The tax service argued that the Trump Organization attempted to claim identical losses twice. President Trump called the audit a ‘disgrace.’
An audit that dated back to a $72.9 million tax refund claimed by Donald J. Trump since around 2010 seems to have been settled in an agreement with the Justice and Treasury Departments.
This agreement resolves an unusual lawsuit filed by Mr. Trump and his sons against the Internal Revenue Service. It spares the president from a potential ruling that could have cost him over $100 million, based on a 2020 analysis of his tax returns by The New York Times.
Two years ago, Eric Trump, Mr. Trump’s middle son, confirmed to The Times that the audit was still active. During President Trump’s first term in office, documents showed the matter was put on hold. It is unclear if the audit was halted again during the current term.
The audit involved a $72.9 million tax refund Mr. Trump received and claimed starting in about 2010. This refund included all federal income tax paid plus interest for 2005 through 2008, reportedly the president’s most lucrative years from his reality show ‘The Apprentice.’
Mr. Trump justified the refund by reporting significant business losses, totaling $1.4 billion, from 2008 and 2009. He argued these losses were prevented by tax laws from being used in prior years.