Trump Taxes Targeted By IRS And Democrats: 'Huge Liability,' 'This Is Real Money'

Donald Trump faces a pair of daunting tax challenges now that he’s out of office, with the IRS considering whether to take back $72.9 million in refunds and congressional Democrats aiming to publicize his tax returns.

Both processes were more or less on hold during his presidency, but can now resume under the control of Biden’s Treasury Department and Democratic control of Congress, The Washington Post reports.

Trump's conflict with the IRS started in 2010 when he said he had been overtaxed by millions and requested a refund. The IRS granted his refund and then got to work afterward figuring out whether he actually deserved it.

The IRS tapped the brakes on their investigation while Trump held the presidency, but now that the ethical, legal and political minefield has vanished it’s likely to try to bring the case to a close. If the IRS does take back the money, it will come with interest, costing Trump over $100 million, something his floundering properties are in no shape to provide.

“The IRS — and, I imagine, even [the Joint Tax Commission] — wouldn’t be really crazy about trying to get into a big confrontation while Trump was president. So a delay was understandable,” Steven Rosenthal, a senior fellow with the Urban-Brookings Tax Policy Center told The Washington Post. “[Now] I think it’ll finish.”

The second threat, congressional Democrats looking to publish his tax returns, was also halted by Trump’s Treasury Department. The IRS will technically still be run by Trump appointee Charles Rettig until 2022, but Rettig passed responsibility to Treasury Secretary Steve Mnuchin during Trump’s term. Now, the Secretary of the Treasury is Janet Yellen.

Democrats are already pushing to have Trump’s taxes released, putting the ball in Yellen’s court. District Judge Trevor McFadden has said he’s waiting to see whether Biden’s administration will contest the move before proceedings commence.

Either one of these challenges could be devastating to Trump. Democrats have been pursuing his taxes for years, with each obstruction only making them more certain the contents will be highly damaging to his brand. The IRS poses a more practical threat, clawing back millions as Trump’s profits falter and other debts come due.

“The outcome of all this may be a huge liability for Donald Trump,” Rosenthal said. “This is real money.”