"This 'inquiry' by NYC democrats is 100% motivated by politics, publicity and rage. They know very well that there's nothing here and that there was no tax benefit whatsoever. These politicians are simply ruthless," Ivanka Trump claimed.
The records requests followed recent reporting in The Times, which are based partly on two decades' worth of Trump's tax filings. The filings show that the president reduced his company's income tax liability over several years by deducting $26 million in consulting fees as a business expense. Those fees were paid to unidentified consultants on numerous projects between 2010 and 2018.
Records suggest that $747,622 of those fees were paid to Ivanka Trump through a company she co-owned when she was also a Trump Organization executive, the New York Times reported.
On a 2017 disclosure she filed when joining the White House as a senior presidential adviser, she reported receiving payments from the consulting company, totaling $747,622, the Times reported. That amount exactly matched consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Hawaii and Vancouver, British Columbia.
It appears that Ivanka Trump was treated as a consultant while also working as an executive for the Trump Organization, which made the payments.
CBS News reported that this situation wouldn't necessarily pose a legal issue for Ivanka Trump, as long as she paid income tax on the consulting payments.
It could, however, raise questions about whether the Trump Organization's related tax deductions were allowable, CBS News added. The Internal Revenue Service has been known to pursue civil penalties over large consulting fee write-offs it found were made to dodge tax liability.
The two investigations are related to allegations, made in news reports and by Trump's former lawyer, Michael Cohen, that Trump had a history of inflating the value of some assets to impress banks and business partners, but lowering that value when seeking tax benefits, CBS News added.(c)2020 The Mercury News (San Jose, Calif.) Distributed by Tribune Content Agency, LLC