It is not surprising that Donald Trump refused to release his tax returns, as indicated by those close to the former real estate developer. In a 2017 interview with Forbes, Phil Ruffin, a friend, business partner, and fellow billionaire of Trump, stated that the reason for Trump not showing his tax returns is that it is "like three feet tall" and if it were released, it would be scrutinized heavily, leading to four years of explanations and potential audits with taxable consequences and penalties. Michael Cohen, Trump's former attorney, echoed this sentiment during a 2019 congressional hearing, stating that Trump did not want a group of tax experts to analyze and potentially find issues with his tax return, leading to an audit and potential consequences.
Trump's tax information has not been made public until recently, with some information still being shielded after the House Ways and Means Committee released years of paperwork. However, any information that has been released has resulted in consequences for Trump. The Internal Revenue Service (IRS) has audited Trump's tax returns multiple times, with even basic examinations finding issues. For example, in 2010, Trump claimed a $72.9 million income tax refund, which came under audit and could potentially result in Trump having to pay back the government over $100 million in taxes and interest.
Journalists have also obtained information on Trump's taxes, with The Washington Post discovering issues with Trump's private foundation, including the use of other people's money as if it were his own, leading to a $2 million payment and the shut down of the foundation by the New York attorney general. Forbes analyzed tax documents connected to the Eric Trump Foundation, prompting another state investigation. The New York Times acquired a set of tax-return data in 2020, leading to an IRS meeting and reevaluation of their audit.
Trump's tax returns have also been sought out by prosecutors, with the Manhattan district attorney successfully acquiring them and ultimately convicting Trump's chief financial officer and business on criminal charges, including fraud and conspiracy. The New York attorney general's office has also obtained a set of tax documents and is now suing Trump and his business in a $250 million fraud case, which Trump has referred to as a "witch hunt."
Recently, Congress also obtained Trump's tax returns, with the House Ways and Means Committee securing them and releasing a report outlining potential tax issues, such as suspicious loans to Trump's children, and exposing the IRS's lenient treatment of Trump.
Now, with the release of Trump's actual tax returns, thousands of people, including academics and accountants, can examine the filings in detail. In a statement, Trump claimed that the release of his tax returns was a "political hit job" and insisted that he paid millions in taxes. However, the information released thus far shows that Trump paid little in federal income taxes in recent years, including paying no income taxes in ten of the past fifteen years and only $750 in federal income taxes in both 2016 and 2017. Trump also has hundreds of millions of dollars in debt coming due in the next few years and was under audit by the IRS for a $72.9 million refund claim.
Trump's refusal to release his tax returns, which has been a longstanding tradition for presidential candidates, has sparked much controversy and criticism. It is clear that Trump had good reason to be concerned about the release of his tax information, as it has consistently led to consequences and scrutiny. With the latest release, the potential damage to Trump's reputation and financial standing may be the most significant yet.
