The quasi-public State Compensation Insurance Fund continues to do business with a company that lost its state license nearly eight months ago.
Wisconsin-based Runzheimer International Ltd., which handles vehicle mileage reimbursements for SCIF employees, lost its license for failing to a file a tax return in 2008. Runzheimer accountants said they have been trying to resolve the issue for the past two years. They said their letters to California's Franchise Tax Board have gone unanswered.
The accountants said the company switched its organizational structure in 2008 and did file state income taxes for 2008, 2009 and 2010 under a new name -- Runzheimer International Holdings Company Ltd. They said the business license never should have been suspended. Runzheimer's vice president of finance, Greg Myles, did not respond to calls on Monday seeking a comment on the issue.
Tax board spokesman Dan Tahara said because of disclosure laws he could neither confirm nor deny any communication with Runzheimer beyond the fact that the company did not send in a tax return in 2008.
Meanwhile, SCIF still is relying on a business that tax board spokesman John Barrett said is not legally allowed to do business in the state, has lost rights to the "Runzheimer" name in the state and is still liable for taxes. SCIF spokeswoman Gina Simons did not immediately respond to a request for comment.
It's unclear if Runzheimer has contracts with any private companies in the state, but Runzheimer's Larry Fredrich said no other public agencies in the state had a deal with the company. Runzheimer contracts with the federal Internal Revenue Service to help the agency set federal mileage reimbursement rates.
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