Politics

Trump's IRS Audit Reveals Potential $100 Million Tax Liability

May 11, 2024 1 min read

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An IRS inquiry has indicated that former President Donald Trump may have improperly claimed tax breaks amounting to over $100 million related to his Chicago tower, as revealed by investigative reports from ProPublica and The New York Times. The IRS is scrutinizing a potentially dubious accounting method used by Trump, which involved writing off the same losses twice. This maneuver centers around a $651 million loss claimed for the year 2008, during a period when the tower's sales lagged behind projections.

The controversy escalated in 2010 when Trump and his advisors restructured the company owning the tower into a new partnership, claiming an additional $168 million in losses over the following decade. If the IRS concludes that Trump's tax practices were improper, the revised tax bill could exceed $100 million, including interest and potential penalties.

The case has wider implications, potentially setting a precedent for how wealthy individuals leverage tax benefits from partnerships. Trump's legal team can contest the IRS's conclusions in court. This audit battle has been ongoing since at least December 2022 and remains unresolved. Meanwhile, Trump faces additional financial challenges, including civil judgments totaling over $542 million from three separate cases over the past year.

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