A New York jury found the personal corporations of former President Donald Trump guilty of various tax fraud schemes yesterday. The charges included conspiracy, criminal tax fraud, and falsifying business records.
It took the jury less than two days to come back with guilty verdicts for the corporations on all charges. The two entities face penalties totaling more than $1.6M.
No individuals, including our former President, were named in this case, but you can rest assured that individual indictments for corporate officers are forthcoming.
The basic gist of the case was an off-the-books scheme to provide additional compensation to executives in the form of car leases, apartments, and cash. All of these items are taxable events, and none were properly reported.
The biggest bombshell of the case involved checks, personally signed by our former President, paying for the private school tuition of his former finance chief Allen Wiesellberg’s grandchildren. This additional compensation was also not reported.
As you may or may not know, compensation that comes in any type, shape, or form, is a reportable transaction on an employee’s W-2. This compensation is subject to income tax and appropriate payroll taxes.
The star witness in the case, former Trump Organization finance officer Allen Weisellberg, has already pled guilty to fifteen felonies for his role in the schemes. Under an agreement with the prosecutors and in exchange for his testimony, he’ll supposedly be sentenced to 5 months in prison.
He’ll probably only serve a fraction of that time at a country club type facility, but he’s going down. The only real question is, “Who’s next?”
Let me leave you with this.
Given the deal that the prosecutors gave Mr. Weisellberg, it’s obvious that they’re out headhunting. They want the boss.
Imagine what kind of job you could get if you were the prosecutor who got a guilty verdict on a former President. You could write your own ticket at the Law Firm of Dewey, Cheatum, and Howe. That partnership would include a Lake Forest Mansion, a spouse with just enough plastic surgery, private schools for the kiddies, and an eight figure retirement account.
When they’re ready and assured of a guilty verdict, they’ll indict.
I’ve said it before and I’ll say it again; income tax evasion is one of the simplest charges for the feds to prove. Think about it.
In this case all they had to do was prove that the Trump Organization executives received the leased cars, apartments, cash, or private school tuition. Then they looked at the W-2’s and the income tax returns and showed that none of it was reported.
Over. Done. Fahgetabadit. Guilty. Don’t pass go. Don’t collect $200. You’re the next contestant on that fun-filled family gameshow aptly named, “Don’t Drop The Soap.”
Tax fraud cases are mostly black and white issues, without shades of grey. Put it out of your mind. Don’t do it.
And for the sake of whatever God you pray to, don’t call your accountant and ask if it’s okay. It isn’t. It never has been and never will be. Jail cells normally hold more than one person, and I’m not going.
That being said, please get your work from 2022 into us ASAP. I need to do year end tax planning for you. It’s difficult if not impossible for me to do that without having a nailed down November Balance Sheet.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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