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Because it would be stupid to do so under audit.


Legal Experts Side With Trump; It Would Be Crazy to Release His Taxes During Audit
In February, when this issue was first brought up by Trump’s Republican opponents, we reached out to high profile tax attorneys and accountants who typically deal with high-net worth individuals.  We posed two questions to them: 1) What would you advise your clients?  2) Do Trump’s statements (above) seem like a plausible explanation to you?

 

Robert Barnes, a Los Angeles based attorney:

 

“I see some of my colleagues would tell their clients to release their tax returns to the public during an audit. Ask them to name a single client they actually gave that advice to. I think that would be legal malpractice, and would recommend their clients sue them if they gave that advice. I advise my clients (hundreds over the years who actually experience an IRS inquiry) to NEVER release their tax returns while an audit is going on.  I am certain Mr. Trump’s lawyers, very capable and well-respected in this field, have advised him not to disclose his tax returns during the audit. There are many reasons for this.

 

First of all, and most importantly, the IRS is not allowed to show your client’s tax returns to anyone else. Such returns are protected by the privacy laws of section 6103 of Title 26 of the Code. The only way they could do so if your client had a lawyer dumb enough to let you disclose those records publicly. The IRS could then misuse this otherwise private information to make the audit process more difficult at many levels, and could cause problems for other entirely innocent businesses you do business with.

 

Second, releasing the returns during an audit could cause anyone who has a grievance with you to misuse the released information, and try to intervene in the audit process, for their own personal, financial or political gain. I have been through this several times in other contexts where such records were obtained by people with an interest adverse to my client, which unnecessarily protracted the process as undue expense and harassment of my client.

 

<p class="">Third, tax returns usually reveal business strategies that may need revision during the audit process, for which untimely disclosure could unduly hinder and harm, with third parties often the victim as much as the client.”

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Robert Kovacev, a Washington D.C. based attorney:

 

“I would absolutely advise a client not to release returns under audit to the public. Critics could pull certain items on the returns out of context and there would be political pressure on the IRS to scrutinize those items even if they ordinarily wouldn’t be controversial.


Lots of transactions span several tax years so he is also right that one years return may be intertwined with another.”

 

Robert Mckenzie, a Chicago based attorney:

 

“I would advise my client that there could be huge risks in releasing complex returns during an audit. Instead of having just an IRS agent review the return it now would be reviewed by  thousands of tax experts.  The first step his opponents would take would be to assign the best tax accountants and tax lawyers on his team to analyze the returns. In addition, reporters would seek out tax experts to review the returns. (I reviewed Mitt Romney’s, Dennis Santorum’s and Newt Gingrich’s returns last cycle at the request on a national publication.) All the comments would lead the agent to more and more issues. On the other hand the political damage of a failure to release may out weigh the risk of a larger tax deficiency.”

 

Continued...

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<p class="">http://lawnewz.com/politics/legal-expert...ing-audit/

Pant suit supporters have to do everything in their power to take the focus off her ugliness and corrupt ways, so they hang their hats on the tax return thing. Sad.

BUT WHY IS HE BEING AUDITITED?

Quote:BUT WHY IS HE BEING AUDITITED?

Targeting by the IRS most likely, but nobody wants to talk about that...

For the same reason Hilary won't release her speeches.

Quote:Targeting by the IRS most likely, but nobody wants to talk about that...

 

Oh, I'm sure he's done nothing to warrant scrutiny.

Quote:Oh, I'm sure he's done nothing to warrant scrutiny.

So you think it was just random?

Quote:BUT WHY IS HE BEING AUDITITED?

Because at some point it happens to everyone who owns a business. It's only a big deal at this point in time because it's Trump running for POTUS. Otherwise no one would give a rat's butt.

So, are people on here willing to trust the opinion of highly respected tax attorneys with no skin in the game, or do we have folks on here who are lawyers and debunk the advice given to DT?


The usual suspects, I eagerly await your reply.

Quote:So, are people on here willing to trust the opinion of highly respected tax attorneys with no skin in the game, or do we have folks on here who are lawyers and debunk the advice given to DT?


The usual suspects, I eagerly await your reply.

 

Do you not see the difference between a tax attorney's normal clients and one who is running for POTUS?

 

Richard Nixon released his tax returns while they were being audited.

 

Trump could settle the controversy by simply releasing his returns, but he's hiding behind his lawyer's advice. That's his right, but if it was anyone else, especially Hillary Clinton, are you telling us you'd have the same opinion?

Poor Mr. Small Hands is scared. I would love to see Trump and Clinton debate Gary Johnson and Jill Stein but the corrupt establishment would never allow that.

Quote:Do you not see the difference between a tax attorney's normal clients and one who is running for POTUS?

 

Richard Nixon released his tax returns while they were being audited.

 

Trump could settle the controversy by simply releasing his returns, but he's hiding behind his lawyer's advice. That's his right, but if it was anyone else, especially Hillary Clinton, are you telling us you'd have the same opinion?

 

I will trust the professionals on this. Not the keyboard warriors.

 

Lester Weingarten, New York City based accountant:

 

<p class="">“If his return is under audit, I would advise not to release it to the public as there could be an embarrassing upward adjustment or they could “bless” the return by not making any changes which would be an affirmation of the accuracy of the return (or they could make a highly unlikely downward adjustment).  Either way, it would not be beneficial to release the return until all was settled.    If the return was not under audit, then it is up to him what he wanted to do, but given it is under examination, it would be prudent to wait until the examination has been concluded.

