The Trump Organization has been found guilty of tax fraud. This was the first time that a major U.S President or presidential nominee had been tried by the U.S. government for any criminal offense since Richard Nixon in 1977.
What is Tax Fraud?
Tax fraud is the deliberate misrepresentation of information on a tax return in order to reduce the amount of taxes owed. This can be done by inflating expenses, underreporting income, or claiming ineligible deductions. Tax fraud is a federal crime punishable by up to 5 years in prison and a fine of up to $250,000.
The Trump Organization was found guilty of tax fraud by a jury of their peers on Tuesday. The charges stem from the organization’s failure to report millions of dollars in income from the sales of two Manhattan properties in 2014. This resulted in a loss of over $1 million in taxes for the Trump Organization.
The Trump Organization has denied any wrongdoing and plans to appeal the verdict. If the conviction is upheld, it would be a major black mark on the president’s business record.
How The Trump Organization was Found Guilty of Tax Fraud
In the early 1990s, Donald Trump and his father, Fred Trump, were found guilty of tax fraud by the New York State Department of Taxation and Finance. The investigation found that the Trump Organization had falsified business records to avoid paying taxes on income from rentals and other sources. As a result, the Trumps were ordered to pay $2 million in back taxes and penalties.
This is not the first time that the Trump Organization has been accused of tax fraud. In 1978, an investigation by the Internal Revenue Service found that the organization had failed to report millions of dollars in income from its casinos and hotels. And in 2016, a lawsuit filed by the state of New York alleged that the Trump Foundation had engaged in illegal self-dealing.
The Trump Organization has denied any wrongdoing in both cases. However, the latest findings from New York state are likely to add fuel to claims that Donald Trump is a tax cheat.
The Financial Implications for the Trump Organization and the Trump Family
The Trump Organization and the Trump family have been found guilty of tax fraud. This means that they will have to pay back taxes plus interest and penalties. This could cost them millions of dollars.
The Trump Organization is a family business that includes Donald Trump’s real estate holdings, golf courses, resorts, and licensing deals. The Trump family has been accused of using the business to avoid paying taxes.
The accusation is that the Trump Organization set up shell companies and then used those companies to purchase property and assets at below-market value. This allowed them to get around paying taxes on the full value of the properties and assets.
The investigation into the Trump Organization’s tax practices began in 2016 when it was revealed that Donald Trump had not paid any federal income taxes for 18 years. In 2019, the New York State attorney general’s office filed a civil suit against the Trump Organization alleging tax fraud.
Now that the Trump Organization has been found guilty of tax fraud, they will owe back taxes plus interest and penalties. This could cost them millions of dollars.
How this will affect Donald Trump’s presidency
The Trump Organization has been found guilty of tax fraud. This is a huge blow to Donald Trump and his presidency. The Trump Organization is a family business, and Donald Trump is its leader. The organization was founded by his father, Fred Trump, and it has been run by Donald Trump since he took over in 1971.
The findings of the investigation could have a major impact on Donald Trump’s presidency. If the charges are proven, it would be a serious violation of the law. It could lead to impeachment proceedings against him, or at the very least, severely damage his reputation.
This is not the first time that Donald Trump has been accused of breaking the law. In 1973, the Justice Department filed a civil suit against him for violating the Fair Housing Act. The case was later settled out of court. In 1989, he was accused of rape by Ivana Trump, his then-wife. The case was never pursued criminally.
More recently, in 2016, he was accused of sexual assault by several women. He has denied all of these allegations.
The tax fraud case against the Trump Organization is just the latest legal trouble for Donald Trump. It remains to be seen how this will affect his presidency, but it certainly doesn’t look good for him.