Wednesday, February 6, 2019

President Trump's Elusive Tax Returns


More than two years ago then candidate Donald Trump explained that he was unable to release his tax returns, as was the practice of most candidates, because they were being audited by the Internal Revenue Service. His ascendancy to the presidency apparently has not spurred the IRS to complete its task. So far as we know, that agency is still poring over those returns and acting with such deliberate speed as may take a full generation to conclude. Or maybe it finished the job and Mr. Trump simply forgot to let us know.

I suppose we should applaud President Trump’s fairness and restraint in not seeking special treatment or expedited action from an arm of government whose head he appoints. Now, those returns must be extremely complicated or the audit trail so explosive that the IRS is fearful of what it might find. Or maybe the agency is unable to enlist a volunteer to deliver its findings to the president.

Once the audit is completed, the range of possible outcomes is limited to the following:

1.     The returns are in perfect order, all entries are accurate and all filing requirements have been met;

2.     The returns contain innocent errors which require amendment and assessment of some amount of underpaid taxes and penalties;

3.     The returns disclose sources of income which are problematic, questionable or politically troublesome;

4.     The returns reveal that the taxpayer has used legal devices to pay little or no taxes;

5.     The returns expose the fact that the taxpayer has far less wealth than he has publicly proclaimed;

6.     The returns are found to be fraudulent and mandate referral to the Department of Justice for criminal prosecution.

Which of the above would you put your money on?

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