Trump Declines to Release Tax Returns Until After IRS Audit

Republican presidential front-runner Donald Trump has been unrestrained when attacking his fellow contenders both on and off the debate stage. It is no secret that Trump supporters admire their candidate’s political incorrectness and willingness to “tell it like it is.” Yet apparently Mr. Trump has decided to take a more cautious approach with respect to his own personal finances. In the last presidential debate, Mr. Trump came under heavy fire to release his personal income tax returns. The front-runner insisted that he cannot release these returns because they are under audit by the Internal Revenue Service (“the IRS”).    

The release of personal tax returns has been a standard rite of passage for presidential candidates for the last several decades. It is an act of transparency that gives potential voters a portrait of the candidate’s private financial life. Tax returns can shed light on such matters as a candidate’s income sources, business holdings, charitable contributions and offshore accounts. The vast majority of candidates who have run for president during the past four decades have released their tax returns to the voting public.   

By law, the IRS is prohibited from disclosing an individual’s tax matters to unauthorized third parties. However, there is no rule that an individual cannot voluntarily share his or her own tax information with others, even while under audit. Furthermore, even if Mr. Trump is reluctant to release the returns under examination, challengers have been quick to point out that he could save face by releasing earlier returns upon which an audit is complete.     

Tax practitioners who have weighed in on the matter have generally sided with Mr. Trump. If the returns were released, they would be immediately scrutinized by thousands of tax professionals across the country. Comments from these experts could lead an examining agent to question transactions or positions that may have otherwise gone unnoticed. Most professionals further advise against releasing past returns during an audit, since many transactions span multiple tax years such that the returns are intertwined.  

Mr. Trump’s political opponents have speculated that his unwillingness to release his tax returns could be due to trouble in his business dealings or that his net worth is considerably lower than he claims.  Despite increasing pressure, Mr. Trump has stood his ground. Whether Mr. Trump is simply being prudent or whether his returns do in fact contain a proverbial “bombshell” remains to be seen.  For now, Trump supporters and opponents alike are left with only the conclusion that the immediate release of Mr. Trump’s tax returns is not a part of his plan to “make America great again.” 

Visit the Schneider Downs tax blog to read similar tax-related articles.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Tax, Tax Policy BY Kirk Mitchell
Summary of President Biden’s 2025 Revenue Proposals Released in Treasury’s Greenbook
The Importance of Certified Business Valuation Professionals
Tax, Tax Impact BY Jared Sofranko
IRS Tax-Exempt and Governmental Entity New Compliance Programs
Tax BY Brianna Lundy
Employee Retention Credit: IRS’s Voluntary Disclosure Program Expiring on March 22, 2024
Pillar Two is Here; Is Your Company Ready?
Not-for-Profit, Tax BY Sarah Piot
Not-For-Profit Tax Credit Opportunities Included in the Inflation Reduction Act
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×