It is true that President Trump’s financial affairs have been under the scrutiny of the Internal Revenue Service (IRS) for years. Although the IRS has a mandate to audit the tax returns of the President and the Vice-President, the current audit of Mr. Trump’s financial affairs derives from a series of financial and tax irregularities that date back to 2008.
The triggering event for his current civil tax audit is the claim by Mr. Trump for a whopping $1.4 billion loss in 2008 and 2009. By the reckoning of his tax accountant, Mr. Trump was owed a refund of $72 million in 2010. The calculated loss and subsequent refund also worked to eliminate income taxes going forward. While maintaining the illusion of ongoing wealth, approximately $421 million in debt personally guaranteed by Mr. Trump is coming due within the next several years. No word on what scheme will alleviate or float that hardship downstream to the future.
For any taxpayer, it is not true that you are unable to provide or disclose your taxes during the pendency of a tax audit. Beyond the unreal air of the ongoing Trump tax audit, here are some prime takeaways to consider if your numbers are up for an audit by the IRS:
If you receive a letter from the IRS, speak with an experienced tax lawyer before responding. You can discuss questions you have or review, or go over irregularities in your returns. Preparation at the beginning can save you time, money, and a lot of worry in the end.
The legal team at Robert J. Fedor, Esq., LLC skillfully represents clients responding to allegations of offshore tax violations, tax fraud, or other tax litigation. When you need experienced tax advice locally or internationally, call 800-579-0997 or contact us.