Tuesday, July 16, 2024

Donald Trump May Have Broken IRS Law By Not Distributing Any Percentage of Funds He Placed in Tax Free Charity


EXCLUSIVE “Donald Trump may have broken the law…” I know, you’re thinking, how quaint.

But the Donald Trump Foundation– now under investigation by NY State and soon to stand trial– has a legal issue.

The Trump Organization contributed $502,400 to the Foundation in 2017 according to recently released tax forms. But the Trump Foundation in turn didn’t disburse one penny of it, or the other $271,356 it received in unspecified donations. The information comes straight from the Foundation’s recently filed Form 990.

According to IRS rules, private charities must disburse at least 5% of the money they’ve taken in in one year. This is so donors can’t just park money in a tax free account. The Trump Foundation currently has $1.7 million in assets, but hasn’t given any of it away.

From the IRS: A foundation that fails to pay out the distributable amount in a timely manner is subject to a 30 percent excise tax under section 4942 on the undistributed income.  The tax is charged for each year or partial year that the deficiency remains uncorrected.  An additional 100 percent tax is triggered if the foundation fails to make up the deficient distribution within 90 days of receiving notification from the IRS of its failure to make minimum distributions.

So let’s see what the NY State Attorney General’s office, as well as the IRS, concurs about this latest chapter.

Roger Friedman
Roger Friedmanhttps://www.showbiz411.com
Roger Friedman began his Showbiz411 column in April 2009 after 10 years with Fox News, where he created the Fox411 column. His movie reviews are carried by Rotten Tomatoes, and he is a member of both the movie and TV branches of the Critics Choice Awards. His articles have appeared in dozens of publications over the years including New York Magazine, where he wrote the Intelligencer column in the mid 90s and covered the OJ Simpson trial, and Fox News (when it wasn't so crazy) where he covered Michael Jackson. He is also the writer and co-producer of "Only the Strong Survive," a selection of the Cannes, Sundance, and Telluride Film festivals, directed by DA Pennebaker and Chris Hegedus.

Read more

In Other News