IRS can punish Donald Trump and his foundation
NEW YORK: The New York attorney general sued President Donald Trump and his foundation on Thursday. But his bigger problem might be with the Internal Revenue Service.
The lawsuit accused Trump and three of his children of using the Donald J Trump Foundation, a non-profit charity, for political and business purposes, even though he signed federal tax returns swearing that was not happening.
Attorney General Barbara D Underwood referred her findings to the IRS for further investigation.
Any involvement of the IRS puts in play a range of possibilities.
The agency has the power to bring civil penalties, and its investigation could lead to federal criminal charges. Similar behaviour has prompted federal prosecutions, according to lawyers who have worked on such cases.
In 2007, Vincent Fumo, then a powerful Democratic state senator in Pennsylvania, was indicted by the Justice Department for misusing a charity run by a former member of his government staff. A federal jury convicted him. Fumo’s punishment: four years in prison.
The lawsuit by the state attorney general, filed in New York’s Supreme Court, claims that Trump’s charitable foundation was used to help his 2016 campaign and to pay legal settlements involving his businesses.
The foundation was supposed to be solely for dispensing money to non-profit organisations and other activity in the public interest.
The suit seeks to dissolve the foundation and have its funds disbursed to unnamed charities.
The lawsuit accused Trump and three of his children of using the Donald J Trump Foundation, a non-profit charity, for political and business purposes, even though he signed federal tax returns swearing that was not happening.
Attorney General Barbara D Underwood referred her findings to the IRS for further investigation.
Any involvement of the IRS puts in play a range of possibilities.
The agency has the power to bring civil penalties, and its investigation could lead to federal criminal charges. Similar behaviour has prompted federal prosecutions, according to lawyers who have worked on such cases.
In 2007, Vincent Fumo, then a powerful Democratic state senator in Pennsylvania, was indicted by the Justice Department for misusing a charity run by a former member of his government staff. A federal jury convicted him. Fumo’s punishment: four years in prison.
The lawsuit by the state attorney general, filed in New York’s Supreme Court, claims that Trump’s charitable foundation was used to help his 2016 campaign and to pay legal settlements involving his businesses.
The foundation was supposed to be solely for dispensing money to non-profit organisations and other activity in the public interest.
The suit seeks to dissolve the foundation and have its funds disbursed to unnamed charities.