A tax audit concerning President Trump, which has roots in his former career as a television celebrity, seems to have been settled in a recent agreement involving the Justice and Treasury Departments.
This resolution addresses a lawsuit filed by Mr. Trump and his sons against the Internal Revenue Service. It eliminates the risk of a potential ruling that might have cost him over $100 million, based on an analysis of his tax returns by The New York Times in 2020.
Two years ago, Eric Trump, Mr. Trump’s middle son, confirmed to The Times that the audit was ongoing. During President Trump’s first term, records indicated the audit was paused. It is uncertain if the issue was paused again or resolved during his current term. If unresolved until recently, interest and penalties could have increased considerably.
The dispute stemmed from a $72.9 million tax refund that Mr. Trump claimed and received starting around 2010. This refund covered all federal income taxes paid between 2005 and 2008, coinciding with his peak earning years as a TV reality show star. Mr. Trump justified this claim through massive business losses, totaling $1.4 billion for 2008 and 2009, which tax laws had previously prevented him from deducting, as reported by The Times.
President Trump maintained that his tax return filings were proper and lawful.
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