When New York prosecutors finally examined former President Donald J. Trump’s federal tax returns, they lost millions of dollars and gave a true how-to guide to getting rich with little or no income tax. You will discover.
However, finding evidence of a crime depends on other information not found in the actual return.
U.S. Supreme Court on Monday Paved the way Manhattan District Attorney Cyrus R. Vance Jr. to obtain Mr. Trump’s federal income tax return and other records from an accountant for eight years. The decision concludes a lengthy court battle over access to prosecutors’ information.
Last year’s New York Times provided a more or less preview of what Vance was waiting for. Acquire and analyze income tax data over decades For Mr. Trump and his company. The tax record provides an unprecedented and highly detailed view of Mr. Trump’s financial Byzantine world. Mr. Trump has been bragging and trying to keep secrets for years.
According to a Times survey, the former president reported a business loss of hundreds of millions of dollars, years after not paying federal income tax, and faced an audit by the Internal Revenue Service for a $ 72.9 million tax refund claimed 10 years ago. doing.
Above all, records revealed that Mr. Trump had just paid Federal Income Tax $ 750 In my first year as president, I have had no income tax for 10 of the last 15 years. They also showed that he had canceled a $ 26 million “consulting fee” as a project cost between 2010 and 2018. Part of it seems to have been paid to Ivanka Trump, the eldest daughter who was a salaryman of the Trump organization.
The legitimacy of Mr. Trump’s reduced taxable income fees since then Become a subject About Mr. Vance’s investigation and another civil investigation by New York Attorney General Letitia James. James and Vance are Democrats, and Trump has sought to portray multiple inquiries as political motivation while denying cheating.
Mr. Vance’s office has issued subpoenas and conducted interviews in recent months. Various financial problemsA $ 130,000 hash to Stephanie Clifford, a stage-named pornographic film actress named Stormy Daniels, during a 2016 campaign to see if the Trump Organization misrepresented the value of an asset when taking a loan or paying property taxes. Includes whether you paid the money and so on. The interviewee was an employee of Deutsche Bank, one of Mr. Trump’s biggest lenders.
For all their exposures, Mr. Trump’s tax records also focus on what they don’t show, including new details about payments to Clifford, which was the first focus of Mr. Vance’s investigation that began two years ago. Deserves.
Tax returns represent self-reported accounting of income and expenses, for example, whether legal costs associated with the payment of hash money have been charged as tax amortization, or money from Russia has ever been charged. Moved Mr. Trump’s bank account, which often lacks the specificity needed to know if it was done. The lack of that level of detail underscores the potential value of other records that Mr. Vance accessed in a Supreme Court ruling on Monday.
In addition to tax returns, Mr. Trump’s accountant, Mothers USA, must also create the business records and communications with the Trump organization that form the basis of those returns. Such material may provide important background and background to the decisions made by Mr. Trump or his accountant when preparing to file a tax return.
John D. Fort, a former chief of the IRS Criminal Investigation Division, said tax returns are a useful tool for revealing leads, but can only be fully understood by additional financial information obtained elsewhere. Stated.
“This is a very important personal financial document, but it’s just part of the puzzle,” said Fort, Washington’s Certified Accountant and Head of Research at Kostelanetz & Fink. “What you find in return should be followed up with interviews and subpoenas.”
Nonetheless, Mr. Trump’s Times survey of returns reveals many misleading allegations and falsehoods that he has spread about his wealth and business insights.
Many claims of generous philanthropy by Mr. Trump have collapsed At the time of examination Of his tax return, which questioned both the amount of the particular donation and the overall nature of the donation subject to his tax deduction. For example, of the approximately $ 130 million charitable deductions he has claimed since 2005, $ 119.3 million is an estimate of a pledge not to develop real estate after a planned project fails. Turned out.
At least two of these land-based charitable deductions related to golf courses in Los Angeles and West Chester’s real estate called Seven Springs are in a civil investigation by James looking to see if the valuation supports them. The tax credit, which is known to be part, has swelled.
In a broader sense, tax records, as a candidate and as president, report his overall finances by reporting glorious figures for golf courses, hotels, and other businesses based on the total income he collects each year. Showed how it provided the distorted view of. The actual revenue, minus losses and costs, was much darker. In 2018, Mr. Trump’s official tax return generated $ 434.9 million in revenue, while his tax return declared a total loss of $ 47.4 million.
And such a disastrous number was not unusual. Many of Mr. Trump’s golf courses, a central element of his business empire, reported a loss of $ 315.6 million between 2000 and 2018, but licensing his name to hotels and resorts. The income from the resort was almost exhausted by the time it entered the White House. In addition, Mr. Trump has hundreds of millions of dollars in loans, many of which he personally guarantees. The deadline is coming In the next few years.
The Times survey also faces a potentially catastrophic IRS audit focusing on the huge refunds claimed in 2010 to cover all federal income taxes and interest he paid between 2005 and 2008. I found that there is. Mr. Trump repeated ongoing audits as the reason he was unable to release his tax return after he first said he would, even if nothing prevented him from doing so about the audit process. I quoted.
If the IRS ruling ultimately opposes him, Mr. Trump will consider more than $ 100 million, taking into account potential interest and fines, in addition to numerical state and local tax refunds. In his federal filing, you may be forced to repay.
Russ boutonner And Sae Yamamoto Craig Contribution report.
Trump’s tax returns are not the only important record that prosecutors get
Source link Trump’s tax returns are not the only important record that prosecutors get