As Democrats Target Trump’s Tax Returns, Audit Claims Become Prominent – By Reuters

By David Morgan

WASHINGTON (Reuters) – Congressional Democrats are examining strategies to obtain President Donald Trump’s tax returns, potentially focusing on the Internal Revenue Service (IRS) audit that Trump frequently cites as his reason for withholding the documents. Sources indicate that emphasizing the audit rather than targeting Trump directly may provide Democrats with a strong legal basis for what would likely lead to an unprecedented court battle over the tax records of a sitting president.

By concentrating on the audit, the request for Trump’s tax returns would more clearly fall under the oversight jurisdiction of the House of Representatives’ tax committee, which supervises the IRS. This approach could also mitigate Republican criticisms of Democrats conducting a politically motivated inquiry.

House tax committee Chairman Richard Neal, who has pledged to request Trump’s returns, stated that the long-standing audit issue could ultimately inform the committee’s decision on whether to pursue legal action to obtain the records.

The matter is expected to gain traction soon, as a subcommittee of Neal’s panel has scheduled a hearing for February 7 on "presidential and vice-presidential tax returns.” The hearing is intended to cover "H.R. 1," a bill aimed at requiring presidential candidates to release their tax returns during elections.

Another avenue for House Democrats could involve investigating whether Trump benefited from the Republican tax overhaul he enacted in 2017, or how proposed amendments to the tax code might affect his income in the future.

No final decisions have been made regarding these strategies, and sources involved in the discussions could not clarify how much weight House officials might give to any particular proposal.

These deliberations reveal the cautious approach Democrats are taking as they embark on investigations related to Trump, his businesses, and his presidency now that they hold a majority in the House.

"The president has repeatedly indicated his intent to release his tax returns, citing the ongoing audit as the reason for not doing so," Neal noted, emphasizing that he is the only House member authorized to request Trump’s returns from the Treasury Secretary.

"If we can’t achieve a voluntary submission, we will utilize the legal avenues available to us," Neal said.

Democrats on the committee have refrained from commenting on specifics, while a representative from the Treasury, which oversees the IRS, mentioned that the legality of any request for Trump’s returns would be reviewed by the department’s legal counsel.

The White House has not responded to inquiries regarding this issue.

Historically, as the Republican nominee in 2016, Trump set a precedent by refusing to release his tax returns, claiming they were under audit. However, many experts contend that an IRS audit does not prohibit the release of tax documents.

As president, Trump continues to own extensive hotel interests and various business ventures, prompting House Democrats to argue that his tax returns are essential for oversight investigations concerning possible connections between the president and foreign entities, including Russia, as well as other potential conflicts of interest.

Federal law grants the chairmen of the House tax panel, the Senate Finance Committee, and the congressional Joint Committee on Taxation the authority to request any tax return, stipulating that the Treasury Secretary "shall furnish" them.

It is anticipated that Trump and Treasury Secretary Steven Mnuchin would contest any such request. Although the law has been employed to obtain tax records, which are typically kept confidential by the IRS, modern presidents have voluntarily disclosed their returns to promote transparency.

Progressive Democrats and advocacy groups are intensifying their calls for Neal to act promptly to secure and publicly release Trump’s returns.

"The legal framework is very explicit in entitling us to those returns," stated Representative Lloyd Doggett. "If the Treasury Secretary refuses our request, we will need to pursue court action."

Experts warn that engaging in an approach without careful justification could expose Democrats to accusations of overreach from Republicans.

"This establishes a troubling precedent. If they can insist on public access to the president’s tax returns, what’s to prevent them from seeking access to anyone’s tax returns?" cautioned Representative Kenny Marchant, a Republican member of the tax committee.

Neal has various legitimate paths available for pursuing Trump’s tax returns, including focusing on the IRS audits. "There are numerous valid reasons for why the Ways and Means Committee would seek the president’s tax returns," remarked Steve Rosenthal, a senior fellow at the nonpartisan Tax Policy Center.