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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump family's massive tax con job has been hiding in plain sight for years. And it could cost them
Suzanne Garment Trump family's massive tax con job has been hiding in plain sight for years. And it could cost them millions.
The Trumps may soon wish they had sought their real estate fortunes anywhere except the liberal precincts of New York.
Oct.08.2018 / 11:58 AM EDT
There is no statute of limitations on the complicated con job that The New York Times laid out in its huge, document-laden investigation of Donald Trumps finances.
Trump and his father, real estate developer Fred Trump, used some accounting techniques that look a lot like civil tax fraud. If it is, that could lead to payments of up to 75 percent of the amount underpaid. Trump and his siblings could be forced to surrender, or disgorge, many millions of dollars perhaps hundreds of millions in back taxes, fines and penalties to New York state alone.
The Times describes decades of what is politely called creative accounting. Though the means were complicated, the purpose wasnt: Fred transferred $1 billion to his children, The Times estimates, and paid roughly 5 percent in estate taxes instead of the then-standard 55 percent.
How did they do this? First, the Trumps dramatically undervalued their property, which low-balled the amount of tax they had to pay. They also allegedly devised a whole other kind of fraud, according to The Times, padding virtually all maintenance invoices, so that Fred could list payments to his children as business expenses instead of taxable gifts.
These inflated bills also allowed the Trumps to increase the rents that they charged the low-income tenants in their government-subsidized housing developments. Tenants who could ill afford the rent hikes.
Just as serious if not qualifying as civil tax fraud is the fraud Donald Trump perpetrated on the American public. As a stripling golden-haired playboy, Trump presented his fathers wealth as his own. He then used this claim to create an inflated impression of his own success and, ultimately, made it the basis of his presidential campaign.
Something about having a large amount of money causes many wealthy people to decide the government shouldnt get any of it. Tax advisers routinely help clients toward this goal mainly in ways that are legal. They see to it that their clients make annual gifts to their children and grandchildren up to the amounts exempt from gift taxes. When the clients pass to their eternal reward, these amounts are then excluded when tallying estate taxes.
more...
https://www.nbcnews.com/think/opinion/trump-family-s-massive-tax-con-job-has-been-hiding-ncna917146
Grasswire2
(13,570 posts)No one seems to answer this, or even ask it!
dumbcat
(2,120 posts)although to the NYT, and many of us, it may "... look a lot like civil tax fraud...". But it's not.
The rich use a lot of legal loopholes to avoid paying taxes. We may not like it, but the laws are written by the rich. It may look like fraud to us, but how many of us read the actual tax statutes? Most of us can't even figure out the forms for our own taxes without help.
Salviati
(6,008 posts)seems like a pretty much cut and dried case of tax fraud.
Grasswire2
(13,570 posts)I can't see how the IRS let this go by. But I don't want to believe there was any malfeasance involved.
I thought more highly of the competency of the IRS examiners.
grantcart
(53,061 posts)Found a few properties and forced somecre evaluations that were still to low and missed the majority but since they got millions more than the initial filing thought that they "got most if not all"
haele
(12,654 posts)I'd hazard a guess that, like the NYC FBI office, the NYC IRS offices will only go after tax evasion if there's more serious crimes involved, or if one "family" gets enough political clout to convince them it's in their best interest to take down the other "family".
There was a question about Giuliani's going after Gotti back in the 80's, 90's...looks like that vacuum was what enabled the Russians and their satellite Eastern European mobsters (Ukrainians, Georgians, etc...) to wrest control of the East Coast operations from the last of the old families that stood up to them.
Haele
Salviati
(6,008 posts)It should be 175% of what is underpaid.
fierywoman
(7,683 posts)soryang
(3,299 posts)bluestarone
(16,940 posts)THAT still isn't enough!! They gotta STEAL from us ALL!!!
Perseus
(4,341 posts)I want to hear "And it WILL cost them"
Could??? Why could? This should not be question, or a doubt...
BamaRefugee
(3,483 posts)In NYC all you have to do is find the right guy, and give the right amount of money.
DONE.
And I lived in Manhattan for 15 years, I'm qualified to speak.
matt819
(10,749 posts)To what degree has this con job of a family perpetrated similar frauds overseas? And will any country or local authority do their own deep dive and demand payment of taxes and penalties?
Here's a "thought experiment." Replace the Las Vegas shooter with Trump, without the suicide. Wanna bet he'd be walking free?
And while we're at it, whatever became of David Pecker's safe full of secrets?
Vinca
(50,273 posts)I remember when my husband and I were newly self-employed and misfiled out taxes out of ignorance. We were audited and had to go back 7 years and refile. (It turned out to be a big favor because we ended up getting thousands of dollars back.)
SergeStorms
(19,201 posts)making $30,000 a year would never get away with this. The penalties and interest alone should ruin the Trump family. And Donnie? There's no bankruptcy that can save your fat orange ass either. Now this is what should happen. I'm curious to see exactly what does happen.