Former Trump lawyer Michael Cohen speculated that President Trump has not released his tax returns because of the potential for a massive bill for back taxes.
On Tuesday, CNN host Alisyn Camerota asked Cohen, who released a memoir earlier this month titled Disloyal, if he was aware of why the president has concealed his tax returns from the public. Cohen said he believes it is because accountants will potentially discover fraud.
“Michael, do you know what’s in Donald Trump’s taxes that he doesn’t want to reveal?” Camerota asked.
“Yea, the fact that he doesn’t report the income that he claims. His wealth is not as significant. And I believe that they were probably very lenient in how they took deductions,” Cohen said. “His biggest fear is that, if in fact that tax return is released, that there’s a whole slew of organizations, of accountants, and forensic accountants that will rip through it, and he will end up with a massive tax bill, fraud, penalties, fines, and possibly even, you know, tax fraud.”
In July, the Supreme Court ruled that New York prosecutors may pursue the president’s financial records. The case, Trump v. Vance, pertains to the district attorney for New York County asking for eight years’ worth of Trump’s personal tax returns in connection with a grand jury investigation. The documents are material of which the president may not claim executive privilege.
In August, New York Attorney General Letitia James revealed her office is investigating the Trump Organization to determine whether it inflated the value of its assets to mislead lenders.
The civil investigation into the company began after Cohen testified before Congress in early 2019 that his former boss’s financial statements, spanning from 2011-13, “inflated the values of Mr. Trump’s assets to obtain favorable terms for loan,” according to a filing James issued last month.
The Manhattan District Attorney’s Office also subpoenaed Deutsche Bank, a creditor for Trump’s properties as a private citizen, last year as part of its criminal investigation into the president’s business practices, according to a New York Times report last month. Authorities reportedly sought to obtain all documents and records Trump submitted to the bank.
Over the course of several months, the bank provided District Attorney Cyrus Vance’s office with detailed financial statements and materials the president provided in order to obtain loans. Sources reportedly said the prosecutor’s investigation is still in its early stages.