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As far as releasing prior years taxes, each year stands on its own.  However there could be carry forwards of certain items to the most recent year filed (i.e. 2014).  Generally these items would include but are not limited to capital loss carry forwards; net operating loss carry forwards; Investment interest expense carry forwards, passive loss carry forwards, foreign tax credit carry forwards.  Given Mr. Trump’s wealth, the most likely carry forwards would be passive loss carry forwards on partnership investments that throw off losses that cannot be used currently as they are deemed passive activities.  However we are getting too technical.

 

As Mr. Trump stated, he has been audited year after year, presumably the audits on prior years have been concluded, therefore those returns, if he so chose, could be released and as stated above, if there was an upward adjustment, an embarrassment, if there was a “no change”, an affirmation.  He might have a few years where the audit has not been concluded, so as above, I would recommend they not be released. ”

Quote:Do you not see the difference between a tax attorney's normal clients and one who is running for POTUS?


Richard Nixon released his tax returns while they were being audited.


Trump could settle the controversy by simply releasing his returns, but he's hiding behind his lawyer's advice. That's his right, but if it was anyone else, especially Hillary Clinton, are you telling us you'd have the same opinion?

At this point it's not any of our opinions, it's legal advice of actual tax attorney's. There is really no grey area here as far as I can see...

What happened to being the Resident Conspiracy Theorist? 

 

Quote:I will trust the professionals on this. Not the keyboard warriors.

 

Lester Weingarten, New York City based accountant:

 

“If his return is under audit, I would advise not to release it to the public as there could be an embarrassing upward adjustment or they could “bless” the return by not making any changes which would be an affirmation of the accuracy of the return (or they could make a highly unlikely downward adjustment).  Either way, it would not be beneficial to release the return until all was settled.    If the return was not under audit, then it is up to him what he wanted to do, but given it is under examination, it would be prudent to wait until the examination has been concluded.

 

As far as releasing prior years taxes, each year stands on its own.  However there could be carry forwards of certain items to the most recent year filed (i.e. 2014).  Generally these items would include but are not limited to capital loss carry forwards; net operating loss carry forwards; Investment interest expense carry forwards, passive loss carry forwards, foreign tax credit carry forwards.  Given Mr. Trump’s wealth, the most likely carry forwards would be passive loss carry forwards on partnership investments that throw off losses that cannot be used currently as they are deemed passive activities.  However we are getting too technical.

 

As Mr. Trump stated, he has been audited year after year, presumably the audits on prior years have been concluded, therefore those returns, if he so chose, could be released and as stated above, if there was an upward adjustment, an embarrassment, if there was a “no change”, an affirmation.  He might have a few years where the audit has not been concluded, so as above, I would recommend they not be released. ”

There's no real conspiracy.  Most politicians have never held a real job or run a real business.  Still, they hesitate to release tax returns because this is essentially private information.  

 

Now imagine the personal tax return of a guy who runs several giant corporations.  His return would be 400 pages and incomprehensible even to tax experts.  The IRS cannot calculate a simple family return the same way twice. 

 

I got a check from Treasury last week.  Spent 2 hours on the phone trying to find out why.  Nobody could tell me anything other than "an adjustment" was made.  I asked what I could do to avoid overpaying next year.  They couldn't tell me. 

Whether people think he should release them or not, this is a story that will not go away.  The mystery will drive it forward.  Also, what if the audit is over before the election?  Will Trump release then?  

Quote:Do you not see the difference between a tax attorney's normal clients and one who is running for POTUS?

 

Richard Nixon released his tax returns while they were being audited.

 

Trump could settle the controversy by simply releasing his returns, but he's hiding behind his lawyer's advice. That's his right, but if it was anyone else, especially Hillary Clinton, are you telling us you'd have the same opinion?

 

If Hillary was being audited I'd have the same opinion.


 

When Nixon was running the IRS was still a non-partisan agency. Now it's another arm of the Democrat Party.

Quote:I will trust the professionals on this. Not the keyboard warriors.

 

Of course you do, it serves your, and most important, Trump's purpose.

 

If there's nothing to hide, no embarrassing upward adjustment, why not eschew his attorney's advice and clear the air.

Quote:Of course you do, it serves your, and most important, Trump's purpose.


If there's nothing to hide, no embarrassing upward adjustment, why not eschew his attorney's advice and clear the air.

I'm confused of your stance on this. Are you saying these attorney's opinions and advice are incorrect? You referenced Nixon releasing his. Does that make it right?


How can you discount the following advice from someone who does this for a living?


"Second, releasing the returns during an audit could cause anyone who has a grievance with you to misuse the released information, and try to intervene in the audit process, for their own personal, financial or political gain."


"Third, tax returns usually reveal business strategies that may need revision during the audit process, for which untimely disclosure could unduly hinder and harm, with third parties often the victim as much as the client.”

Quote:I'm confused of your stance on this. Are you saying these attorney's opinions and advice are incorrect? You referenced Nixon releasing his. Does that make it right?


How can you discount the following advice from someone who does this for a living?


"Second, releasing the returns during an audit could cause anyone who has a grievance with you to misuse the released information, and try to intervene in the audit process, for their own personal, financial or political gain."


"Third, tax returns usually reveal business strategies that may need revision during the audit process, for which untimely disclosure could unduly hinder and harm, with third parties often the victim as much as the client.”

 

I'm saying the advice is correct under ordinary circumstances, but these are extraordinary circumstances.

 

Trump is a candidate for POTUS.