Trump’s Tax Audit Resolution

The tax service accused the Trump Organization of claiming the same losses twice. President Trump called the audit a “disgrace.” The audit involved a $72.9 million tax refund that Donald J. Trump claimed and received starting around 2010.

The audit, which President Trump has faced since his time as a television celebrity, likely ended with this week’s agreement with the Justice and Treasury Departments. This agreement resolves an unusual lawsuit that Mr. Trump and his sons filed against the Internal Revenue Service. According to The New York Times’ 2020 analysis of his tax returns, the agreement saves him from a possible ruling that could have cost him over $100 million.

Two years prior, Eric Trump, the middle son of Mr. Trump, confirmed to The Times that the audit remained active. Documents obtained by The Times revealed the matter was put on hold during Mr. Trump’s first term. It is uncertain whether it was on hold again or resolved during his current term. If unresolved until this week, the interest and penalties would have escalated significantly.

Mr. Trump has consistently stated that he did nothing wrong when filing his tax returns. The audit concerned the $72.9 million tax refund he started to receive in 2010, representing all the federal income tax he paid, plus interest, from 2005 to 2008. These were his peak earnings years as the star of “The Apprentice.” He justified the refund by reporting substantial business losses amounting to $1.4 billion from 2008 and 2009, which tax laws prevented him from using in earlier years, as previously reported by The Times.