadillo's troubles mounted again Friday when state tax officials disclosed they suspended the license for his wife's consulting business and have no record that she paid taxes on it.

The disclosures prompted Michelle Delgadillo to write a check for an undisclosed sum to the city for failing to pay back taxes, saving her husband the embarrassment of having to pass the prosecution of her case over to the District Attorney's Office.

City Ethics Commission records show Michelle Delgadillo earned between $10,000 and $100,000 a year from her home business from 2002 to 2006.

The California Franchise Tax Board said it had no tax records for her business and suspended the license for her corporation, CRD Inc., in February 2005.

In a statement, Delgadillo's office said Michelle Delgadillo, 36, "reported and paid income taxes" on all of her home-based business income. The city attorney was not available to comment directly and the nature of her clientele was not disclosed.

California Franchise Tax Board spokeswoman Theresa Gray said the business is breaking the law if it is continuing to operate.

"They can't legally do business in the state of California. They need to file forms and come back into compliance," she said.