Trump Organization
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New York City DA Targets Trump Organization

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Over the last few years, there have been numerous questions surrounding the legality of Donald Trump's business tax deductions. As of July 2, 2021, however, the New York City DA finally decided to take action against the Trump Organization. Julian Block explains.

Jul 15th 2021
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The articles that I’ve previously done for AccountingWEB all focus on various aspects of federal income taxes. This one doesn’t; it focuses on New York City income taxes.

Why did I decide to replace federal levies with local levies? Because the New York Times for July 2, 2021, displayed this page-one headline: “Trump Business Charged With ‘Audacious’ Tax Fraud.” Right below it are headlines for two articles by a team of reporters: “Prosecutors Describe 15 Years of Hiding Executives’ Luxury Perks and Bonuses” and ”Striking at Heart of Ex-President’s Image.”

The reporters disclose that Manhattan’s district attorney, Cyrus R. Vance Jr., charges the Trump Organization “with running a 15-year scheme to help its executives evade taxes by compensating them with fringe benefits that were hidden from the authorities.” The DA’s 15-count indictment issued on June 30, 2021, states that the Organization’s long-serving chief financial officer, Allen H. Weisselberg, avoided taxes on $1.7 million of off-the-books perks that he should’ve reported as income.

The reporters mention the CFO’s false statement that he isn’t a resident of New York City, thereby lowering his liability for New York City income taxes. Actually, he and his wife permanently reside in a rent-free apartment in Manhattan.

One of the counts specifies that the Trump Organization gave its CFO about $1.2 million for rent, utilities and related expenses for the apartment over a 15-year period from about March 31, 2005 to about June 30, 2021, the date of the indictment’s issuance.

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Replies (4)

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By Skipper50
Jul 16th 2021 16:43

More politicizing of law.

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Replying to Skipper50:
Julian
By Julian Block
Jul 17th 2021 04:19

It would be helpful for me and others if you would amplify on what you mean when you use a word like "politicizing."

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By SkinnVinny
Jul 17th 2021 01:30

While the prosecution may be technically correct, no doubt this sort of thing happens with both political parties.

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Julian
By Julian Block
Jul 17th 2021 04:29

I'm pleased that you again thought to comment. As someone who grew up in Chicago, I agree that no political party has a lock on virtue. Still, it would be helpful if you went into more detail.
I await and encourage your next comment.

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