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Probes of Trump taxes carry potential for millions in fines

Published

6 years ago

7 minute read

NEW YORK — Though President Donald Trump insists he did nothing wrong on his taxes, experts say he could be on the hook for tens of millions of dollars in civil fines if state and federal authorities substantiate a New York Times report that found he and his family cheated the IRS for decades.

The statute of limitations for bringing criminal charges has long run out, but civil cases have no such limits, and the financial penalties could be staggering. Civil fraud charges for intentionally underpaying taxes, as the Times alleged the Trump family did, could include a penalty of up to 75 per cent of the unpaid federal taxes and double the unpaid state amount, experts said.

The penalties “could be substantial, and if the allegations are proven in court, they should be levied,” said Norman Eisen, chairman of Citizens for Responsibility and Ethics in Washington and former chief ethics counsel in the Obama administration.

The New York tax department said it is studying the Times’ 15,000-word report and “vigorously pursuing all appropriate avenues of investigation.” New York City also said it would investigate. A spokesman for the Internal Revenue Service declined to comment.

Trump tweeted that the newspaper did “a very old, boring and often told hit piece on me.”

The White House dismissed the report as a “misleading attack against the Trump family by the failing New York Times,” but spokeswoman Sarah Huckabee Sanders said the newspaper got one thing right: Trump’s father not only did deals with his son but heaped praise on him by saying “everything he touched turned to gold.”

A lawyer for Trump, Charles J. Harder, told the Times that there was no “fraud or tax evasion” and that parts of the report were “extremely inaccurate.”

The Times said Trump received at least $413 million from his father over the decades, much of that through dubious tax manoeuvrs, including outright fraud. The report contradicts Trump’s portrayal of himself as a self-made billionaire who started with just a $1 million loan from his father.

Taxe law experts expressed skepticism that the IRS would mount any civil investigation. The main reason, they said, is that the Times account says IRS officials have already conducted extensive audits of the estate left by Trump’s parents.

“That ship has sailed,” said Mark W. Everson, who was IRS commissioner during President George W. Bush’s second term and is now vice chairman of AlliantGroup, a Houston-based corporate tax advisory firm. He added: “I would be concerned were the service to reach back that far in time, given that it could only be doing so because of the person’s current position.”

In addition to manoeuvrs aimed at avoiding estate taxes, the Times reported that the president’s father, Fred Trump, paid no federal gift taxes on seven buildings that were transferred to Donald Trump and his siblings.

That opens another possible avenue of investigation, said Beth Shapiro Kaufman, a Caplin & Drysdale tax lawyer and a former Treasury official.

There is typically a three-year statute of limitations on federal gift inquiries, but that doesn’t apply when a gift is made without being reported to the government. And if the donor is dead, the IRS would have the ability to go after the beneficiary of the gift for unpaid taxes, Kaufman said.

In New York, tax officials had already been looking into whether Trump or his charitable foundation misrepresented their tax liability. State law would allow them to seek civil penalties if they can show someone intentionally sought to evade taxes, even decades ago. Those who lose such cases are often required to pay their back taxes along with penalties.

In August, the state subpoenaed former Trump attorney and “fixer” Michael Cohen as part of the probe.

The state investigation follows Democratic state Attorney General Barbara Underwood’s lawsuit alleging Trump illegally tapped his Trump Foundation to settle legal disputes, help his campaign for president and cover personal and business expenses, including the purchase of a 6-foot portrait of himself for $10,000.

Eisen said that if Democrats win the House in November, they will have the investigative muscle and subpoena power to scour Trump’s latter-day tax records and see whether the tax schemes alleged by the Times have continued.

Former IRS Deputy Commissioner Mark E. Matthews cautioned that the IRS would not be obligated to conduct an investigation if Congress turned up new evidence of continuing tax manoeuvrs, but added: “The agency knows where its bread is buttered. If it gets to the point of a full committee report with new evidence, somebody at the IRS will take a hard look. But there’s no guarantee they’d go beyond a look.”

The federal tax code’s statute of limitations for criminal cases is typically no more than six years, legal experts said. To bring criminal charges, investigators would have to find a continuing tax fraud conspiracy that stretched into recent years, they said.

Building such a case — similar to the charges that former Trump presidential campaign chairman Paul Manafort pleaded guilty to last month — would require overwhelming recent evidence, buttressed by new documents and strong testimony from Trump insiders, the experts said.

___

AP writers David Klepper in Albany, N.Y., Michael Sisak in New York and Marcy Gordon in Washington contributed to this report.

Bernard Condon And Stephen Braun, The Associated Press

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Border Patrol Agent Lashes Out At Biden-Harris Admin, Calling Job ‘Migrant Concierge Service’ Amid Border Crisis

Published on September 14, 2024

By

From the Daily Caller News Foundation

By Mariane Angela

The border agent stated he is prepared to risk his career to bring attention to what he views as grave mismanagement and potential dangers posed by current border policies.

