According to people, two separate New York state fraud investigations against President Trump and his business (one criminal and one civil) have expanded to include millions of dollars in tax cuts on consulting fees. .. Some of them seem to have gone to Ivanka Trump. I have knowledge of the problem.
The criminal investigation by Manhattan District Attorney Cyrus R. Vance Jr. and the civil investigation by State Attorney General Letitia James are conducted independently. However, people said the two offices have issued subpoenas to the Trump organization in recent weeks for fee-related records.
The subpoena is the latest step in two investigations by the Trump organization, highlighting the legal challenges awaiting the president’s resignation in January. There is no sign that his daughter is the focus of either investigation. It was blamed by the Trump organization as a political motive.
This development follows Mr. Trump’s recent New York Times survey of more than 20 years of tax records, and he pays little or no federal income tax most of the year, primarily due to his chronic business losses. I found that I didn’t pay.
In one revelation, Mr. Trump reduced his taxable income by deducting a fee of approximately $ 26 million from an unidentified consultant to cover a number of projects from 2010 to 2018.
Some of those fees seem to have been paid to Mr. Trump, the Times found. In a 2017 disclosure she submitted when she joined the White House as presidential adviser, she reported receiving a total of $ 747,622 payments from a co-owned consulting firm. Vancouver, British Columbia.
The subpoena focused on TTT Consulting LLC, the fee paid to the company for her disclosure, and was only a fraction of $ 26 million, according to someone with knowledge of the matter. The name of the company seems to refer to Mr. Trump and other members of her family.
Mr. Trump was an executive officer of the Trump company that made the payment. In short, she seems to have been treated as a consultant while working for the company. Companies can deduct professional compensation, but the Internal Revenue Service requires that consulting arrangements be rational on a market basis and “normal and necessary” to run a business.
“This is just the latest fishing expedition in an ongoing attempt to harass the company,” Alan Garten, legal adviser to the Trump Organization, said in a statement.
“Everything was done in strict compliance with applicable law and with the advice of attorneys and tax professionals,” he added. “All applicable taxes were paid and no party received an unreasonable benefit.”
The IRS aims to avoid taxes and may refuse attempts to amortize consulting fees if it does not reflect business-to-business relationships. It’s unclear if the IRS has ever asked the Trump organization about its practices. The tax incentives that Mr. Trump deducted from the company’s federal return fee will also be reflected in New York’s return and may benefit the state.
The district attorney and attorney general’s office declined to comment. Mr. Trump’s lawyer did not return the call for inquiries.
Little details have been published about the district attorney’s investigation, the only known and active criminal case involving Mr. Trump. Mr. Vance’s office began investigating more than two years ago and is a Trump organization in Hush Money paid during the 2016 presidential election to pornographic film actress Stormy Daniels, who initially claimed to be related to Mr. Trump. Focused on the role of.
Investigations have been stalled since last fall after the president filed a proceeding to prevent tax returns and other financial record subpoenas.
The court battle will take place in the United States Supreme Court for the second time, and a ruling is expected shortly. The prosecution said in court filings that the investigation extended far beyond hash money and focused on many potential financial crimes such as insurance and banking fraud, tax evasion, and large-scale theft. Suggests.
Mr. Trump said the investigation was part of “the biggest witch hunt in history.” Both Vance and James are Democrats.
Although James’s civil investigation focuses on the Trump Organization’s business practices, she can make criminal referrals and prosecute herself for authority over Governor Andrew M. Cuomo’s administration.
Her investigation began last March, with former presidential attorney Michael D. Cohen in Congress and Mr. Trump swelling assets in financial statements to secure a bank loan and elsewhere to reduce taxes. He said he undervalued his assets. In August, the Attorney General’s office asked the judge to force the president’s son, Eric Trump, to testify in an investigation, which he did last month. Eric Trump is the Executive Vice President of The Trump Organization and is responsible for his daily work.
Investigators in James’ office scrutinized various deals. One of them was the 2010 financial restructuring of Trump Hotel & Tower in Chicago, where Fortress Credit Corporation exempted more than $ 100 million in debt. The Attorney General’s office, in a court document filed in August, is an effort by the Trump Organization to determine how the money was reflected in tax returns and declared as income, as required by law. Said that it interfered. A Times analysis of Mr. Trump’s financial records found that he evaded federal income tax on almost all of his debt.
The Attorney General’s office also received a large tax deduction to promise to protect land where development efforts have stagnated, including real estate in Seven Springs, Westchester County, New York. Is checking to see if they used a bulging rating
“The results of the election will not affect our investigation,” James said in a television interview this month. “No one is beyond the law. We have facts and evidence that tell us. Just follow it wherever you lead. “
Mr. Trump frequently attacked the latest James of the New York Attorney General in which he collided. James presided over the final stages of the investigation that led to the closure of the scandal-damaged charity foundation. She is also aiming to dissolve the President’s main ally, the National Rifle Association.
“They always seek crime and sue everything,” he said. Tweet last yearAlthough his own proceedings are legendary. His campaign and its allies have recently filed more than 20 proceedings with the aim of overturning the outcome of the elections he lost this month.
Examination of the fees apparently paid to his eldest daughter can cause even more vitriols from the retiring president. And it raises the question of whether the payment was a tax deduction method to compensate his children or whether he would avoid the gift tax incurred from transferring wealth to the children. 2018.
This is not the first investigation from the Attorney General’s office involving Mr. Trump’s children. As part of a settlement that led to the closure of the president’s charity, board members Trump and her brothers were “trained on the obligations of charity officers and directors to avoid illegal activity. According to the terms of the agreement, they oversaw the Trump Foundation and were held again. “
In September, the president’s son called the investigation “continuous political revenge,” after a state judge rejected a claim from Trump’s attorney to further delay Eric Trump’s deposit.
Trump tax amortization involved in two New York fraud investigations
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