GOP Congressional Candidate O'Donoghue in Trouble with IRS

Bruce O'Donoghue, one of the seven Republicans vying to unseat U.S. Rep. Alan Grayson, D-Orlando, has tax problems.

The IRS slapped a $306,975 lien on O'Donoghue's company for failing to pay his 2009 payroll taxes, WDBO reported.

Admitting "the timing couldn't have been worse," O'Donoghue said he was the victim of a former employee who stole from him. But WDBO reported that O'Donoghue would not name the employee and did not file charges.

O'Donoghue, who owns Control Specialists Co., which installs traffic signals in crosswalks, said he's trying to negotiate a settlement with the IRS.

Despite his arrearage with the tax man, O'Donoghue has put $132,000 of his own money into his congressional race. He has raised more than $378,000 through contributions and reported having $298,000 on hand.