A Border Patrol agent criticized the recent changes in his role under the Biden-Harris administration, condemning it as transforming into a “migrant concierge service,” according to The New York Post Friday.

Zachary Apotheker, who joined the force in 2020, voiced his frustration over the shift in his duties under the Biden administration from intercepting drug traffickers and apprehending illegal entrants to what he now sees as aiding migrant entry, in an interview with the NYP. Apotheker highlighted concerns about security and vetting under President Joe Biden and Vice President Kamala Harris, noting that over 8 million migrants have crossed the southern border since January 2021, including members of the Venezuelan prison gang, Tren de Aragua.

“I don’t want to bring people into the country. That’s not what I signed up to do,” Apotheker told NYP. Apotheker’s distress is further compounded by over 1.7 million illegal migrants who have evaded capture since Jan. 2021, as he shared encounters with victims of migrant-committed crimes, naming individuals and emphasizing the personal toll on him.

“I’m an apolitical person and I just want to do my job and protect this country,” the agent said, the NYP reported. “When I see people from another country coming here, getting resources beyond what the American citizen can get, that’s where I have to draw the line. And then they’re going out and committing crimes and we’re still not removing them and American citizens are being killed, women are being raped.”

Apotheker and multiple Border Patrol sources have raised concerns to the NYP about the inadequate documentation for unaccompanied migrant children under 14, including missing biometric data, complicating their safe relocation to families or sponsors in the U.S. He highlighted a backlog in the immigration system, noting that 291,000 migrant children have been released in the U.S. without court dates, with an additional 32,000 failing to appear for their scheduled hearings.

The border agent stated he is prepared to risk his career to bring attention to what he views as grave mismanagement and potential dangers posed by current border policies. “However bad you think it is now, it’s only going to be worse,” he warned.

The White House and Border Patrol did not immediately respond to the Daily Caller News Foundation’s request for comment.

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Rumored deal with Bloc Quebec party could keep Trudeau Liberals in power, stave off election

Published on September 10, 2024

By

From LifeSiteNews

By Anthony Murdoch

“The federal government does not have a mandate to bargain with Quebec separatists at the expense of Alberta, the West and the rest of the country”

The possibility of an early Canadian election may not come to fruition after Bloc Québécois leader Yves-Francois Blanchet hinted that an alliance between the separatist party and the Liberals under Justin Trudeau could become a reality.

Rumors began to swirl that a Bloc-Liberal deal could happen after Bloc House leader Alain Therrien said Sunday that the party’s “objectives remain the same, but the means to get there will be much easier.”

“We will negotiate and seek gains for Quebec … our balance of power has improved, that’s for sure,” he said, as reported by the Canadian Press.

Therrien made the comments in light of the possibility of a federal election taking place before fall 2025 after New Democratic Party leader Jagmeet Singh pulled his official support for Trudeau’s Liberals last week.

Late last month, Conservative Party leader Pierre Poilievre called on Singh to pull his support for Trudeau’s Liberals so that an election could be held.

Therrien also noted that the NDP pulling its support of the Trudeau Liberals has created a “window of opportunity” that his party may exploit. The Canadian Press reported that a person close to the Bloc party said directly that the NDP had in essence handed the party the balance of power.

As it stands now, the Bloc has 32 seats to the NDP’s 24, which is more than enough to prop up the Liberals, who have 154 seats.

As for Blanchet, he told the media on Monday that he was feeling “good” about his party’s newfound power. He then took a shot at Poilievre, saying he is more or less like Trudeau. “There are plenty of issues on which (Poilievre’s) in the same position as Justin Trudeau,” Blanchet said.

“Show us that you’re different, Justin Trudeau, apart from being against abortion, then we’ll see what you have to offer,” he said.

While most Conservative MPs are pro-life, Poilievre supports abortion and has a poor track record when it comes to life and family issues, with Campaign Life Coalition having given him a “red light” rating.

News of a possible Bloc-Liberal deal to keep Trudeau in power drew the immediate ire of Alberta Premier Danielle Smith.

“The federal government does not have a mandate to bargain with Quebec separatists at the expense of Alberta, the West and the rest of the country,” she wrote Monday on X. “If the Liberals go down this path, we need an election to be called immediately.”

On Tuesday, Blanchet responded to Smith’s comments to reporters by saying he found her remarks “funny,” adding that “Canadians are suddenly very interested in us.”

As for Trudeau, his woes continue to mount. LifeSiteNews recently reported how national elections campaign director for Canada’s federal Liberal Party announced he was stepping down because, according to sources close to the party, he does not think Trudeau can win a fourth consecutive election.

Recent polls show that the Conservatives under Poilievre would win a majority government in a landslide in an election held today. Singh’s NDP and Trudeau’s Liberals would lose a massive number of seats.

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